6.
AUDIT AND RISK COMMITTEE
The Audit and Risk Committee (“ARC”) carried out its functions in accordance with section 201B(5)
of the Singapore Companies Act, Chapter 50, including the following:
•
Reviewed the audit plans of the internal and external auditors of the Group and the Company,
and reviewed the internal auditor’s evaluation of the adequacy of the Company’s system
of internal accounting controls and the assistance given by the Group and the Company’s
management to the external and internal auditors
•
Reviewed the quarterly and annual financial statements and the auditor’s report on the annual
financial statements of the Group and the Company before their submission to the board of
directors
•
Reviewed effectiveness of the Group and the Company’s material internal controls, including
financial, operational and compliance controls and risk management via reviews carried out
by the internal auditor
•
Met with the external auditor, other committees, and management in separate executive
sessions to discuss any matters that these groups believe should be discussed privately with
the ARC
•
Reviewed legal and regulatory matters that may have a material impact on the financial
statements, related compliance policies and programmes and any reports received from
regulators
•
Reviewed the nature and extent of non-audit services provided by the external auditor to
satisfy itself that such services do not prejudice the independence and objectivity of the
external auditor
•
Recommended to the board of directors the external auditor to be nominated, approved the
compensation of the external auditor, and reviewed the scope and results of the audit
•
Reported actions and minutes of the ARC to the board of directors with such recommendations
as the ARC considered appropriate
•
Reviewed interested person transactions in accordance with the requirements of the Singapore
Exchange Securities Trading Limited’s Listing Manual
The ARC, having reviewed all non-audit services provided by the external auditor to the Group, is
satisfied that the nature and extent of such services would not affect the independence of the external
auditor. The ARC has also conducted a review of interested person transactions.
The ARC convened four meetings during the financial year. The ARC has also met with internal and
external auditor, without the presence of the Company’s management, at least once a year.
Further details regarding the ARC are disclosed in the Report on Corporate Governance.
42
DIRECTORS’
STATEMENT
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2015
