GOING
THE DISTANCE
EUROSPORTS
GLOBAL
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COR PORAT E
GOV E RNANC E
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 FY2016, the Executive Chairman and CEO and the GFC 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 FY2016.
The systemof 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 had engaged the professional services of BDO LLP to assist the Board to determine the Company¡¯s levels of
risk tolerance and risk policies. In FY2016, the Board has appointed a Chief Risk Officer and a Risk Management Team. The Board
will oversee themanagement in the design, implementation andmonitoring of the risk management and internal control systems.
AUD I T COMMI T TEE
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 of whom are Non-Executive
Independent Directors. Mr Ng Tiak Soon is the Chairman of the Audit Committee.
Themembers of the Audit Committee possessmany years of experience in accounting, finance, banking, business andmanagement.
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;
