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MTQ Corporation Limited
Financial Report / 24
The Audit Committee is empowered to investigate any matter within its written terms of reference, including matters relating to the
Group’s accounting, auditing, internal controls and/or fnancial practices brought to its attention. The Audit Committee has full discretion
to invite any Director and/or executive offcer to attend its meetings. The Audit Committee also has full access to records, resources and
personnel, to enable it to discharge its functions properly.
In addition, the Audit Committee reviews the scope and results of the audit and its cost effectiveness, and on an annual basis, the
independence and objectivity of the external auditors of the Group. In doing so, the Audit Committee has also taken into account
the nature and extent of non-audit services provided by them and has confrmed that the non-audit services provided by the external
auditors would not affect their independence.
The Audit Committee meets with the internal and external auditors at least on an annual basis, without the presence of management,
to review the overall scope of both internal and external audits, and the assistance given by management to the auditors. The Audit
Committee pays full attention to any material weaknesses reported and the recommendations proposed by both the internal and
external auditors to ensure that the Group maintains a sound system of internal controls. In addition to the above, the Audit Committee
reviews the half yearly fnancial statements of the Group before submitting them to the Board for its approval and the announcement of
the fnancial results.
The Group has, since FY2007, embarked on an on-going exercise to implement a risk management framework that seeks to provide a
structured and common methodology to identify and manage potential risks affecting the Group, and to ensure suffcient controls are in
place to monitor and mitigate these risks. Details of the Group’s risk management policies and processes are provided under the “Risk
Management” section of the Annual Report.
The Group outsources its internal audit function to Robert Tan & Co., a corporate member of the Institute of Internal Auditors Singapore.
In addition, the independent in-house internal audit division supplements the internal audit activities to further enhance the risk
management of the Group. Reporting directly to the Audit Committee, both internal audit teams plan their work in consultation with, but
independent of management and their yearly plan is submitted to the Audit Committee for review and approval.
The Audit Committee has reviewed and is satisfed:
• with the adequacy and effectiveness of the Group’s internal controls, including fnancial, operational and compliance controls and
risk management policies and systems;
• with the adequacy and effectiveness of the internal audit function;
• that the internal audit function is adequately resourced, and has appropriate standing within the Company and the Group, and
• that the independence of the external auditor has not been compromised in relation to the non-audit services provided.
Based on the internal controls established and maintained by the Group, work performed by the internal and external auditors, and
reviews performed by management, various Board Committees and the Board, the Audit Committee and the Board are of the opinion
that the Group’s internal controls, addressing fnancial, operational and compliance risks, were adequate as at 31 March 2012.
The Company has adopted a whistle blowing policy where employees of the Group may raise concerns about possible improprieties in
matter of fnancial reporting or other matters in confdence. To ensure independent investigation of such matters and appropriate follow
up actions, all whistle blowing reports are to be sent to the Audit Committee. Details of the whistle blowing policy are given to all staff
and new recruits during orientation. The Audit Committee has received no complaints up to the date of this report.
The Audit Committee has recommended to the Board the re-appointment of Ernst & Young LLP as the external auditors of the Company
for the fnancial year ending 31 March 2013.
Principle 15: Greater Shareholders Participation
Shareholders are informed of shareholders’ meetings through notices published in the Business Times, and reports or circulars sent
to all shareholders. The information is also made available on the SGX-ST’s website. If any shareholder is unable to attend, the Articles
have made provisions for shareholders to appoint a proxy or proxies to attend and vote on their behalf. The Company is however,
not implementing absentia voting methods such as mail, e-mail or fax until the security, integrity and other pertinent issues have been
addressed satisfactorily.
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