Singapore Airlines 2004 Annual Report Download - page 39

SIA Annual Report 03/04 37
Principle 12: The Board should ensure that the
M anagement maintains a sound system of internal
controls to safeguard the shareholders’ investments
and the company’s assets.
It is the opinion of the Board that, in the absence of evidence
to the contrary, the system of internal controls maintained
by the Company’s management and that was in place
throughout the financial year and up to the date of this
report provides reasonable, but not absolute, assurance
against material financial mis-statements or loss, and include
the safeguarding of assets, the maintenance of proper
accounting records, the reliability of financial information,
compliance with appropriate legislations, regulations and
best practices, and the identification and containment of
financial, operational and compliance risks. The Board notes
that all internal control systems contain inherent limitations
and no system of internal controls could provide absolute
assurance against the occurrence of material errors, poor
judgment in decision-making, human error, losses, fraud or
other irregularities.
A dedicated Risk Management Department was formed in
2003 to look into and manage the Company’s risk
management policies. The Risk Management Report can be
found in page 28 of this report.
Principle 13: The company should establish an internal
audit function that is independent of the activities it
audits.
The Internal Audit Department (IAD) is an independent
function that reports directly to the Audit & Risk Committee.
The IAD assists the Committee and the Board by performing
regular evaluations on the Company’s internal controls,
financial and accounting matters, compliance, business and
financial risk management policies and procedures, and
ensure that internal controls are adequate to meet the
Company’s requirements.
The Internal Audit Department will meet or exceed the
Standards for the Professional Practice of Internal Auditing
set by The Institute of Internal Auditors.
Principle 14: Companies should engage in regular,
effective and fair communication w ith shareholders.
It is the Company’s position that it is of ultimate importance
that shareholders are provided with prompt disclosure of
pertinent information. The Company also values dialogue
with both retail and institutional shareholders, and holds
media briefings when announcing half-yearly and year-end
results. The proceedings are concurrently broadcasted live
via webcast. Media briefings are also held as and when
necessary. Additionally, all financial results as well as price-
sensitive information are released through various media
which includes press releases, MASNET releases and/or
postings on the Company’s website, at www.singaporeair.com.
The Company’s Investor Relations Department meets with
key institutional investors on a regular basis, as well as answers
queries from shareholders from time to time.
The Company has clear policies and guidelines for dealings
in the securities of the Company by Directors and employees,
which are in conformity with the SGX-ST Best Practices Guide.
With the recent adoption of quarterly reporting, the Company
prohibits selected employees from trading in its securities for
the period commencing 2 weeks from announcement of
quarterly results; and a period commencing 1 month from
the announcement of year-end results.
Principle 15: Companies should encourage greater
shareholder participation at AGM s, and allow
shareholders the opportunity to communicate their
view s on various matters affecting the company.
The Board members always endeavour to attend AGMs and
EGMs where shareholders are given the opportunity to raise
questions and clarify issues they may have relating to the
resolutions to be passed, with the Board. The Chairmen of
the Audit & Risk, Board Finance, Board Compensation &
Organisation, Nominating, and Safety and Reliability
Committees, or members of the respective committees
standing in for them, as well as the external auditors, will be
present and available to address questions at these meetings.