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(11817-V) |

Annual Report


4.6 The Audit Committee, on behalf of the Board, regularly reviews and holds discussions with the

Management on the actions taken on internal control issues identified in reports prepared by the GIA,

external auditors and Management. Minutes of the Audit Committee meetings are tabled to the Board.

4.7 Review and award of major contracts by the project committees and teams, subject always to the

delegated authority limits set by the Board. A minimum of three quotations is called for and tenders are

awarded based on criteria such as quality, track record and speed of delivery.

4.8 Clearly documented standard operating procedure manuals set out the policies and procedures for

day to day operations to be carried out. Regular reviews are performed to ensure that documentation

remains current, relevant and aligned with evolving business and operational needs.

4.9 The competency of staff is enhanced through rigorous recruitment process and development

programmes. A performance appraisal system of staff is in place, with established targets and

accountability and is reviewed on an annual basis.



The Group’s internal audit function is undertaken by GIA which reports directly to the Audit Committee and

administratively to the Group MD. The GIA assists the Audit Committee in the discharge of its duties and

responsibilities. Its key role is to provide independent and objective assurance designed to add value and

assist the Group in accomplishing its objectives by bringing a systematic, disciplined approach to evaluate

and improve the effectiveness of risk management, internal control system and governance processes.

The business processes and conduct of the operating units within the Group are continuously assessed by

GIA in the context of adequacy and effectiveness of the financial, operational controls and risk management.

GIA reports to the Audit Committee and communicates to Management on audit observations noted in

the course of their review and performs monitoring on the status of actions taken by the operating units. It

conducts independent reviews of the key activities within the Group’s operating units based on a detailed

annual audit plan developed using a risk-based methodology including input from senior management and

the Audit Committee, which was approved by the Audit Committee. The terms of reference of the GIA are

clearly spelt out in the Group Internal Audit Charter.

The GIA evaluates the following:

Adequacy, integrity, effectiveness of the Company and Group’s internal controls in safeguarding

shareholders’ investment and the Group’s assets. The internal controls cover financial, operational,

information technology, compliance controls and enterprise risk management;

Extent of compliance with established policies, procedures and statutory requirements; and

Adequacy of policies, procedures and guidelines on the Company and Group’s accounting, financial

and operational activities.