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COSCO Corporation (Singapore) Limited
The Board is satisfied with the composition of the AC and the AC members are appropriately qualified to discharge their
responsibilities. On 21 February 2014, Mr Tom Yee Lat Shing was appointed as the Lead Independent Director of the Company,
in line with the Board’s policy of adopting a high standards governance in accordance with the CG Code 2012. All members of
the AC have recent and relevant accounting or related financial management expertise or experience, as the Board interprets
such qualification in its business judgment. By briefings given by the External Auditors, the AC and Management are always kept
abreast of changes to accounting standards and issues which have a direct impact on financial statements. AC members will
also attend trainings regarding the new accounting standards as and when such need arises.
The AC performs the following functions:
a) reviews with the external auditors, their audit plan, evaluation of the accounting controls, audit reports and any matters
which the external auditors wish to discuss;
b) reviews with the internal auditors, their audit plan, the adequacy of the internal audit procedures and their evaluation
of the effectiveness of the overall internal control systems, including financial, operational, compliance and information
technology controls and risk management systems;
c) reviews the quarterly and annual financial statements, including announcements to shareholders and the SGX-ST prior
to submission to the Board so as to ensure the integrity of the Company’s financial statements;
d) reviews any significant findings and recommendations of the external and internal auditors and related management
response and assistance given by the management to auditors;
e) reviews interested person transactions to ensure that internal control procedures approved by the shareholders are
adhered to;
f ) conducts annual review of the independence and objectivity of the external auditors, including the volume of non-audit
services provided by the external auditors, to satisfy itself that the nature and extent of such services will not prejudice
the independence and objectivity of the external auditors before confirming their re-nomination; and
g) reviews the qualifications of the candidate(s) for chief financial officer before recommending such appointment to the
Board.
The AC and the Board of Directors, with the assistance of internal and external auditors, reviews the effectiveness of the key
internal controls, including financial, operational, compliance, information technology controls and risk management systems on
an on-going basis. There are formal procedures in place for both the internal and external auditors to report independently their
findings and recommendations to the AC.
The AC has full access to, and cooperation from the Management including internal and external auditors, and has full discretion
to invite any Director or executive officer to attend its meetings. The AC has also expressed power to investigate any matter
brought to its attention, within its terms of reference, with the power to retain professional advice at the Company’s expense.
The Group recognises the importance of the internal audit function which, being independent of Management is one of the
principal means by which the AC is able to carry out its responsibilities effectively. The Company has appointed Messrs Deloitte
& Touche Enterprise Risk Services Pte. Ltd. as the outsourced internal auditors of the Group.
The internal auditors plan their internal audit schedules in consultation with the Management and submit their respective plans
to the AC for approval. The Internal Auditors report directly to the AC and the AC will then escalate the IA report to the Board as
part of their oversight role.
The AC conducts regular meetings scheduled on a quarterly basis. Apart from the quarterly meetings, the AC meets with the
external and internal auditors, without the presence of the management at least once a year. Ad-hoc meetings may be carried
out from time to time, as circumstances require. The AC held six (6) meetings during the financial year.
CORPORATE
GOVERNANCE
Corporate Gover nance and Transparency