30
ANNUAL REPORT 2015/2016
Principle 11 : Audit Committee
Principle 12 : Internal Controls
Principle 13 : Internal Audit
Audit Committee
The Audit Committee comprises 3 non-executive Directors, all of whom are independent Directors:
Chew Soo Lin
(Chairman)
Christopher Ho Han Siong
Huang Yuan Chiang
The Audit Committee has been set up to perform the functions required pursuant to Section 201 B(5) of the Companies
Act, the Listing Rules set out by SGX-ST and the Code. The Board is of the view that members of the Audit Committee
have the requisite accounting and financial management expertise or experience to carry out their duties. The Audit
Committee is guided by its terms of reference, which has been in line with the Code.
The Audit Committee meets at least four times a year and plays a key role in assisting the Board to ensure that the
financial reporting and internal accounting controls of the Group meet the highest standards. Changes to accounting
standards which have a direct impact on financial statements will be highlighted to the Audit Committee from time to time
by the external auditor.
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 financial practices brought to its attention. The Audit
Committee has full discretion to invite any Director and/or executive officer 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 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 2016 are found on page 74 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.
CORPORATE
GOVERNANCE REPORT
