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annual report 2011
Corporate
Governance Report
5. DEALINGS IN SECURITIES
The Company has adopted the policies set out in the Listing Manual of the SGX-ST on dealings in the Company’s securities.
The policies have been made known to Directors, offcers and staff of the Group. In particular, it has been highlighted that dealing in the Company’s
securities, when the Company’s offcers (including Directors and employees) are in possession of unpublished material price-sensitive information
in relation to those securities, is an offence. The Company’s offcers (including Directors and employees) are expected to observe insider trading
laws at all times. They are also discouraged from dealing in the Company’s securities on short-term considerations, and are prohibited to trade in
the Company’s securities during the period commencing two weeks before the announcement of the results for each of the frst three quarters of
its fnancial year; and for the period commencing one month before the announcement of its full-year results.
6. INTERESTED PERSON TRANSACTIONS
Disclosure of interested person transactions is set out on page 102 of this Annual Report. When a potential confict of interest arises, the director
concerned does not participate in discussions and refrains from exercising any infuence over other members of the Board.
As a listed company on the SGX-ST, the Company is required to comply with Chapter 9 of the Listing Manual of the SGX-ST on interested person
transactions. To ensure compliance with Chapter 9 of the Listing Manual of the SGX-ST, both the Board and the AC will at their respective quarterly
meetings, review with the Management of any potential transactions with interested persons. The Board and the AC will take steps to ensure that
the relevant rules under Chapter 9 of the Listing Manual of the SGX-ST will be complied with.
7. RISK MANAGEMENT AND PROCESSES
The Management and the AC assume responsibility for monitoring the Group’s risk management. The AC ensures that the Management has
adequate internal controls and systems in place, and that corporate governance procedures have been taken into account by the Management in
their overall review and evaluation of the Group’s business and risk management processes.
Material transactions are subject to risk analysis by the Management and the AC. The Management and the AC regularly review the Company’s
business and operational activities to identify areas of signifcant business risks as well as appropriate measures to control and mitigate these risks.
Necessary steps to manage risks in new projects will be taken before they are embarked upon. The Company’s Financial Controller and internal
auditors also assist in the risk management process by identifying and highlighting areas of concern while conducting fnancial/audit checks. The
Board has received assurance from the Management that the Company’s risk management and internal controls are adequate and effective. The
Board has also received assurance from the Management that the fnancial records have been properly maintained and the fnancial statements
give a true and fair view of the Company’s operations and fnances.
In order to further strengthen the Group’s risk management framework, the Management and the AC are in the process of working with an
independent consulting frm to establish a set of customised procedures providing objective assurance on the effectiveness of the Group’s risk
management (the “Enterprise Risk Management Review”).