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SEE HUP SENG LIMITED
Annual Report 2012
23
Corporate Governance Report
Both the Company’s internal auditors, Crowe Horwath First Trust Risk Advisory Pte Ltd, and external auditors, Moore
Stephens LLP (to the extent as required by them to form an audit opinion on the statutory financial statements) have
conducted an annual review of the effectiveness of the Group’s key internal controls, including financial, operational and
compliance controls and risk management. Any areas of review where the existing control can be enhanced to enable
the process to operate more effectively and efficiently, together with recommendation for improvement are reported to
the AC. A copy of the report is also issued to the relevant department for its follow-up action. The timely and proper
implementation of all required corrective, preventive or improvement measures are closely monitored.
Management alone does not guarantee that business undertakings will not fail. However, by identifying and managing
risks that may arise, the Group can make more informed decisions and benefit from a better balance between risk and
reward. This will help protect and also create shareholders’ value.
Based on the internal controls framework established, the independent review of the Group’s governance and internal
controls framework conducted by the internal and external auditors, and the assurance from the Management, the
Board opines, with the concurrence of the AC, that there are adequate controls in place within the Group addressing
material financial, operational and compliance risks within the current scope of the Group’s business operations.
Principle 13: Internal Audit
The Company’s internal audit function has been outsourced to Crowe Horwath First Trust Risk Advisory Pte Ltd. The
internal auditor reports directly to the chairman of the AC on audit matters. The AC also reviews and approves the
annual internal audit plans and resources to ensure that the internal auditor has the necessary resources to adequately
perform its functions.
The AC and the Board are satisfied that there are adequate internal controls in the Company.
Principle 14: Communication with Shareholders
The Company has adopted quarterly results reporting. In line with the continuous disclosure obligations of the Company
pursuant to the Singapore Exchange Listing Rules and the Singapore Companies Act, the Board’s policy is that all
shareholders should be informed in a comprehensive manner all material developments that impact the Group through
SGXNET and press releases on an immediate basis.
Principle 15: Promoting Greater Participation by Shareholders
The Board is mindful of its obligations to provide timely and fair disclosure of material information in accordance with
the Corporate Disclosure Policy of the SGX-ST. The Company does not practice selective disclosure. Results, Annual
Reports and other material information are released on the SGXNET. The Company’s Annual Reports are sent to all
shareholders and are also available on request.
At general meetings, shareholders are given the opportunity to express their views and ask questions regarding the
Group and its businesses. The shareholders of the Company are allowed to appoint proxies to attend and vote on their
behalf. The Company is open to meetings with investors and analysts, and in conducting such meetings, the Company
is mindful of the need to ensure fair disclosure.
During general meetings, separate resolutions for each distinct issue are tabled for shareholders’ approval.
The Directors, including the chairpersons of the Board and the respective committees are present at the annual
general meetings to answer shareholders’ questions. The external auditors will also be present to assist the Directors
in addressing any relevant queries by shareholders.