Singapore Airlines 2007 Annual Report Download - page 43

Singapore Airlines 41 Annual Report 2006-07
(f) Whistle-Blowing
The AC is apprised of all cases of whistle-blowing. Cases that are signifi cant are reviewed by the AC for adequacy and
independence of investigative actions and resolution.
The AC has full access to and co-operation of Management. The AC also has full discretion to invite any Director or
executive offi cer to attend its meetings, and has been given adequate resources to discharge its functions. During the
year, the AC met with the internal and external auditors without the presence of Management.
The AC has undertaken a review of the fees and expenses paid to the external auditors, including fees paid for
non-audit services during the year, and is of the opinion that the auditor’s independence has not been compromised.
In the opinion of the Directors, the Company complies with the Code’s guidelines on Audit Committees.
Internal Controls and Internal Audit (Principles 12 and 13)
The Internal Audit Department (IAD) is an independent department that reports directly to the Audit Committee. The IAD
assists the Committee and the Board by performing regular evaluations on the Company’s internal controls, fi nancial
and accounting matters, compliance, business and fi nancial risk management policies and procedures, and ensuring that
internal controls are adequate to meet the Company’s requirements. The IAD meets or exceeds the Standards for the
Professional Practice of Internal Auditing set by The Institute of Internal Auditors.
Additionally, the various Divisions within the Company have developed a Control Self Assessment programme, where
operating departments’ management review and report on the adequacy of their respective units’ control environment to the
AC annually.
It is the opinion of the Board that, in the absence of evidence to the contrary, the system of internal controls maintained by
Management and in place throughout the fi nancial year 2006-07, provides reasonable, but not absolute, assurance against
material fi nancial misstatements or loss, and include the safeguarding of assets, the maintenance of proper accounting
records, the reliability of fi nancial information, compliance with appropriate legislation, regulations and best practices, and the
identifi cation and containment of fi nancial, business 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 judgement in decision-making, human error, losses, fraud or other irregularities.
A dedicated Risk Management Department looks into and manages the Company’s risk management policies. The Risk
Management Report can be found in page 34 of this Report.
Communication with Shareholders (Principles 14 and 15)
The Company believes in prompt disclosure of pertinent information. It values dialogue with shareholders, and holds
analyst and media briefi ngs when announcing half-yearly and year-end results. The proceedings are concurrently
broadcasted live via webcast. Media briefi ngs are also held as and when necessary. Additionally, all fi nancial results
as well as price-sensitive information are released through various media which includes press releases posted on the
Company’s website at www.singaporeair.com, and disclosure via SGXNET. The Company’s Investor Relations Department
meets with institutional investors on a regular basis, as well as answers queries from shareholders from time to time.
The Board members always endeavour to attend shareholder meetings 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 various Board Committees or members of the Board Committees standing in for them, as well as the external
auditors, would be present and available to address questions at these meetings. Minutes of shareholders’ meetings are
available on request by registered shareholders.
Banking Transaction Procedures
Lenders to SIA are to note that all bank transactions undertaken by any Group Company must be properly authorised,
including the opening of new bank accounts and any proposed credit facilities. Each Group Company has its own approval
limits and procedures for every banking transaction, having regard to the nature of the transaction concerned. These
approval limits and procedures are updated from time to time and are available on request. The bankers of each Group
Company should always verify, in accordance with the verifi cation process set out in the applicable procedures, that the
transaction is properly authorised.
CORPORATE GOVERNANCE REPORT
For the period 1 April 2006 to 31 March 2007