REPORT ON CORPORATE GOVERNANCE
In appointing the auditing firms for the Company, subsidiaries and significant associated companies, the Group has complied
with Listing Rules 712, 715, 716 and 717.
In particular, the Audit and Risk Committee has undertaken a review of all non-audit services that are provided by the external
auditors and is satisfied that the provision of such services has not affected the independence of the external auditors. The fees
that are charged to the Group by the external auditors are as follows:
2014
2013
$’000
$’000
Audit fees:
- Auditors of the Company
430
564
- Other auditors
191
156
Non-audit fees:
- Auditors of the Company
−
−
- Other auditors
67
35
Total Audit and non-audit fees
688
755
The number of Committee meetings held during the financial year and the attendance of the individual members of the Audit
and Risk Committee at such meetings is set out in the Report on Corporate Governance under the section headed The Board’s
Conduct of its Affairs.
12. Internal Controls and Risk Management
The internal auditor has conducted independent reviews of the effectiveness of theCompany’smaterial internal controls, including
financial, operational and compliance controls, information technology and risk management, at least annually. Besides, the
external auditors have also performed a review of the internal financial systems and operating controls for the financial statements
attestation purpose. Such reviews have been reported to the Audit and Risk Committee.
In addition, the Audit and Risk Committee has reviewed the adequacy of the Company’s internal controls including financial,
operational and compliance controls, information technology and risk management in the Company. The Board is satisfied that
there are adequate and effective internal controls in the Company.
Pursuant to the requirement as stipulated under Rule 1207(10), the Board of Directors and the Audit and Risk Committee have
reviewed the adequacy of the Group’s internal controls to address the Group’s financial, operational and compliance risks. Based
on the reviews conducted, the Board of Directors, with the concurrence of the Audit and Risk Committee, are of the opinion that
the system of internal controls in place are adequate and effective to address the Group’s financial, operational, compliance and
information technology risks of the current scope of the Group’s business operations.
The Board also receives quarterly written assurances from the Group Managing Director and the Chief Financial Officer on the
state of the Group’s financial records, risk management and internal control systems.
Whistle-Blowing Policy
TheGroup has in place aWhistle-Blowing Policy. This Policy provides an independent feedback channel through whichmatters of
concern about possible improprieties in matters of financial reporting or other matters may be raised by employees and external
parties in confidence and in good faith, without fear of reprisal. Details of this policy have been disseminated and made available
to all employees of the Company. All matters which are raised are then independently investigated and appropriate actions taken.
The Audit and Risk Committee ensures that independent investigations and any appropriate follow-up actions are carried out.
41
ANNUAL REPORT 2014
