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For FY2016, the Audit Committee has met with external and internal auditors, without the presence of management.
The principal activities of the Audit Committee during FY2016 are summarised below:
a. Reviewed the half year and full year financial statements and results announcements, material announcements, and all
related disclosures to shareholders before submission to the Board for approval;
b. Reviewed the audit plan and audit report of the Company’s internal and external auditors and ensures the adequacy of the
Company’s systemof accounting controls and the co-operation given by themanagement to the external and internal auditors;
c. Reviewed the annual financial statements and also discussed with the management, the GFC and the external auditors
the significant accounting policies, judgement and estimate applied by the management in preparing the annual financial
statements. Following the review and discussions, the Audit Committee then recommended to the Board for approval of
the audited financial statements;
d. Recommended to the Board for re-appointment of RSM Chio Lim LLP as auditors of the Company for the ensuing year;
e. Undertook a review of the independence and objectivity of the external auditors through discussions with the external
auditors as well as reviewing the non-audit fees awarded to them;
f. Reviewed the nature and extent of non-audit services provided by the external auditors;
g. Reviewed the reports and findings from the internal auditors; and
h. Reviewed the Group’s interested person transactions to ensure that the transactions were carried out on normal commercial
terms and are not prejudicial to the interests of the Company or its non-controlling shareholders.
External Audit Processes
The Audit Committee manages the relationship with the Group’s external auditors, on behalf of the Board. For FY2016, the Audit
Committee carried out its annual assessment of the cost effectiveness of the audit process, together with the auditor’s approach
to audit quality and transparency. The Audit Committee concluded that the auditors demonstrated appropriate qualifications
and expertise and that the audit process was effective. Therefore, the Audit Committee recommended to the Board that RSM
Chio Lim LLP be re-appointed as the external auditor.
The Board accepted this recommendation and has proposed a resolution (set out on page 107) to the shareholders of the
Company for the re-appointment of RSM Chio Lim LLP.
Pursuant to the Rule 713 of the Catalist Rules, an audit partner may only be in charge of a maximum of five consecutive annual
audits and may then return after two years. The current RSM Chio Lim LLP’s audit partner has been responsible for the audit of
the Group since the reporting year ended 31 March 2012.
In appointing external auditors for the Group, the Company is in compliance with Rules 712 and 715 of the Catalist Rules.
Auditor Independence
In order to maintain the independence of the external auditors, the Group has specific policy which governs the conduct of
non-audit work by the external auditors. This policy prohibits the external auditors from:
• Performing services which would result in the auditing of their own work
• Participating in activities normally undertaken by the management
• Acting as advocate for the Group
• Creating a mutuality of interest between the auditors and the Group, for example being remunerated through a success
fee structure.
