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Straco Corporation Limited • Annual Report 2014
A Whistle-Blowing policy is also in place to provide an avenue through which employees may report or communicate, in good faith and in confidence, any
concerns relating to financial and other matters, so that independent investigation of such matters can be conducted and appropriate follow-up action taken.
The Audit Committee Chairman is in charge of managing this specific area. The Whistle-Blowing Policy has been reviewed by the Audit Committee to ensure
that it has been properly implemented.
The Whistleblowing procedure is intended to be used for serious and sensitive issues. Serious concerns relating to financial reporting, unethical or illegal conduct
should be reported to the Audit Committee Chairman via a designated email. The action to be taken will depend on the nature of the concern. Initial inquiries
will be made by the Chairman of the Audit Committee to determine whether an investigation is appropriate, and the form that it should take. Some concerns
may be resolved by agreed action without the need for investigation. If investigation is necessary, the Audit Committee will direct an independent investigation
to be conducted based on the complaint received. The Board of Directors will receive a report stating the complaint received and findings of the independent
investigation, as well as a follow-up report on actions taken by the Audit Committee. The Company will update the complainant of the actions taken in respect
of the complaint in two weeks. Subject to any legal constraint the complainant will be notified about the outcome of any investigations.
The Company shall maintain the confidentiality of the whistle-blower(s) to the fullest extent reasonably practicable within the legitimate needs of the law and
any ensuing evaluation or investigation. Complainant(s) who make a report in good faith will be protected from reprisals, victimization or harassment.
The Company regularly reviews and improves its business and operational activities to identify areas of significant business risks as well as take appropriate
measures to control and mitigate these risks. The Company reviews all significant control policies and procedures and highlights all significant matters to the
Audit Committee and the Board. The risk issues are highlighted on pages 81 to 86 under note 25 to the financial statements.
The external auditors, in the course of conducting their annual audit procedures on the statutory financial statements, also reviewed the Group’s significant
internal financial controls to the extent of their scope as laid out in their audit plan. Any material non-compliance and internal financial control weaknesses
noted by the auditors are reported to the Audit Committee together with the auditors’ recommendations. The management would then take appropriate
actions to rectify the weaknesses highlighted.
The Audit Committee, in the course of their review of the reports presented by the internal auditors and external auditors, also reviewed the effectiveness of
the Group’s system of internal controls, including the financial, operational, compliance and information technology controls, and risk management systems.
At the financial year-end, the CEO and Chief Financial Officer have provided a letter of assurance on the integrity of the financial records/statements, as well
as the effectiveness of the Company’s risk management and internal control systems.
Such assurance includes that:
(a)
internal controls were established and maintained;
(b)
material information relating to the Company was disclosed on a timely basis for the purposes of preparing financial statements; and
(c)
the company’s internal controls were effective as at the end of the financial year.
The Board notes that the system of internal controls provides reasonable, but not absolute, assurance that the Group will not be affected by any event that
could be reasonably foreseen as it strives to achieve its business objectives.
CORPORATE GOVERNANCE
