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The AC has the authority to
investigate any activity it deems
appropriate within its terms of
reference and is authorised to
obtain independent professional
advice. It has full access to and
cooperation of the Management
and reasonable resources to
enable it to discharge its duties
properly. It reviews the assistance
given by the Company’s officers
to the external and internal
auditors. The AC has unrestricted
access to the external and
internal auditors. The AC had met
with the Company’s external and
internal auditors once without
the presence of Management
during FY2018 to review any
matter that might be raised
privately. It also has full discretion
to invite any Director, key
management personnel or any
other person to attend
its meetings.
During the year under review,
the aggregate amount of fees
payable to the external auditors,
Ernst & Young LLP (“EY”) for audit
and non-audit fees amounted
to S$182,000 and S$61,000
respectively. The AC, having
reviewed the scope and value of
non-audit services provided to
the Group by EY, is satisfied that
the nature and extent of such
services has not prejudiced and
effect their independence and
objectivity.
In reviewing the nomination
of EY for re-appointment as
the Company’s auditor for
the financial year ending 31
December 2019, the AC had
considered the adequacy and
appropriate resources and
experience of the firm and the
assigned audit engagement
partner, other audit engagements
and the number and experience
of the supervisory and
professional staff assigned to the
Group’s audit.
EY has confirmed that they are
registered with the Accounting
and Corporate Regulatory
Authority. The Company has
complied with Rule 712 and 715
of the Listing Manual of the SGX-
ST in relation to the appointment
of auditors. Accordingly, the AC
has recommended EY for re-
appointment as statutory auditor
at the forthcoming AGM.
The AC has reviewed the
key audit matters disclosed
in the independent external
auditor’s report and is of the
view that there is no material
inconsistency between the audit
procedures adopted by the
independent external auditor and
Management’s assessment.
The Company has a Code of
Conduct and Gift Policy which
has been adopted since 2014
to regulate the ethical conduct
of its employees. The Code
of Conduct also extends to
Directors of the Company and all
consultants and agents engaged
by the Group for the purpose of
representing the Group in certain
areas of works.
Whistle-blowing Policy
The Company has in place
a Whistle-blowing Policy to
promote the highest standard
of work ethics and to eliminate
unethical, illegal, corrupt and
wasteful behaviour and acts. The
policy provides an independent
feedback channel through
which matters of concern about
possible improprieties in matters
of financial reporting, fraudulent
behaviour and other matters
may be raised by employees and
any other persons directly to
any AC member in confidence
and in good faith without fear of
reprisals.
The Policy establishes
the processes by which
whistleblowing complaints are
handled and the confidentiality
and identity of the whistleblower
is maintained and protected.
The AC ensures that independent
investigations and any
appropriate follow up actions are
carried out. Details of this policy
have been disseminated and
made available to all employees
of the Group. To date, there were
no reports received through the
whistle blowing mechanism.
Principle 13:
Internal Audit
The Company’s internal audit
function is outsourced and
its current internal auditor
is PricewaterhouseCoopers
(“PwC”). The Board has approved
the recommendation of the AC
to re-engage PwC as internal
auditor (“IA”) of the Company.
The IA has access to all records
including access to AC. The IA’s
primary line of reporting would
be to the AC Chairman and
administratively to the CFO.
The IA function is independent
of the activities it audits. The IA,
PwC, is a corporate member of
the Institute of Internal Auditors
Singapore with professionals
with relevant qualifications and
experience. The audit work is
carried out according to the
standards set by internationally
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