Page 50 - TreasuryChinaTrust

Treasury China Trust Annual Report 2010 47

REPORT OF THE TRUSTEE-MANAGER

OF TREASURY CHINA TRUST

Audit Committee

The Audit Committee comprises four non-executive directors, three of whom are independent. The members of the Audit Committee during the financial period and as at the date of this report are:

Jen Shek Voon (Chairman of Audit Committee, Independent Director) Stuart Hamilton Leckie (Independent Director) Wong Fong Fui (Independent Director) Raymond Yeoman Frederick Horney

The Audit Committee carried out its function in accordance with Regulation 13(6) of the Singapore Business Trusts Regulations and the SGX-ST Listing Manual.

The Audit Committee has held 4 meetings for the financial period ended 31 December 2010. In performing its functions, the Audit Committee met with the Trust’s external auditors to discuss the scope and results of their audit and evaluation of the Group’s internal accounting control system.

The Audit Committee also reviewed the following:

• assistance provided by the Trustee-Manager’s officers to the external auditors;

• quarterly financial information and annual financial statements of the Group and the Trust prior to their submission to the Board of Directors of the Trustee-Manager; and

• interested person transactions, hedging policies and internal policies and procedures.

The Audit Committee has full access to management and is given the resources required for it to discharge its functions. It has full authority and the discretion to invite any director or executive officer of the Trustee-Manager to attend its meetings. The Audit Committee also recommends the appointment of the external auditors and reviews the level of audit and non-audit fees.

The Audit Committee is satisfied with the independence and objectivity of the external auditors and has recommended to the Board of Directors, the nomination of Messrs KPMG LLP for re-appointment as auditors of the Trust at the forthcoming Annual General Meeting of the unitholders.

Auditors

The auditors, KPMG LLP, have expressed their willingness to accept re-appointment.

For and on behalf of the Board of Directors of the Trustee-Manager

Richard Barrett

Director

Rory Williams

Director

Singapore 25 February 2011