Before confirming an external auditors’ re-nomination, the AC will conduct an annual review of the independence of
the Company’s external auditors and the total fees for non-audit services compared with audit services, and satisfy
itself that the nature and volume of any non-audit services will not prejudice the independence and objectivity of
the auditors. During the financial year under review, the remuneration paid/payable to the Company’s external
auditors, Deloitte & Touche LLP, is set out below:
Service Category
Fees Paid/Payable $’000
Audit Service
118
Non-Audit Service
25
Total
143
The AC has reviewed the non-audit services provided by the external auditors, Deloitte & Touche LLP for FY15, and
is of the opinion that the provision of such services did not affect the independence or, objectivity of the external
auditors. The external auditors have affirmed their independence in this respect.
The AC had recommended the re-appointment of Deloitte & Touche LLP as external auditors of the Company at
the forthcoming AGM. The external auditors re-appointed for the Company’s subsidiaries are set out in the notes
to the financial statements found in this Annual Report.
In proposing to shareholders the re-appointment of Deloitte & Touche LLP as the external auditors to the Company
and in line with Rule 712 of the Listing Manual of the SGX-ST, the Board and the AC considered and are satisfied with
the adequacy of the resources and experience of the auditing firm and the audit engagement partner assigned to
the audit, the firm’s other audit engagements, the size and complexity of our Group being audited, and the number
and experience of supervisory and professional staff assigned to the particular audit; and Deloitte & Touche LLP
has confirmed that it is registered with the Accounting and Corporate Regulatory Authority.
To achieve a high standard of corporate governance for the operations of the Group, the Group has implemented
a Whistle-Blowing Programme. This programme will provide arrangements by which staff can raise concerns on
financial improprieties and other reporting matters.
Before the release of the Company’s quarterly results, the AC meets to review the results announcement together
with the external auditors of the Company prior to its recommendations to the Board for approval. Any changes to
accounting standards and issues which have a direct impact on financial statements will be raised at such meetings.
SHAREHOLDER RIGHTS & RESPONSIBILITIES
Principle 14: Shareholder Rights
Principle 15: Communication with Shareholders
Principle 16: Conduct of Shareholder Meetings
The Board is aware of its obligations to shareholders in providing information of changes in the Company or its
business which would be likely to materially affect the price or value of the Company’s shares.
32
AVI-TECH ELECTRONICS LIMITED
| ANNUAL REPORT 2015
CORPORATE
GOVERNANCE
