TUNG LOK RESTAURANTS (2000) LTD / Annual Report
2016
115
LETTER TO SHAREHOLDERS
The Audit and Risk Committee will review, on a half-yearly basis, whether the fees paid to the TYJ Group
and its associated companies (other than T&T) is fair and reasonable and commensurate with the amount
of services provided to T&T.
(ii)
In relation to the receipt of services such as laboratory test services for food products, and logistics
services for food storage and delivery, two (2) comparable quotations shall be obtained contemporaneously
from unrelated third parties in respect of the provision of similar services to T&T. Prior to entering into such
a transaction with the TYJ Group and its Associated Companies, T&T will take into account all pertinent
factors (other than price) including, but not limited to, the quality of service, track record of the counter-
parties, timeliness, convenience, reliability, responsiveness and confidentiality (if applicable).
In the event that two (2) quotations from unrelated third parties are not available, an executive director
of the Company who is independent of the Interested Persons may at his discretion, determine the
reasonableness of the price offered by the TYJ Group and its Associated Companies (other than T&T),
taking into account factors including, but not limited to, the other potential costs which may be incurred
by T&T, historical prices offered by the TYJ Group and its Associated Companies (other than T&T),
quality of service, track record of counter-parties, convenience, timeliness, reliability, responsiveness and
confidentiality (if applicable).
4.7 Threshold Limits
In addition to the review procedures, the following approval procedures will be implemented to supplement existing
internal control procedures for the IPTs to ensure that such transactions are undertaken on an arm’s length basis and on
normal commercial terms:
(a)
Threshold for individual IPTs
(i)
Transactions between T&T (as an Entity at Risk) and the Interested Persons (excluding T&T):
(1)
Where an individual IPT is in excess of S$250,000, such transaction will require the prior approval
of the Audit and Risk Committee; and
(2)
Where an individual IPT is equal to or below S$250,000, such transaction will be approved by any
executive director of the Company who is independent of the Interested Persons.
(ii)
Transactions between the Group and its Associated Companies (other than T&T) with the Interested
Persons (including T&T):
(1)
Where an individual IPT is in excess of S$150,000, such transaction will require the prior approval
of the Audit and Risk Committee;
(2)
Where an individual IPT is in excess of S$50,000 but equal to or below S$150,000, such
transaction will be approved by the vice president of the Company’s purchasing department, who
is independent of the Interested Persons; and
(3)
Where an individual IPT is equal to or below S$50,000, such transaction will be approved by
the departmental manager or outlet manager (as the case may be), who is independent of the
Interested Persons.
