TUNG LOK RESTAURANTS (2000) LTD / Annual Report
2016
27
Corporate Governance Report
(9)
review arrangements by which staff of the Group may, in confidence, raise concerns
about possible improprieties in matters of financial report or other matters and ensure
that arrangements are in place for independent investigation of the same and for
appropriate follow up actions;
(10)
oversee the Company’s risk management systems, practices and procedures to
ensure effectiveness of risk identification and management, and compliance with
internal guidelines and external requirements; and
(11) review the adequacy and effectiveness of the Group’s material internal controls
(compliance, financial, operational and information technology) and risk management
policies and systems, as well as the effectiveness of the Group’s internal audit
function.
Minutes of the ARC meetings are submitted to the Board for its information and review.
12.5 ARC to meet internal
and external auditors,
without presence of
Management, at least
annually
For FY16, the ARC met once each with the external auditors, Messrs Ernst & Young LLP
(“
EY
”) and independent internal auditors, Foo Kon Tan Advisory Services Pte Ltd, without the
presence of the Management for the purpose of facilitating discussion of the responses by
Management on audit matters. The ARC has reviewed the findings of the auditors and the
assistance given to the auditors by Management.
12.6 ARC to review
independence of external
auditors annually
The ARC has received the requisite information from the external auditors evidencing the
latter’s independence.
The ARC has noted that there are no non-audit related work carried out by the external
auditors during FY16 and is satisfied with the independence and objectivity of the external
auditors.
The audit fees paid to the external auditors of the Company for FY16 was approximately
S$201,000. There was no non-audit fee paid to the external auditors.
The ARC is satisfied with the independence and objectivity of EY and has recommended to
the Board that EY be nominated for re-appointment as external auditors at the forthcoming
AGM.
The Group has complied with Rules 712 and 715 of the Rules of Catalist in relation to the
external auditors.
12.7 ARC to review
arrangements for staff
to raise concerns about
possible improprieties to
ARC
The Group has in place, a whistle-blowing policy where employees of the Group and any
other persons may, in confidence, raise concerns about possible improprieties. Such a policy
serves to encourage and provide a channel for staff to report in good faith and without fear
of reprisals, concerns about possible improprieties in financial reporting or other matters to
the Chairman of ARC, Executive Chairman or the Head of Human Resource. It has a well-
defined process which ensures independent investigation of issues/concerns raised and
appropriate follow-up action to be taken.
Details of the whistle-blowing policies and arrangements have been made available to all
employees.
The public, our customers and other stakeholders can also report possible improprieties
or provide other feedbacks through the Company’s website at
. The
Management reviews each correspondence received and escalates to the Executive
Chairman or Chairman of ARC on any instances of potential improprieties. Independent
investigations will be conducted and follow-up actions taken, if warranted.
