CORPORATE GOVERNANCE
STATEMENTS
28
CITIC ENVIROTECH LTD.
Annual Report
2015
(b) review the interim and annual financial statements and the Auditors’ report on the Company’s annual
financial statements before they are presented to the Board;
(c)
review with the management, external and internal auditors the adequacy and effectiveness of the
company’s internal controls, business and service systems and practices;
(d) review related and interested party transactions;
(e)
review the co-operation given by our management to the auditors
(f)
consider the appointment and re-appointment of the external auditors
(g) review interested person transactions, if any
(h)
review the Group’s compliance with such functions and duties as may be required under the relevant
statutes or the Listing Manual of the Singapore Exchange Trading Securities Limited, and by such
amendments made thereto from time to time.
The AC has the power to conduct or authorize investigations into any matters within the AC’s scope of
responsibility. The AC is authorized to obtain independent professional advice if it deems necessary in the
discharge of its responsibilities. Such expenses are to be borne by the Company.
The AC has full access to and co-operation of the Company’s management and has full discretion to invite
any director or executive officer to attend the meetings, and has been given reasonable resources to
enable it to discharge its functions.
Pursuant to Rule 1207 (6)(b) and (6)(c) of the Listing Manual, the Audit Committee undertook the review
of the independence and objectivity of the auditors as well as reviewing the non-audit services provided
by the incumbent auditors, and the aggregate amount of audit fees paid to them. The Audit Committee
is satisfied that neither their independence nor their objectivity is put at risk, and that they are still able to
meet the audit requirements and statutory obligations of the Company. Accordingly, the Audit Committee
has recommended the re-appointment of Deloitte & Touche LLP as auditors at the forthcoming AGM of
the Company. In recommending the re-appointment of the auditors, the Audit Committee considered and
reviewed a variety of factors including adequacy of resources, experience of supervisory and professional
staff to be assigned to the audit, and size and complexity of the Group, its businesses and operations. The
Audit Committee, having reviewed the range and value of non-audit services performed by the external
auditors, Deloitte & Touche LLP and being satisfied that the nature and extent of such services will not
prejudice the independence and objectivity of the external auditors, are pleased to confirm their re-
nomination.
The Company appointed Deloitte & Touche LLP and its overseas practices as the external auditors for the
Group, except for its associates, Beijing Beipai Membrane Technology Co., Ltd. and Chengdu Xingrong
Environment Co., Ltd., which are audited by Ruihua Certified Public Accountant, PRC and ShineWing
Certified Public Accountant, PRC respectively. The Board and Audit committee are satisfied that the
appointments would not compromise the standard and effectiveness of the audit of the Group.
During the financial period, non-audit fee of $157,000 was paid to the auditors of the Company.
The Company is in compliance with Rules 712, 715 and 716 of the SGX-ST Listing Manual.
Principle 13: Internal Audit
The Audit Committee’s responsibility in overseeing that the Company’s risk management system and
internal controls are adequate will be complemented by the outsourced internal auditor, Crowe Howath
First Trust LLP, whom the Company has appointed. The internal auditor had adopted the Standards for the
Professional Practice of Internal Auditing set by The Institute of Internal Auditors.
