KIM HENG OFFSHORE & MARINE HOLDINGS LIMITED
ANNUAL REPORT 2014
42
CORPORATE
GOVERNANCE REPORT
To keep abreast of the changes in accounting standards and issues which have a direct impact on the
financial statements, the ARC will seek advice from the external auditors at the ARC meetings held.
No former partner or director of the Company’s existing auditing firm is a member of the ARC.
Whistle Blowing Policy
The Company has adopted the whistle-blowing policy where staff of the Group may, in confidence, raise
concerns on any suspicion of wrongdoings which covers improprieties in matters of financial reporting,
fraudulent acts and other matters within the Group. The Management and the ARC have been vested with
the power and authority to receive, investigate and enforce appropriate follow up actions when any such
non-compliance matter is brought to its attention.
As at the date of this Report, there were no reports received through the whistle-blowing mechanism.
Internal Audit
Principle 13: The company should establish an effective internal audit function that is adequately
resourced and independent of the activities it audits.
The ARC’s responsibilities over the Group’s internal controls and risk management are complemented by
the work of the internal auditors. In FY2014, the Company has implemented an ERM framework to perform
risk assessment review on areas of significant business risks as well as the appropriate measures to control
and mitigate these risks. The ARC has approved the appointment of a qualified public accounting firm,
PwC, as the Group’s internal auditors. PwC has unrestricted direct access to all of the Group’s documents,
records, properties and personnel and reports directly to the ARC on all internal audit matters. PwC plans
their internal audit schedules in consultation with the Management.
The internal auditors carry out their function in accordance with their global internal audit services
methodology, which is aligned to the Standards for the Professional Practice of Internal Auditing set by
the Institute of Internal Auditors. The ARC ensures that the Management provides good support to the
internal auditors and provides them with access to documents, records, properties and personnel when
requested in order for the internal auditors to carry out their function accordingly. The internal auditors also
have unrestricted access to the ARC on internal audit matters. The ARC reviews and endorses the internal
audit plan and internal audit reports of the Group. Any material non-compliance or failures in the internal
audit function and recommendations for improvements are reported to the ARC. The ARC will review the
adequacy and effectiveness of the internal audit function annually.
SHAREHOLDER RIGHTS AND RESPONSIBILITIES
Shareholder Rights
Principle 14: Companies should treat all shareholders fairly and equitably, and should recognise,
protect and facilitate the exercise of shareholders’ rights, and continually review and
update such governance arrangements.
Communication with Shareholders
Principle 15: Companies should actively engage their shareholders and put in place an investor
relations policy to promote regular, effective and fair communication with shareholders.
