21
SUNMOON FOOD COMPANY LIMITED
ANNUAL REPORT 2015
REPORT ON
CORPORATE GOVERNANCE
The Board, with the concurrence of the ARC, holds the opinion that, the system of internal controls for financial, operational,
and compliance risks maintained by the Group’s management throughout the financial period from 1 January 2015 to 31
December 2015 up to the date of this report is adequate to meet the needs of the Group in its current business environment.
The Board has received assurance from the Executive Chairman/CEO and the GFC:
a)
That the financial records have been properly maintained and the financial statements give a true and fair view of
the company’s operations and finances; and
b)
Regarding the effectiveness of the company’s risk management and internal control systems.
AUDIT AND RISK COMMITTEE (“ARC”)
The ARC, regulated by a set of written terms of reference, comprises four independent non-executive directors namely, Dr.
Tan Eng Liang, Mr Michael John Martin, Mr Chee Wai Pong and Mrs Jessie Peh (appointed on 5 Nov 2015). The Chairman
of the ARC is Mr Michael John Martin.
The Board is of the view that the members of the ARC are appropriately qualified, having the necessary accounting or
related management expertise or experience as the Board interprets such qualification, to discharge their responsibilities.
The ARC meets periodically to discuss and review the following where applicable:
Audit
(a)
review the significant financial reporting issues and judgements so as to ensure the integrity of the financial
statements of the company and any announcements relating to the company’s financial performance;
(b)
review and report to the Board at least annually the adequacy and effectiveness of the company’s internal controls,
including financial, operational, compliance and information technology controls (such review can be carried out
internally or with the assistance of any competent third parties);
(c)
review the effectiveness of the company’s internal audit function;
(d)
review the scope and results of the external audit, and the independence and objectivity of the external auditors;
and review and discuss with the external auditors:–
•
the audit plan, their evaluation of the system of internal controls, their audit report, their letter to Management
and Management’s response;
•
the quarterly, half yearly, and annual financial statements, balance sheet and profit and loss accounts
before submission to the Board for approval, focusing in particular, on changes in accounting policies and
practices, major risk areas, significant adjustments resulting from the audit, the going concern statement,
compliance with accounting standards as well as compliance with any stock exchange and statutory/
regulatory requirements;
