FRENCKEN GROUP LIMITED
ANNUAL REPORT 2015
39
5 AUDIT COMMITTEE (CONT'D)
(f) review and discuss with the independent auditors any suspected fraud or irregularity, or suspected infringement
of any relevant law, rules or regulations, which has or is likely to have a material impact on the Group’s operating
results or financial position, and management’s response;
(g) review the adequacy of the Group’s internal financial controls, operational and compliance controls and risk
management policies and systems;
(h) consider the appointment or re-appointment of the independent auditors and matters relating to resignation or
dismissal of the auditors;
(i) review and recommend to the Board transactions falling within the scope of Chapter 9 of the Listing Manual;
(j) undertake such other reviews and projects as may be requested by the Board and will report to the Board its
findings from time to time on matters arising and requiring the attention of the Audit Committee; and
(k) generally undertake such other functions and duties as may be required by statute of the Listing Manual, and by
such amendments made thereto from time to time. In addition, all future transactions with related parties shall
comply with the requirements of the Listing Manual. As required by paragraph 1(9)(e) of Appendix 2.2 of the
Listing Manual, the Directors shall abstain from voting in any contracts or arrangements or proposed contracts
or arrangements in which they have a personal material interests.
The Audit Committee has the power to conduct or authorise investigations into any matters within the Audit
Committee’s scope of responsibility. The Audit Committee is authorised 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 Company has in place a whistle-blowing policies and arrangement by which staff may, in confidence, raise
concerns about possible improprieties in matters of financial reporting or other matters. To ensure independent
investigation of such matters and for appropriate follow-up action, all whistle-blowing reports are to be sent directly
to the Chairman of the Audit Committee. Details of the whistle-blowing arrangements have been communicated to
all staff of the Group.
The Audit Committee has full access to and co-operation from management and has full discretion to invite any
Director or Executive Officer to attend its meetings, and has been given reasonable resources to enable it to discharge
its functions.
The Group engages different audit firms for its subsidiaries and the names of these audit firms are disclosed in Note
14 to the financial statements. Both the Audit Committee and Board have reviewed the appointment of these audit
firms and are of view that the appointments of these other audit firms would not compromise the standard and
effectiveness of the audit of the Company and the Group. Accordingly, the Company has complied with Rules 712
and 716 of the Listing Rules of the SGX-ST.
For details of fees in respect of audit and non-audit services, please refer to Note 7(a) to the financial statements.
The Audit Committee has reviewed the range and value of non-audit services performed by the independent auditors
and is satisfied that the nature and extent of such services will not prejudice the independence and objectivity of
the independent auditors. At the forthcoming Annual General Meeting of the Company, the Audit Committee has
recommended to the directors the nomination of Deloitte & Touche LLP for re-appointment as independent auditors
of the Group.
During the year under review, the Audit Committee met with the independent auditors a total of five (5) times of
which once is without the presence of management.
DIRECTORS’ STATEMENT
(CONT’D)
