SINGAPORE MYANMAR INVESTCO LIMITED
| Annual Report 2016
32
CORPORATE GOVERNANCE
REPORT
The Board ensures that the Management maintains a sound system of internal control to safeguard the shareholders’
investment and the Group’s assets.
Principle 11: Risk Management and Internal Controls
The Board is responsible for ascertaining that Management maintains a sound system of internal controls to safeguard
shareholders’ investment and the assets of the Group.
The Board and the AC note that no system of internal controls could provide absolute assurance against the occurrence of
material errors, poor judgment in decision-making, human error, losses, fraud or other irregularities.
The Company has engaged Baker Tilly Consultancy (Singapore) Pte Ltd to carry out a review of the adequacy and
effectiveness of the Group’s risk management and internal control systems to enable the Board and Management to
understand the inherent industry, financial, operational, compliance and information technology risks of the Group. The AC
reviewed the enterprise risk management report prepared by Baker Tilly TFW, the external risk assessment team engaged
to review the Group’s internal controls which address financial, operational and compliance risks. On review of the report
on the summary of the risks faced by the Group, AC will recommend to the Board any follow-up measures thereafter.
The Company’s external auditors, in the course of their annual audit, informed the AC and the Board that they are
not aware of any reason to indicate that the internal controls and risk management systems were not adequately and
effectively addressing financial, operational compliance and information technology risks which would warrant highlighting
to the Board and AC.
The Board has received assurance from the CEO and Finance Director in relation to the financial information and controls
for the year, including (i) the financial records have been properly maintained and the financial statements for the financial
year ended 31 March 2016 give a true and fair view of the Company’s operations and finances and (ii) the Company’s risk
management and internal control systems in place are effective.
Based on the internal controls established and maintained by the Company, works performed by the external auditors,
reviews performed by Management, the AC and the Board, the Board with the concurrence of the AC is of the opinion
that the Group’s internal controls and risk management systems addressing financial, operational, compliance and
information technology risks are adequate and effective in meeting the needs of the Group and provide reasonable
assurance against material financial misstatements or material loss and to safeguard the Group’s assets. This is also
supported by the assurance statement from the CEO and Finance Director.
Principle 12: Audit Committee
The AC comprises the following three members, all of whom are Independent Non-Executive Directors:
a.
Mr Wong Yen Siang (AC Chairman)
b.
Mr Wee Sung Leng
c.
Mr Fong Sing Chak Jack
All AC members have financial management knowledge and two members have accounting and related financial
management expertise. The Board is of the view that the AC members have sufficient management expertise and
experience to discharge their responsibilities.
The AC has written terms of reference clearly setting out its authority and duties.
The AC has explicit authority to investigate any matter within its terms of reference, full access to and co-operation by
Management and full discretion to invite any director or executive officer to attend its meetings, and reasonable resources
to enable it to discharge its functions properly.
In the course of FY2016, the AC meets periodically to perform the following functions:
a.
review with the external auditors the audit plan, their evaluation of the system of internal accounting controls, their
letter to Management and Management’s response;
