CORPORATE GOVERNANCE REPORT
The Board has received assurance from the CEO and the Chief Financial Officer (a) that the financial records have been
properly maintained and the financial statements for FY2016 give a true and fair view of the Group’s operations and
finances; and (b) that the Group has put in place and will continue to maintain a reasonably adequate and effective
system of risk management and internal controls.
Based on the internal controls established and maintained by the Group, work performed by the internal auditor,
and reviews performed by the Management, the Board and its Committees, the Board, with the concurrence of the
AC, is of the opinion that the risk management and internal control systems maintained by the Group, addressing
the financial, operational, compliance and information technology risks of the Group are adequate and effective
as at 30 June 2016. The Board and the AC note that all internal control systems contain inherent limitations and
no system of risk management and internal controls could provide absolute assurance against the occurrence of
material errors, poor judgment in decision-making, human errors, losses, fraud or other irregularities. The Board
will continue its risk assessment process, which is an on-going process, with a view to improving the Company’s
internal control system.
Audit Committee
Principle 12:
The board should establish an audit committee with written terms of reference which clearly set out its
authority and duties.
The AC comprises three Independent Directors, namely Mr Tan Eng Ann, Mr Soh Chun Bin and Ms Ng Kheng Choo.
The Chairman of the AC is Mr Tan Eng Ann. The AC is regulated by a set of written terms of reference which are in line
with the Code. The Board is of the view that the AC has sufficient financial and management expertise and experience
amongst its members to discharge the AC’s responsibilities.
The AC will meet periodically to discuss, inter alia, the following:
(a)
to review the audit plans of the external auditor and internal auditor, including the results of the internal auditor’s
review and evaluation of the system of internal controls of the Group;
(b)
to review the annual consolidated financial statements and the external auditor’s report on those financial
statements, and discuss any significant adjustments, major risk areas, changes in accounting policies, compliance
with Singapore Financial Reporting Standards, concerns and issues arising from their audits including any matters
which the external auditor may wish to discuss in the absence of the Management, where necessary, before
submission to the Board for approval;
(c)
to review the half-yearly consolidated financial statements comprising the statement of comprehensive income,
the statement of financial position and such other information required by the Catalist Rules before submission
to the Board for approval;
(d)
to review and discuss with the external auditor and internal auditor, any suspected fraud, irregularity or
infringement of any relevant laws, rules and regulations, which has or is likely to have a material impact on the
Group’s operating results or financial position and the Management’s response;
(e)
to review the co-operation given by the Management to the external auditor;
(f)
to consider the appointment or re-appointment of the external auditor;
(g)
to review and ratify any interested person transactions falling within the scope of Chapter 9 of the Catalist Rules;
(h)
to review any potential conflicts of interests (if any);
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ISOTEAM LTD.
ANNUAL REPORT 2016
