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Food Empire Holdings Limited Annual Report 2014
CORPORATE GOVERNANCE
I)
RISK MANAGEMENT AND INTERNAL CONTROLS (cont’d)
- Principle 11: Sound systems of risk management and internal controls (cont’d)
The Board notes that system of internal controls and risk management established by the Company provides
reasonable, but not absolute, assurance that the Company will not be adversely affected by any event that can be
reasonably foreseen as it strives to achieve its business objectives. However, the Board also notes that no system
of internal controls and risk management can provide absolute assurance in this regard, or absolute assurance
against the occurrence of material errors, poor judgement in decision-making, human error, losses, fraud or
other irregularities.
J)
AUDIT COMMITTEE
- Principle 12: Establishment of AC with written terms of reference
The AC comprises:-
Mr. Ong Kian Min
(Chairman)
Mr. Lew Syn Pau
Mr. Boon Yoon Chiang
Mdm. Tan Guek Ming
All four members of the AC are Non-executive Directors and the majority, including the Chairman, are independent.
The Chairman of the AC, Mr. Ong Kian Min, is a lawyer and Director of several public and private companies. The
other three members of the AC have many years of management and financial experience. The Directors are of
the view that the members of the AC have sufficient financial management expertise and experience to discharge
the AC’s duties and responsibilities.
During the year, the AC carried out its function in accordance with its written terms of reference.
The AC meets with management and/or the auditors of the Group on a regular basis to discuss and review:-
a)
the audit plans of the external auditors of the Group, the results of their examination and evaluation of the
Group’s systems of internal accounting controls, their independence and the non-audit services provided
by them;
b)
risk or exposure that exists and the steps management has taken to minimise these risks to the Group;
c)
the Group’s quarterly financial results for submission to the Board;
d)
the assistance given by the Group’s officers to the external auditors;
e)
the Group’s interested person transactions in accordance with the requirements of the SGX-ST Listing
Manual;
f)
the financial statements of the Company and the consolidated financial statements of the Group before
their submission to the Board of Directors and the external auditors’ report on those financial statements;
