CORPORATE GOVERNANCE REPORT
(CONT’D)
•
reviewing arrangements by which whistle-blowers may, in confidence, raise concerns about possible improprieties
inmatters of financial reporting or other matters and ensuring that arrangements are in place for the independent
investigation of such matters and for appropriate follow-up action;
•
examining the effectiveness of financial, operating and compliance controls and risk management policies and
systems at least annually;
•
reviewing external audit reports to ensure that where deficiencies in internal controls have been identified,
appropriate and prompt remedial action is taken by the Management;
•
reviewing the adequacy of external audits in respect of cost, scope and performance;
•
making recommendations to the Board on the appointment, reappointment and removal of external auditors
and approving the remuneration and terms of engagement of external auditors;
•
reviewing, on an annual basis, the independence and objectivity of the external auditors and where the external
auditors also provide a substantial volume of non-audit services to LMIR Trust, keeping the nature and extent of
such services under review, seeking to balance the maintenance of objectivity and value for money;
•
reviewing internal audit reports annually to ascertain that the guidelines and procedures established to monitor
Related Party Transactions have been complied with;
•
ensuring that the internal audit function is adequately resourced and has appropriate standing with LMIR Trust;
•
ensuring, at least annually, the adequacy of the internal audit function;
•
meeting with external and internal auditors, without the presence of the executive officers of the Manager, at
least on an annual basis;
•
reviewing the significant financial reporting issues and judgments so as to ensure the integrity of the financial
statements of LMIR Trust and any formal announcements relating to LMIR Trust’s financial performance;
•
investigating any matters within the ARC’s terms of reference, whenever it deems necessary; and
•
reporting to the Board on material matters, findings and recommendations.
In relation to the above enumerated responsibilities of the ARC, it is hereby confirmed that for the financial year under
review, the ARC has undertaken the review of all the non-audit services provided by the auditors, and they would not,
in the ARC’s opinion, affect the independence of the external auditors. The aggregate amount of audit fees payable to
external auditors for FY 2015 was S$450,000, of which audit fees amounted to S$342,000 and non-audit fees amounted
to S$108,000, respectively.
The ARC has full access to and co-operation from the Management and enjoys full discretion to invite any director and
executive officer of the Manager to attend its meetings. The ARC also has full access to reasonable resources to enable it
to discharge its functions properly.
RSM Chio Lim LLP audited LMIR Trust and the Singapore subsidiaries. A member firm of RSM International of which RSM
Chio Lim LLP is a member, audited the foreign subsidiaries. LMIR Trust has complied with Rules 712 and 715 of the Listing
Manual issued by the SGX-ST in relation to its auditors.
ANNUAL REPORT 2015
45
