Changes in Legislation (Indonesia)
A significant part of the Group’s facilities are in Batam, Indonesia. The business environment in
Indonesia is good and as has been the case for the last 8 years is getting even better. However,
if there is a reversal in this trend for political or other reasons, the Group’s business may be
adversely affected.
Currency Risk
Foreign currency exchange effects could be volatile. Examples include changes in the S$
against the US$, Euro and Indonesian Rupiah. Whilst the Group tries to bill in S$, the world
quotes in US$ and many specialist equipments is priced in Euro.
CEO AND CFO CERTIFICATION OF FINANCIAL STATEMENTS
The Board has received assurance from the Managing Director and the Chief Financial Officer
that:
(a) the financial records of the Group have been properly maintained and the financial
statements for the year ended 30 June 2015 give a true and fair view, in all material
respects, of the Group’s operations and finances; and
(b) the risk management and internal control systems (other than the subsidiary – VOSTA
LMG acquired in FY2013) are operating effectively in all material respects given its
current business environment. Certain internal control weakness that the external
auditors become aware of during the course of their audit for the financial year ended
30 June 2015 have been communicated to the AC. Management will follow up on the
external auditors’ recommendations in effort to strengthen the internal control system in
VOSTA LMG.
Based on the 1) framework of management controls in place, 2) reviews conducted by the
internal auditors and external auditors on the internal controls maintained by the Group and
3) assurance from the Managing Director and Chief Financial Officer at the direction of the
Board, the Board, with the concurrence of the AC, after carrying out an independent review,
is of the opinion that the Group’s system of internal controls that were in place as at 30
June 2015, addressing financial, operational, compliance, risk management systems and
information technology risks, were adequate.
Audit Committee
Principle 12: The Board should establish an Audit Committee (“AC”) with written terms
of reference which clearly set out its authority and duties.
The Board established the AC in March 2003 which currently consists of three independent
directors, namely, Mr Christopher Chong Meng Tak, Mr Andre Yeap Poh Leong and Mr Tan Sek
Khee. Mr Christopher Chong Meng Tak is the Chairman of the AC. The Board is of the opinion
that the members of the AC have considerable legal, tax and financial management expertise
and also business experience with which to discharge their duties. The operations of the AC
are regulated by its terms of reference, which were approved and are subject to periodic
review by the Board. The AC meets at least four times a year.
CORPORATE GOVERNANCE
REPORT
ASL Marine Holdings Ltd. /Annual Report 2015
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