CORPORATE GOVERNANCE REPORT
33
In view of confidentiality of remuneration matters, the Board is of the opinion that it is in the best interests of the Group not to
disclose the exact remuneration of the non-Executive Directors, CEO, Executive Director and the Key Management Personnel in this
Annual Report.
ACCOUNTABILITY AND AUDIT
Accountability
Principle 10:
The Board should present a balanced and understandable assessment of the Company’s performance, position
and prospects.
In presenting the annual financial statements and quarterly announcements, it is the aim of the Board to provide the shareholders with
a detailed analysis, explanation and assessment of the Group’s financial position and prospects.
The Management currently provides the Board with a continual flow of relevant information on a timely basis in order that it may
effectively discharge its duties. On a monthly basis, Board members are provided with up-to-date financial reports and other information
on the Group’s performance for effective decision making.
In line with the SGX-ST Listing rules, the Board issued negative assurance statements in its quarterly financial results announcement,
confirming to the best of its knowledge, that nothing has come to the attention of the Board which might render the financial statements
false or misleading in any material aspect.
RISK MANAGEMENT AND INTERNAL CONTROLS
Principle 11
:
The Board is responsible for the governance of risk. The Board should ensure that Management maintains a sound
system of risk management and internal controls to safeguard shareholders’ interests and the company’s assets,
and should determine the nature and extent of the significant risks which the Board is willing to take in achieving the
strategic objectives.
The Board acknowledges that it is responsible for the overall internal control framework, but recognises that no cost effective internal
control system will preclude all errors and irregularities, as a system is designed to manage rather than eliminate the risk of failure to
achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.
In assessing the effectiveness of internal controls, the
AC
, through the assistance of its internal and external auditors, ensures primary
key objectives are met, material assets safeguarded and financial information prepared in compliance with applicable internal policies,
laws and regulations.
An Enterprise Risk Management (ERM) Policy is in place to formalize the reporting, assessment, treating and monitoring of each
significant risk that the Group faces in achieving its business objectives. Such risks, including mitigating actions, are reported to
the Board through the Audit Committee on an-annual basis, and are followed-up by the in-house internal audit team as part of its
annual audit plan. Further in support of the ERM Policy, a Control Self Assessment (CSA) framework has also been implemented
for Management to self-assess internal controls in accordance with Group requirements and specifically address any significant
weaknesses and/or risks identified. The
AC
, on behalf of the Board, has also reviewed the effectiveness of the Group’s system of
internal controls in the light of key business and financial risks affecting the operations.
For the financial year under review, the CEO and the CFO have provided assurance to the Board that the Group’s risk management
and internal control systems in place is adequate and effective in addressing the material risks in the Group in its current business
environment including material financial, operational, compliance and information technology risk and the financial records have been
properly maintained and the financial statements give a true and fair view of the Group’s business operations and finances.
