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E U R O S P O R T S G L O B A L L I M I T E D
The Company maintains a system of internal controls for all companies within the Group, but recognises that no internal
control system will preclude all errors and irregularities. The system is designed to manage rather than to eliminate the risk
of failure to achieve business objectives. The controls are to provide reasonable, but not absolute assurance to safeguard
shareholders’ investments and the Group’s assets.
For FY2015, the Executive Chairman and CEO and the CFO have provided their confirmation that the financial records have
been properly maintained and the financial statements give a true and fair view of the Company’s operations and finances; and
regarding the effectiveness of the Company’s risk management and internal control systems.
Based on the internal controls established and maintained by the Group, work performed by the internal and external auditors
and reviews performed by the Management, various Board Committees and/or the Board, the Board, with the concurrence of
the Audit Committee, is of the opinion that there are adequate and effective risk management systems and internal controls
in place to address the risks relating to financial, operational, compliance and information technology controls for FY2015.
The system of internal controls and risk management established by the Company provides reasonable but no absolute
assurance that the Company will not be adversely affected by any event that can be reasonably foreseen as it strives to
achieve its business objectives. The Company is also consistently improving the Company’s internal controls and to adopt the
recommendations which have been highlighted by the internal and external auditors to further improve on the Company’s
internal controls.
In FY2015, the Board has engaged the professional services of BDO LLP to assist the Board to determine the Company’s
levels of risk tolerance and risk policies. The Board will take in the recommendation from BDO LLP to establish a separate Risk
Management Team and appoint a Chief Risk Officer. The Board will oversee the Management in the design, implementation
and monitoring of the risk management and internal control systems.
aud i t Commi t t e e
Principle 12: The board should establish an audit Committee with written terms of reference which clearly set out its
authority and duties.
The Audit Committee comprises Mr Ng Tiak Soon, Mr Lim Kim Quee, and Mr Tan Siok Sing, all whom are Non-Executive
Independent Directors. Mr Ng Tiak Soon is the Chairman of the Audit Committee.
The members of the Audit Committee possess many years of experience in accounting, finance, banking, business and
management. The Board considers that the members of the Audit Committee are appropriately qualified to discharge the
responsibilities of the Audit Committee.
The members of the Audit Committee carried out their duties in accordance with the terms of reference which include,
amongst others, the following:
(i)
To oversee and appraise the quality of the Company’s internal audit function and external auditors. In pursuance of this
function, the duties of the Audit Committee shall include, amongst others, the following:
(a)
Review the scope and results of the external audit and the independence and objectivity of the external auditors;
(b)
Review the internal and external audit plans and the audit reports;
(c)
Review the internal control and procedures;
(d)
Review risk management policies and systems and potential business risk management process;
(e)
Review the co-operation given by management to the internal and external auditors; and
(f)
Recommend to the Board on the proposals to the shareholders on the appointment, re-appointment and removal
of the external auditors and approve the remuneration and terms of engagement of the external auditors.
CorPoraTE
goVErnanCE rEPorT
