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The AC has reviewed the non-audit services provided to the Group by the external auditors, Ernst & Young LLP for FY 2013,
and is of the opinion that the provision of such non-audit services does not affect the independence and objectivity of the
external auditors.Accordingly, theAChas recommended to theBoard thenominationof Ernst&Young LLP for re-appointment
as external auditors at the forthcoming AGM. The fees payable to the external auditors in respect of audit and non-audit
services are set out in page 105 of this Annual Report.
TheCompany confirms that it has compliedwith Rules 712 and 715 of the ListingManual issued by SGX-ST in relation to the
external auditors.
During 2013, the ACmet with the internal and external auditors without the presence ofManagement to review anymatter
thatmight be raised privately.
TheCompany has aCode of Conduct (“CoC”) andGift Policy to regulate the ethical conduct of its employees. TheCoC also
extends to Directors of the Company and all consultants and agents engaged by the Group for the purpose of representing
theGroup in certain areas of works.
The Company has in place a Whistle-blowing Policy. This policy provides an independent feedback channel through which
mattersof concernabout possible improprieties inmattersof financial reportingandothermattersmaybe raisedbyemployees
directly to any AC member in confidence and in good faith without fear of reprisals. The AC ensures that independent
investigations and any appropriate follow up actions are carried out. Details of this policy have been disseminated andmade
available to all employees of theGroup. Todate, therewere no reports received through thewhistle blowingmechanism.
Principle 13: Internal Audit
TheGroup outsources its internal audit function to RSM Ethos Pte Ltd, a firm specialising in governance, risk and consulting.
The AC is satisfied that the internal auditors have met the standards set by internationally recognised professional bodies
including the Standards for the Professional Practice of Internal Auditingof the Institute of Internal Auditors.
The internal auditors report directly to the AC. The AC reviews the internal audit reports and follow-up actions and the
effectiveness of the Group’s internal audit function. The AC also reviews and approves the internal audit plan. The AC is of
the view that the internal audit function is adequately resourced to perform its functions and has, to the best of its ability,
maintained its independence from the activities that it audits.
SHAREHOLDERSRIGHTSANDRESPONSIBILITIES
Principle 14: Shareholder Rights
The Group recognises the importance of maintaining transparency and accountability to its shareholders. The Board ensures
that all the Company’s shareholders are treated fairly and equitably and the rights of all investors, including non-controlling
shareholders are protected.
Shareholders are informed of any changes in the Group’s business that are likely to materially affect the value of the
Group’s shares.
