Navigating Challenges • EMBRACING DIVERSITY | ANNUAL REPORT 2015
NOTICE OF ANNUAL GENERAL MEETING
statisTICS OF SHAREHOLDINGs
FINANCIAL CONteNts
CORPORATE GOVERNANCE REPORT
37
Corporate Governance Report
important component of the compensation plan and are designed primarily to reward and retain employees whose
services are vital to the growth and performance of the Company and the Group. As at the date of this Report, no
awards or options have been granted under the Kim Heng PSP and Kim Heng ESOS respectively.
ACCOUNTABILITY AND AUDIT
Accountability
Principle 10: The Board should present a balanced and understandable assessment of the company’s
performance, position and prospects.
Risk Management and Internal Controls
Principle 11: The Board is responsible for the governance of risk. The Board should ensure that Management
maintains a sound system of risk management and internal controls to safeguard shareholders’
interests and the company’s assets, and should determine the nature and extent of the significant
risks which the Board is willing to take in achieving its strategic objectives.
The Board recognises the importance of providing accurate and relevant information on a timely basis. In this respect,
the ARC reviews all financial statements and recommends them to the Board for approval. In addition, the ARC
ensures that the Company maintains a sound system of internal controls to safeguard its shareholder’s investments
and the Group’s assets as well as to manage potential risks.
In discharging its responsibility of providing accurate relevant information on a timely basis to shareholders in
compliance with statutory and regulatory requirements, the Board strives to ensure timely release of the Group’s
financial results and that the results provide a balanced and understandable assessment of the Group’s performance,
position and prospects.
The Board takes steps to ensure compliance with legislative and regulatory requirements, including requirements
under the Catalist Rules, where appropriate. The Independent Directors, in consultation with the Management, will
request for the establishment of written policies of any particular matter that is deemed essential to form part of
management control.
On a quarterly basis, the Management will report to the ARC the financial processes and controls that are in place,
highlighting material financial risks and impacts and providing updates on the status of significant financial issues of
the Group, if any.
The Board is responsible for the governance of risk. It ensures that the Management maintains a sound system of
risk management and internal controls to safeguard the Company’s shareholders’ interests and the Group’s assets
and to determine the nature and extent of significant risks which the Board is willing to take in achieving its strategic
objectives.
The Management is responsible to the Board for the design, implementation and monitoring of the Group’s risk
management and internal control systems and to provide the Board with a basis to determine the Group’s level of risk
tolerance and risk policies. The Board acknowledges that it is responsible for reviewing the adequacy and effectiveness
of the Group’s risk management and internal control systems including financial, operational, compliance and
information technology controls. The Board also recognises its responsibilities in ensuring a sound system of internal
controls to safeguard the Company’s shareholders’ investments and the Group’s assets.
