Page 45 - ar2012

Directors’ Report
DIRECTORS’ CONTRACTUAL BENEFITS
Except as disclosed in the financial statements, since the end of the previous financial year, no Director has received or become
entitled to receive benefits by reason of a contract made by the Company or a related corporation with the Director, or with
a firm of which the Director is a member, or with a company in which the Director has a substantial financial interest.
OPTIONS
During the financial year, no option to take up unissued shares of the Company or any corporation in the Group was granted.
No shares have been issued during the financial year by virtue of the exercise of an option to take up unissued shares of the
Company or any corporation in the Group.
At the end of the financial year, there were no unissued shares of the Company or any corporation in the Group under option.
AUDIT COMMITTEE
The Audit Committee performs the functions specified in Section 201B(5) of the Companies Act, Cap. 50. 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
the internal auditors’ evaluation of the Company’s system of internal accounting and financial controls. 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 auditor’s report, as well as announcements to shareholders and the SGX before submission to the Board.
The Audit Committee met twice with the external and internal auditors, without the presence of Management, during the year.
The Audit Committee annually reviews the independence of the external auditor and recommends to the Board, the external
auditor to be appointed. Further details on the Audit Committee are disclosed in the Report on Corporate Governance.
The Straits Trading Company Limited ANNUAL REPORT 2012 43 /