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ACCOUNTABILITY AND AUDIT
COCG Code Principle 10: Accountability
The Board of the Trustee-Manager is responsible for providing a balanced assessment of Forterra’s performance,
position and prospects, including interim and other price sensitive public reports and reports to regulators,
if required. Management provides the Board with quarterly reports on Forterra’s performance, position and
prospects. These reports consist of detailed management accounts, actual versus budgets, cashflow reports,
portfolio performance information and economic information relating to the Chinese economy. In addition to
this, ad-hoc reports are provided to the Board by management from time to time on matters considered to be
of importance, and management work with the Board to answer any queries or provide additional information
as may be requested by the Board.
Financial reports and other financial and non-financial information are disseminated to Unitholders through
announcements via SGX-ST, press releases, Forterra’s website, media and briefings to analysts. The annual
report for Forterra will be sent to Unitholders no later than four months from the end of each financial year.
COCG Code Principle 11: Risk Management and Internal Controls
The Board of the Trustee-Manager is responsible for the governance of risk and for setting the risk tolerance
levels of the Board. To ensure that a sound system of risk management and internal controls are in place to
safeguard Unitholders’ interests and Forterra’s assets, as well as determining the nature and extent of the
significant risks which the Board is willing to take in achieving the strategic objectives of Forterra, the Board,
with the assistance of a third party engaged to review the internal control system, has developed a Risk
Governance and Internal Control Framework Manual. The manual will be reviewed annually by the Board as part
of their assessment of the adequacy and effectiveness of the risk management and internal control systems.
As part of the approval process of the 2012 Annual Report, the Board has received assurance from the CEO
and CFO:
(a) that the financial records have been properly maintained and the financial statements give a true and fair
view of Forterra’s operations and finances; and
(b) regarding the effectiveness of Forterra’s risk management and internal control systems.
Management will conduct internal audits of the policies and procedures within the Risk Governance and Internal
Control Framework Manual to ensure the manual is complied with. The findings of these audits will be reported
to the Board and Audit Committee on a quarterly basis.
The Board is assisted in assessing the internal controls by the Audit Committee whose responsibility, inter-
alia, is to monitor and evaluate the compliance of principal internal control systems and procedures and risk
management systems established by management of the Trustee-Manager and the Property Manager and
the effectiveness of these internal controls and risk management system. A review of the internal controls is
undertaken annually as part of the internal audit program. The external auditors assess the findings of these
reviews as part of their annual audit.
In accordance with the SGX-ST Listing Rule 1207(10), the Board, with the concurrence of the Audit Committee,
are of the opinion that Forterra and the Trustee-Manager currently have an adequate internal control system
in place addressing financial risk, operational risk and compliance risk. In addition they are of the opinion that
the internal control system provides reasonable assurance that Forterra’s assets are safeguarded, laws and
regulations are complied with and that the financial reporting is reliable.