provide absolute assurance against the occurrence of material
errors, poor judgment in decision-making, human error losses,
fraud or other irregularities.
Based on the system of risk management and internal controls
established and maintained within the Trust and its subsidiaries,
work performed by the internal and external auditors, and
reviews performed by Management, various Board Committees
and the Board, and the assurance from the CEO and the CFO,
the Board, with the concurrence of the Audit Committee,
are of the opinion that the system of risk management and
internal controls addressing material financial, operational,
compliance and information technology risks of the Trust and
its subsidiaries were adequate and effective as at 31 March
2015 in addressing material risks.
Principle 12: Audit Committee
The Audit Committee comprises Mr Michael Gray as Chairman,
Mr David Lim, Mr Mohandas Pai and Mr Ng Eng Leng. All AC
members, including the Chairman, are considered independent.
The Board is of the view that the members of the AC are
appropriately qualified to discharge their responsibilities.
Between Mr Gray, Mr Lim, Mr Pai and Mr Ng, they have
extensive accounting related financial management and
legal expertise and experience.
The AC’s primary role is to assist the Board in discharging its
statutory and other responsibilities relating to internal controls,
financial and accounting matters, compliance, business and
financial risk management. The AC’s responsibilities include:
• Reviewing the procedures put in place to address any conflict
that may arise between the interests of the Unitholders and
the interests of the Trustee-Manager, including interested
person transactions, the indemnification of expenses or
liabilities incurred by the Trustee-Manager and the setting of
fees and charges payable out of the Trust property;
• Reviewing with the external auditors and internal auditors,
the audit plans and reports and the evaluation of the
system of internal accounting controls, based on the
recommendations and observations of the auditors;
• Reviewing significant financial reporting issues and
treatments so as to ensure the integrity of the financial
statements of the Trust and recommending to the Board the
financial statements for release to the SGX-ST;
• Reviewing the scope of internal audits, the reports and
its cost effectiveness, which includes ensuring that where
deficiencies in internal controls have been identified,
appropriate and prompt remedial action is taken by
the Management;
• Reviewing policies and practices put in place by
Management to ensure compliance with applicable laws,
regulations, guidelines and constitutional documents of
the Trust;
• Recommending the appointment, re-appointment and
removal of the external or internal auditors to the Board;
• Reviewing the independence and objectivity of the external
auditors annually, including considering the nature and
extent of the non-audit services performed by them;
• Meeting external and internal auditors, without the presence
of the Management, at least once annually;
• Reviewing and reporting to the Board on any inadequacies,
deficiencies or matters of concern of which the AC becomes
aware or that it suspects, arising from its review of internal
financial controls, operational and compliance controls
and risk management policies and systems of the Trustee-
Manager and the Trust;
• Reviewing and reporting to the Board any breach of
applicable laws and regulations that the AC becomes aware
of or that it may suspect;
• Reporting to MAS if the AC is of the view that the Board has
not taken, or does not propose to take, appropriate action to
deal with any matter reported by the AC to the Board;
• Undertaking such other functions as may be agreed to by
the AC and the Board; and
• Investigating any matters within the AC’s terms of
reference, whenever it deems necessary.
For FY14/15, the AC held four meetings during the year. The
AC has reviewed the external and internal auditors’ findings.
The AC also met with the external and internal auditors
without the presence of the Management. The AC is satisfied
with the processes put in place to mitigate fraud risk exposure
in the Trust. The AC is also satisfied that the whistle blowing
arrangements put in place by Management provide a channel
through which staff may, in confidence, raise concerns about
possible improprieties in matters of financial reporting or other
matters. The external and internal auditors have updated the
AC members on changes to accounting standards and issues
which have a direct impact on financial statements during the
AC meetings in FY14/15.
External Audit
Ernst & Young LLP (“EY”) was appointed as the external
auditor for the Trust and its subsidiaries. Unitholders’ approval
was obtained for their re-appointment at the last Annual
C o r p o r a t e g o v e r n a n c e
ASCENDAS india trust ANNUAL REPORT 2014/15
