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/ MTQ CORPORATION LIMITED /
ANNUAL REPORT
2014/2015
CORPORATE GOVERNANCE REPORT
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 confirmed that the non-audit
services provided by the external auditors would not affect their independence. A breakdown of the fees for audit and non-
audit services paid to the auditors for the financial year ended 31 March 2015 are found on page 71 of this Annual Report.
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 quarterly and full year financial statements of the
Group before submitting them to the Board for its approval and the announcement of the financial results.
The Group adopts a bottom-up approach for the risk management process to address financial, operational, compliance
and information technology risks. Business units implement appropriate risk management frameworks and have the
primary responsibility and accountability to identify, evaluate, manage and monitor risks that may have impact on their
operations. Appropriate risk management frameworks that are adopted form integral parts of the business operations.
Risks identified are regularly reviewed and monitored by the respective management teams at management meetings
or at forums specifically convened to ensure sufficient controls are in place to mitigate these risks affecting the Group.
The Group outsources part of 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.
During the year under review, the Board has received assurance from the Group CEO and Group CFO:
•
That the Group’s financial records have been properly maintained and the financial statements for the year ended
31 March 2015 give a true and fair view of the Group’s business operations and finances; and
•
That the effectiveness of the Group’s risk management systems and internal control systems in place is adequate
and effective in addressing the material risks in the Group.
The Group CEO and Group CFO had obtained similar assurance from the respective Managers of the various business
units in the Group.
The Audit Committee has reviewed and is satisfied:
•
with the adequacy and effectiveness of the Group’s internal controls, including financial, operational and compliance
and information technology 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 and risk management framework established and maintained by Management,
work performed by the internal and external auditors, regular audits conducted by independent parties for industrial
accreditation and customer quality controls and reviews performed by management, the Board and the various Board
Committees, the Board, with the concurrence of the Audit Committee, is of the opinion that the Group’s internal controls,
addressing financial, operational compliance and information technology risks that are material and relevant to the
Group’s operations were effective and adequate as at 31 March 2015.
