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Straco Corporation Limited • Annual Report 2014
In appointing our auditors for the Company and subsidiaries, we have complied with the requirements of Rules 712 and 715 of the SGX Listing Manual.
Pursuant to Rule 1207 (6)(a), the fees payable to auditors is set out in Note 19 on page 77 of this Annual Report.
During the financial year, the Audit Committee has reviewed with the Group CFO and the external auditors on changes in accounting standards and issues
which are relevant to the Group and have a direct impact on the Group’s financial statements.
Principle 13: Internal Audit
The Audit Committee’s responsibility in overseeing that the Company’s risk management system and internal controls are adequate will be complemented by
the outsourced internal auditor, Ernst & Young Advisory Pte Ltd, whom the Company has appointed. The internal auditor had adopted the Standards for the
Professional Practice of Internal Auditing set by The Institute of Internal Auditors.
The internal auditor will report directly to the Chairman of the Audit Committee on audit matters. The internal auditor will plan its audit work in consultation
with, but independently of, the management, and its yearly plan will be submitted to the Audit Committee for approval at the beginning of the year. The
internal auditor will report to the Audit Committee regarding its findings. The Audit Committee will meet the internal auditor at least once a year, without
the presence of the management to review the assistance given by the Company’s officers to the internal auditor. The internal auditor has full access to all
the Company’s documents, records, properties and personnel including access to the Audit Committee.
Based on the external and internal auditors’ findings, the Board with the concurrence of the Audit Committee is of the opinion that the Group’s internal
controls addressing financial, operational and compliance risks are adequate in meeting the needs of the Group and provide reasonable (though not absolute)
assurance against material financial misstatements and loss, and safeguard the Group’s assets. The internal controls ensure the Group’s maintenance of
proper accounting records, compliance with applicable regulations and best practices, and timely identification and containment of financial, operational and
compliance risks. The Audit Committee is also satisfied that there were no material internal control deficiencies identified.
SHAREHOLDER RIGHTS AND RESPONSIBILITIES
Principle 14: Shareholder Rights
Principle 15: Communication with Shareholders
Principle 16: Conduct of Shareholder Meetings
We believe in regular and timely communication with shareholders as part of the Group’s effort to help our shareholders understand our business better.
In line with the continuous obligations of the Company pursuant to the Listing Manual and the Companies Act, the Board’s policy is that all shareholders
should be equally and timely informed of all major developments that impact on the Company or the Group. It is also the Board’s policy that all corporate
news, strategies and announcements are promptly disseminated through SGXNET, press releases as well as various media. The Company does not practice
selective disclosure.
Shareholders are encouraged to attend the AGM to ensure a high level of accountability and to stay informed of the Company’s strategy and goals. Notice
of the AGM is dispatched to shareholders, together with explanatory notes or a circular on items of special business (if necessary), at least 14 days before the
meeting. The Board welcomes questions from shareholders who have an opportunity to raise issues either formally or informally before or at the AGM.
CORPORATE GOVERNANCE
