Singapore Airlines 2008 Annual Report Download - page 47

Singapore Airlines Annual Report 2007-08
45
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, financial and accounting
matters, compliance, business and financial risk management policies and procedures, and ensuring that internal controls are
adequate to meet the Company’s requirements. The IAD conforms to all 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 financial year 2007-08, provides reasonable, but not absolute, assurance against
material financial misstatements or loss, and include the safeguarding of assets, the maintenance of proper accounting
records, the reliability of financial information, compliance with appropriate legislation, regulations and best practices, and the
identification and containment of financial, 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 judgment 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 on page 37.
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 briefings when announcing half-yearly and year-end results. The proceedings are concurrently broadcasted live via
webcast and the recordings are made available on our Company website at www.singaporeair.com/investor. Analyst and media
briefings are also held as and when necessary.
Additionally, all financial results as well as price sensitive information are released in a timely manner through various media
which include press releases posted on the Company website, and disclosure via SGXNET.
The Investor Relations Department meets with analysts and investors on a regular basis, through local and overseas investor
conferences and roadshows, as well as ad-hoc meetings and teleconferences in office.
The Company has won the “Most Transparent Company – Transport Storage Communication Category” which was awarded by
the Securities Investors Association of Singapore (“SIAS”) in 2007, the sixth time since the inception of SIAS Investors’ Choice
Award in 2000.
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 verification process set out in the applicable procedures, that the transaction is properly
authorised.
CORPORATE GOVERNANCE REPORT
For the period 1 April 2007 to 31 March 2008