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FORTERRA
ANNUAL REPORT 2013
CORPORATE GOVERNANCE
REPORT
47
In accordance with the SGX-ST Listing Rule 1207(10), the Board, with the concurrence of the Audit
Committee, is of the opinion that Forterra currently has an adequate internal control system in place
addressing financial, operational, compliance and information technology risks, as well as the risk
management systems. 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.
Whilst no system can provide absolute assurance against material loss or financial mis-statement,
Forterra’s internal financial controls are designed to provide reasonable assurance that assets are
safeguarded, that proper accounting records are maintained, and that financial information used
within the business and for publication is reliable. In designing these controls, the Board has regard
to the risks to which the business is exposed, the likelihood of such risks occurring and the costs of
protecting against them.
Financial risk management is highlighted in Note 29 of the Annual Report.
Principle 12: Audit Committee
The Audit Committee is appointed by the Board and comprises five (5) non-executive members,
all of whom (including the Chairman of the Audit Committee) are independent from management
and business relationships with the Trustee-Manager and from every substantial shareholder of the
Trustee-Manager. The members of the Audit Committee are:
1.
Mr. Paul Cheng
(Chairman, appointed on 10 October 2013)
2.
Mr. John Lim
(appointed on 10 October 2013)
3.
Mr. John Lee
(appointed 10 October 2013)
4.
Dr. Tan Khee Giap
5.
Mr. Yoon Wai Nam
Mr. Graham Sugden and Mr. Steven Xu resigned as directors of the Trustee-Manager on 10 October
2013 and ceased to be chairman and member of the Audit Committee respectively, on the same day.
The Board is of the view that the Audit Committee has sufficient management expertise and experience
amongst its members to discharge the functions of the Audit Committee. The Audit Committee may
invite any director or management staff to attend its meetings and according to internal guidelines,
may seek independent professional advice where appropriate, in furtherance of their duties.
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