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HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2014
CORPORATE
GOVERNANCE
Under the whistle-blowing policy, all concerns expressed anonymously will be investigated although
consideration will be given to the seriousness of the issue raised, the credibility of the concern and
the likelihood of confirming the allegation from attributable sources. In addition, every effort will be
made to protect the complainant’s identity, if so requested, so long as it is compatible with a proper
investigation.
Once a complaint has been made, the action taken will depend on the nature of the concern and
initial inquiries will be made to determine whether an investigation is appropriate, and the form it
should take.
The ARC will maintain a record of concerns raised under this policy and the outcomes, and will report
as necessary to the Board.
3.4 Internal Audit
Principle 13: The Company should establish an internal audit function that is adequately
resourced and independent of the activities it audits.
The Group has outsourced its internal audit function to Deloitte & Touche Enterprise Risk Services Pte
Ltd. The aim of the internal audit function is to promote internal control in the Group and to monitor
the performance and effective application of internal audit procedures. It supports the directors in
assessing key internal controls through a structured review programme. The internal audit function
is expected to meet the standard set by internationally recognised professional bodies including the
Standards for the Professional Practice of Internal Auditing set by The Institute of Internal Auditors.
The internal audit function reports functionally to the Chairman of the ARC and administratively to
the Executive Director. The ARC ensures that the internal audit function has adequate resources and
has appropriate standing within the Group. The ARC, on an annual basis, assesses the effectiveness
of the internal auditors by examining:
•
the scope of the internal auditors’ work;
•
the quality of the reports;
•
the relationship with the external auditors; and
•
the independence of the areas reviewed.
