APLEGEN SCHEME
The Company’s subsidiary, Aplegen, adopted a share option scheme in respect of the unissued shares of Aplegen
(the “
Aplegen Scheme
”), for participation by eligible employees of Aplegen (“
Aplegen Employees
”). As announced
on 30 June 2015, the voluntary liquidation of Aplegen has been completed. Pursuant to the Aplegen Scheme, options
granted to the Aplegen Employees shall terminate upon the dissolution of Aplegen and as such, there are no share
options which remain outstanding as at the end of the financial year under review.
ACCOUNTABILITY AND AUDIT
Principle 10: Accountability
The Board provides shareholders with quarterly, half-year and full-year financial reports within the mandatory
period. In presenting financial statements to shareholders, the Board aims to provide shareholders with a balanced
and clear assessment of the Group’s performance, position and industry conditions. The responsibility to provide
a balanced and understandable assessment extends to interim and other price sensitive public reports and reports
to regulators (if required). The Board has also taken adequate steps to ensure compliance with legislative and
regulatory requirements, including requirements under the Listing Manual of the SGX-ST, by establishing written
policies where appropriate.
Management provides all members of the Board with management accounts which present a balanced and
understandable assessment of the Company’s and Group’s performance, position and prospects on a monthly basis.
Such reports enable the Directors to keep abreast of the Group’s operating and financial performance and position.
Any material variances between the projections and actual results are disclosed and explained.
Principle 11: Risk Management and Internal Controls
Principle 13: Internal Audit
The Company has put in place a risk management and internal control system in areas such as financial, operational,
compliance and information technology controls. Risk management and internal controls are detailed in formal
instructions, standard operating procedures and financial authority limits policies. The principal aim of the internal
control system is the management of business risks with a view to safeguarding shareholders’ investments and the
Group’s assets. The management maintains the risk management and internal control system and the Board monitors
the Group’s risks through the AC and internal auditors. In designing these controls, the Company has considered the
risks to which the business is exposed, the likelihood of such risks occurring and the costs of protecting against them.
The Company has outsourced the internal audit function to RSM Ethos Pte Ltd. The internal auditors report to the
Chairman of the AC and the scope of work will be agreed with the AC on an annual basis, which is generally to
conduct investigations to establish if there is any fraud or irregularity, or failure of the risk management and internal
control systems, or infringement of any law, rule or regulation which has or is likely to have a material impact on the
Company’s operating results or financial position. The internal auditors have access to all the Company’s documents,
records, properties and personnel, including access to the AC. The AC approves the hiring, removal, evaluation and
compensation of the internal auditors.
The Board relies on internal audit reports and the management letter prepared by the external auditors to report
on any material non-compliance or internal control weaknesses. For the financial year under review, based on the
risk management systems and internal controls established and maintained by the Group, work performed by the
internal and external auditors, and reviews performed by management, various Board committees and the Board, the
AC and the Board are of the opinion that the Group’s risk management and internal controls, addressing financial,
operational, compliance and information technology risks, were adequate and effective as at 30 June 2015.
30
AVI-TECH ELECTRONICS LIMITED
| ANNUAL REPORT 2015
CORPORATE
GOVERNANCE
