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THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2011
REPORT ON
CORPORATE GOVERNANCE
ACCOUNTABILITY (Principle 10)
In presenting the annual financial statements and quarterly announcements to shareholders, it is the aim of the Board to
provide shareholders with detailed analysis, explanations and assessment of the Company’s and the Group’s financial position
and prospects.
The Management currently provides the Board with balanced and understandable accounts of the Company’s performance,
financial position and business prospects on a regular basis.
AUDIT COMMITTEE (Principle 11)
The Audit Committee comprises three non-executive Directors and is chaired by Mr Yap Chee Keong. The other two members
of the Audit Committee are Tan Sri Dato’ Dr Lin See-Yan and Ms Chew Gek Hiang.
All members of the Audit Committee are financially literate and have accounting or related financial management expertise
or experience.
The role of the Audit Committee is documented in a Charter (Terms of Reference) approved by the Board. The Charter,
amended by the Board in 2005 to facilitate the Company’s compliance with the Code, defines the purpose, authority and
responsibilities of the Audit Committee. The Audit Committee is authorised to investigate any matters specified in the Charter.
In performing its functions, the Audit Committee reviews the overall scope of both internal and external audits and the
assistance given by the Company’s officers to the auditors. It meets with the Company’s internal and external auditors to
discuss the results of their respective examinations and their evaluation of the Company’s system of internal accounting and
financial controls on a quarterly basis.
The Audit Committee reviews interested person transactions to ensure that they are carried out on normal commercial terms
and are not prejudicial to the interests of the Company and its minority shareholders. The Audit Committee also reviews
the consolidated financial statements and the auditors’ report, as well as related announcements to shareholders and The
Singapore Exchange Securities Trading Limited before submission to the Board.
The AC has reviewed and is satisfied that the independence and objectivity of the external auditors have not been compromised
by the provision of non-audit services. Accordingly, it has recommended to the Board the nomination of the external auditors,
Messrs Ernst & Young LLP, for re-appointment at the forthcoming Annual General Meeting to be held on 27 April 2012. In
2011, the AC met with the external auditors and internal auditors without the presence of the Management twice.
In appointing the audit firms for the Group, the Audit Committee is satisfied that the Company has complied with the Listing
Rules 712 and 715.