30
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2014
CORPORATE
GOVERNANCE
Based on the internal controls established and maintained by the Group, works performed by the
internal and external auditors and reviews performed, the Board with concurrence of the ARC are
of the opinion that the Group’s internal controls, addressing financial, operational, compliance and
information technology controls and risk management systems were adequate as at 31 December
2014.
The Board has received assurance from the Executive Director and the Financial Controller (a) that
the financial records have been properly maintained and the financial statements for the financial year
ended 31 December 2014 give a true and fair view of the Company’s operations and finances; and
(b) of the effectiveness of the Company’s risk management and internal control systems.
3.2 Audit & Risk Committee
Principle 12: The Board should establish an Audit Committee with written terms of reference
which clearly set out its authority and duties.
The ARC comprises 3 members, all of whom including the Chairman are non-executive and
independent directors. The ARC’s members are:–
Mr Ng Weng Sui Harry (Chairman and Independent Director)
Mr Kesavan Nair (Independent Director)
Mr Low See Ching (Independent Director)
All 3 members have recent and relevant accounting or related financial management expertise or
experience.
The terms of reference of the ARC were revised to include risk management. It was approved and
adopted by the ARC on 2 November 2012 and approved by the Board on 12 November 2012.
The ARC’s main objective is to assist the Board in fulfilling its fiduciary responsibilities relating to
internal controls, overseeing the external audit process, reviewing the financial information to be
disclosed to the public and ensuring that arrangements are in place for the independent investigation
and follow up of reports by staff of improprieties in financial reporting and other matters. To achieve
this, the ARC ensures that its members have the appropriate qualifications to provide independent,
objective and effective oversight.
Specifically, the ARC meets periodically to perform the following functions:
•
reviewing the audit plans of the external and internal auditors;
•
reviewing the external and internal auditors’ reports;
•
reviewing the co-operation given by the Company’s officers to the external and internal
auditors;
•
reviewing the adequacy of the internal audit function;
