Accountability & Audit

Principle 10: Accountability
The Board provides shareholders with quarterly and annual financial reports. Results for the first three quarters are released to shareholders within forty-five days from the end of each quarter. Annual results are released within sixty days from the end of the financial year. In presenting these financial statements, the Board aims to provide shareholders with a balanced and clear assessment of the Group’s performance, position and prospects on a quarterly basis.

Principle 11: Audit and Risk Committee
Our ARC comprises three Independent Directors with Mrs Fang as the Chairman and Mr Pillay and Mrs Sam as members.

The ARC reviews, with the external and internal auditors, their audit plans, the system of internal controls, audit reports, management letter and the Company’s management response. It also reviews the quarterly, half-year, and full-year results, as well as the financial statements of the Group and Company before submission to the Board for its approval, focusing in particular, on changes in accounting policies and procedures, major operating risk areas, and overview
of all group risks on an integrated basis, including all matters affecting the Group’s performance and effectiveness of the Group’s material internal controls. The ARC also reviews all interested person transactions.

The ARC also commissions and reviews the findings of internal investigations into matters on suspected fraud, irregularity, failure of internal controls, and the infringement of any law, rule or regulation which has or is likely to have a material impact on the Company’s results of operations and/or financial position.

The ARC has reviewed the Company’s Whistle-Blowing Policy which provides the mechanism by which employees
and other persons may, in confidence, raise concerns about possible improprieties. The ARC was satisfied that arrangements are in place for the independent investigation of such improprieties and for appropriate follow-up action and resolutions.

The ARC has full access to and co-operation of Management and full discretion to invite any Director or its Senior Management to attend its meetings. The Company has an internal audit team and together with the external auditors, report their findings and recommendations independently to the ARC. During the year, the ARC reviewed the financial statements of the Company before the announcement of the financial results. The ARC met with the internal and external
auditors and discussed with them issues of concern. In the year under review, the ARC has assessed the strength of the internal audit team and confirmed that the team is adequately resourced and suitably qualified to discharge its duty.

The ARC also reviewed the nature and extent of all  non-audit services performed by the external auditors during the current financial year and is satisfied that such services have not affected their independence. It recommends the re-appointment of the external auditors. In addition, the ARC also reviewed the appointment of different auditors for its subsidiaries or significant associated companies to ensure that the appointment would not compromise the standard and effectiveness of the audit of the Company or its subsidiary or associated company.

In the opinion of the Directors, the Group complies with the Code’s guidelines on audit committees as well as Rule 716 of the SGX-ST Listing Manual.

Principles 12 and 13: Internal Controls and Internal Audit
Internal audit is an independent function within the Company. The Head of Internal Audit reports directly to the Chairman of ARC with a dotted-line relationship to the Group Managing Director of the Company for administrative matters. The Internal Audit team assists the ARC and the Board by performing regular evaluations on the Group’s internal controls, financial and accounting matters, compliance, business and risk management policies and procedures, and ensuring that internal controls are adequate to meet the Group’s requirement.

The Internal Auditor plans its audit schedules annually in consultation with, but independent of, Management. Its plans are submitted to the ARC for approval.

The Internal Auditor has met the standards as set out by nationally or internationally recognised professional bodies including the Standards for the Professional Practice of Internal Auditing set by The Institute of Internal Auditors.

The Company’s internal control structure consists of the policies and procedures established to provide reasonable assurance on the effectiveness of the Group’s system of internal controls in light of key business and financial risks affecting the operations.

The ARC reviews the proposed scope of the internal audit function and assesses its adequacy annually. The Internal
Audit team's summary of findings and recommendations are reviewed and discussed at the ARC meetings.

As part of the eligibility-to-list requirement from SGX, the Company had appointed KPMG as the Group's independent reviewer to assess the design of the internal controls relating to its business processes and procedures. The project has since been completed and a full report was submitted to the SGX on 5 November 2008, fulfilling our listing obligations to SGX.

The Board and Management of the Group attach a high importance to having a sound internal controls system and have been continuously expanding the Group’s internal audit capacities through additional staffing and/or outsourcing.

The Group has in place a formal risk management process to identify, evaluate and manage significant risks impacting the Group. The Group Risk Committee, comprising certain members of our Senior Management, reports to our ARC, on an annual basis, the Group’s strategic risks and the measures taken to address them. On a quarterly basis, all significant risks to the Group and/or properties are highlighted at the ARC meetings.