47
CORPORATE GOVERNANCE STATEMENT
for financial year ended 31 March 2016
2015/2016 ANNUAL REPORT
The Board notes that (i) the system of internal controls and risk management provides reasonable,
but not absolute, assurance that the Group will not be adversely affected by an event that could be
reasonably foreseen as it strives to achieve its business objectives; and (ii) 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 judgment in decision-making, human error, losses,
fraud or other irregularities.
The ARMC is given full access to, and receives full cooperation from management. The ARMC has
full discretion to invite any Director or management staff to attend its meetings. It is empowered to
investigate any matters relating to the Group’s accounting, auditing, internal controls and financial
practices that are brought to its attention.
Dealings in Company’s Securities
The Group has complied with the best practices in dealings in securities, as set out in the Listing
Manual. In this regard, the Group has issued and implemented internal guidelines, to provide
appropriate guidance to Directors and staff on dealings in the Company’s securities. All Directors and
staff of the Group are not allowed to trade in the Company’s securities during the two weeks before the
release of the Company’s first three quarters’ results and during the one month before the release of
the full year results. To facilitate compliance, quarterly reminders are issued to all Directors and staff
prior to the applicable trading black-out periods. Our Directors and staff, who are expected to observe
insider trading laws at all times, are also reminded not to deal in the Company’s securities on short-
term considerations, or whilst in possession of unpublished material price-sensitive information.
Principle 13: Internal Audit
The Group has outsourced its internal audit function to Nexia TS Risk Advisory Pte. Ltd. (“Nexia”)
which reports to the Chairman of the ARMC on audit matters. Nexia plans the internal audit program
which includes a review of the Group’s risks assessments and the effectiveness of the Group’s material
internal controls to address the identified risks. This is done in consultation with, but independent of the
management.
The ARMC is satisfied that Nexia is adequately resourced and has the appropriate standing and
expertise to undertake its activities independently and objectively.
Nexia performs detailed work to assist the ARMC in the evaluation of the Group’s operational,
compliance and legal, financial, investment and information technology controls based on an internal
audit plan approved by theARMC. Any material non-compliance or weakness noted in internal controls,
including recommendations for improvements, are reported to the ARMC. The ARMC also reviews the
effectiveness of actions taken by management in response to recommendations made by Nexia.
