CORPORATE GOVERNANCE
STATEMENTS
27
CITIC ENVIROTECH LTD.
Annual
Report
2015
Based on the internal and external audit findings, the Board with the concurrence of the Audit Committee
is of the opinion that the Group’s internal controls addressing financial, operational and compliance risks
are adequate in meeting the needs of the Group and provide assurance in safeguarding the Group’s assets.
The internal controls ensure the Group’s maintenance of proper accounting records, compliance with
applicable regulations and best practices and timely identification and containment of financial, operational
and compliance risks.
Whistle-Blowing Policy
A Whistle-Blowing Policy was approved by the Board and implemented on 14 February 2007. The Board
believes that this policy will provide an avenue for employees to bring their complaints to the attention of
the Board without fear of reprisal. The establishment of the Whistle-Blowing structure is to allow the Group
to detect and deter wrongdoing in preparing and implementing financial policies, reports and materials as
well as internal controls essential to support its financial and accounting system.
The policy was presented and published on the notice board to all employees for implementation.
The Company regularly reviews and improves its business and operational activities to identify areas of
significant business risks as well as take appropriate measures to control and mitigate these risks. The
Company reviews all significant control policies and procedures and highlights all significant matters to the
Audit Committee and the Board. The risk issues are highlighted on pages 77 to 84 under Note 4 to the
financial statements.
The external auditors, in the course of conducting their annual audit procedures on the statutory financial
statements, also reviewed the Group’s significant internal financial controls to the extent of their scope as
laid out in their audit plan. Any material non-compliance and internal financial control weaknesses noted
by the auditors are reported to the Audit Committee together with the auditors’ recommendations. The
management would then take appropriate actions to rectify the weaknesses highlighted.
The Audit Committee, in the course of their review of the reports presented by the internal and external
auditors, also reviewed the effectiveness of the Group’s system of internal controls.
At the financial year-end, the CEO and CFO have assured the Board that:
a)
The financial records of the Group have been properly maintained for the period ended 31
December 2015 to give a true and fair view of the Company’s operations and finances;
b)
Material information relating to the Company was disclosed on a timely basis for preparing the
financial statements;
c)
The Company’s internal control and risk management systems were effective at the end of the
financial period.
The Board, with the concurrence of the Audit Committee, is of the opinion that there are adequate and
effective internal controls and risk management systems to meet the financial, operational and compliance
risks of the Group in its current business environment.
Principle 12: Audit Committee
The Audit Committee (“AC”) comprises three members, all of whom, including the Chairman, are
independent. At the date of this report, the Audit Committee comprises the following members:
Mr Yeung Koon Sang alias David Yeung, Chairman and Independent Director
Mr Tay Beng Chuan, Independent Director
Mr Lee Suan Hiang, Independent Director
The functions of the AC are as follows:
(a)
review with the internal and external auditors of the Company, their audit plan, evaluation of the
internal accounting controls, audit report and ensures co-operation is given by the Company’s
management to the internal and external auditors;
