The system of internal controls and risk management established by the Group provides reasonable, but not absolute, assurance
that the Group will not be adversely affected by any event that can be reasonably foreseen as it strives to achieve its business
objectives. The Board also notes that no system of internal controls and risk management can provide absolute assurance in
this regard, or absolute assurance against the occurrence of material errors, poor judgement in decision-making, human error,
losses, fraud or other irregularities.
Audit Committee
Principle 12: The Board should establish an Audit Committee with written terms of reference which clearly set out its
authority and duties.
The AC is chaired by Mr Tan Cher Liang and comprises Mr Prabhakaran S/O Narayanan Nair and Mr Wong Ah Long.
All the AC members, including the Chairman, are independent directors.
The AC holds at least four meetings in each financial year. The principal functions of the AC in accordance with its written
terms of reference are as follows:
•
reviewing the Group’s financial statements, and significant financial reporting issues and judgements so as to ensure
the integrity of the financial statements and any formal announcements relating to the Group’s financial performance
before their submission to the Board;
•
reviewing the audit plans and reports of the internal and external auditors and to consider the effectiveness of the
actions taken by management on the auditors’ recommendations;
•
ensuring that management provides assistance and co-operation to the internal and external auditors;
•
evaluating the adequacy and effectiveness of the Group’s internal controls by,
inter alia
, reviewing the reports of the
internal and external auditors, and management’s responses and actions to correct any deficiencies and reporting the
same to the Board at least annually;
•
reviewing the adequacy and effectiveness of the Group’s internal audit function;
•
making recommendations to the Board on the appointment, re-appointment and removal of the external auditors;
•
approving the remuneration and terms of engagement of the external auditors;
•
reviewing the independence and objectivity of the external auditors at least annually; and
•
reviewing interested person transactions (as defined in the Listing Manual).
In addition, the AC is tasked to commission independent investigations of any suspected fraud or irregularity, which has or
is likely to have a material impact on the Group’s operating results or financial position, and to review the findings of such
investigations. The AC has reasonable resources to enable it to discharge its responsibilities properly. It has full access to, and
the co-operation of, management and full discretion to invite any director or key executive to attend its meetings.
The AC also meets with the internal auditors and external auditors without management, at least annually and whenever
necessary to review the adequacy of audit arrangements, with emphasis on the scope and quality of audit and the independence
and objectivity of the auditors.
The external auditors provide regular updates and briefings to the AC on changes to accounting standards and other financial
issues to enable the AC to keep abreast of such changes and its corresponding impact on the financial statements.
External Auditors
The AC reviews the independence of the external auditors, RSM Chio Lim LLP, annually. No non-audit services were rendered
by the external auditors, RSM Chio Lim LLP, during FY2015. The audit fees paid/payable to the external auditors, RSM Chio Lim
LLP, for FY2015 amount to S$181,000. The partner in charge of auditing the Group, Mr Eu Chee Wei David, was appointed from
FY2014. The AC is satisfied with the independence and objectivity of the external auditors, RSM Chio Lim LLP.
The Company has complied with Rules 712 and 715 of the Listing Manual in the appointment of its external auditors.
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