Singapore Airlines 2016 Annual Report Download - page 74

Company imposes a trading embargo on its Directors
and employees from trading in its securities for the
period of two weeks prior to the announcement of
quarterly results; and a period of one month prior to the
announcement of year-end results. In addition, Directors
and employees are cautioned to observe the insider
trading laws at all times; and to avoid dealing in the
Company’s securities for short-term considerations.
Risk Management and Internal Controls
(Principle 11)
A dedicated Risk Management Department looks into
and manages the Group’s risk management policies.
The Statement of Risk Management can be found on
page 62.
Annually, a report is submitted by the Risk Management
Department to the Board, which provides a
comprehensive review of the risks faced by the Group.
The review includes the identification of risks overseen
by the main Board and its various Board Committees,
as well as the current assessment and outlook of the
various risk factors.
The Board had received assurance from the CEO and
Senior Vice President Finance on the adequacy and
eectiveness of the Company’s risk management and
internal control systems, and 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.
Audit Committee (Principle 12)
The AC’s activities for FY2015/16, in accordance with its
responsibilities and duties under its Charter, included
the following:
(a) Financial Reporting
The AC reviewed the quarterly and annual
financial statements and financial announcements
required by The Singapore Exchange Securities
Trading Limited (“SGX-ST”) for recommendation
to the Board for approval. The review focused
on changes in accounting policies and practices,
major judgemental and risk areas, significant
adjustments resulting from the audit, the going
concern assumption, compliance with accounting
standards, compliance with SGX-ST and other
legal requirements. The AC keeps itself apprised
of changes in accounting policies and guidelines
through scheduled regular updates by the external
auditors, of such, in meeting agendas.
(b) External Audit
The AC discussed with the external auditors the
audit plan, and the report on the audit of the year-
end financial statements; reviewed the external
auditors’ management letter and Management’s
responses thereto; and reviewed the external auditors’
objectivity and independence from Management
and the Company. In assessing independence, the AC
reviewed the fees and expenses paid to the external
auditors, including fees paid for non-audit services
during the year. The AC is of the opinion that the
auditors’ independence has not been compromised.
The Company has complied with Rules 712 and
715 of the SGX-ST Listing Manual in relation to the
engagement of its auditors.
(c) Internal Audit
The AC reviewed the scope of internal audit work
and its audit programmes; reviewed the major
findings during the year and Management’s
responses thereto; and ensured the adequacy of
the independence and resource suiciency of the
internal audit function.
(d) Risk Management
The AC reviewed the adequacy and eectiveness
of the Group’s material controls, including
financial, compliance, operational and information
technology controls, to safeguard shareholders’
investments and the Group’s assets.
The Risk Management processes adopted are
also audited periodically by Internal Audit and
their adequacy and eectiveness reported to the
AC accordingly.
(e) Interested Person Transactions
The AC reviewed interested person transactions to
ensure compliance with the SGX-ST Listing Manual
and the Shareholders’ Mandate obtained at the last
Annual General Meeting.
Corporate
Governance Report
(continued)
Singapore Airlines72
PERFORMANCE