COVER SHEET - 2Go

General Assessment of Internal Controls
The framework of control, risk management and governance processes are generally sound, adequate
and working effectively within the ATS group of companies.
The culture of accountability is apparent with the general adherence of employees to management
policies and directives in order to achieve company objectives.
The internal control system is effectively designed to safeguard assets; to secure the relevance,
reliability and integrity of information and as far as possible the completeness and accuracy of
records; and to ensure compliance with statutory requirements.
For 2010, while most business units posted increases in their audit ratings compared to the previous
year, the less-than-satisfactory results of the supply chain finance and SAP systems audits pulled
down the total group average rating.
Various measures are being undertaken by management including organizational restructuring across
all business units to allow streamlining of functions for the effective execution of responsibilities.
Continuous enhancement of performance metrics, strict implementation of KPI monitoring, and
speedy resolution of audit issues raised are likewise given focus to assure company objectives are
met.
Moving forward, ATS management is responsible in maintaining the internal control system and
ensuring that resources are properly applied in the manner and to the activities intended.
The AudCom is pleased to note that the business units have been proactive in addressing
recommendations with regards to the enhancement of the internal control environment.
Risk Management
Risk management is fast becoming an ingrained concept and way-of-life in the organization. However,
the establishment of a comprehensive Business Continuity Plan remains a major area that needs top
management support and directive to see it to completion.
Corporate Governance
Good corporate governance is practiced not because it is required by law but because it promotes ATS
core values of transparency, openness, and accountability. For ATS, corporate governance and a
value-oriented management are pillars of business resilience.
ATS’ adherence to good business practices is evidenced by the results of the annual nationwide
corporate governance scorecard conducted by the Institute of Corporate Directors. From a 70% rating
in 2007, the ATS score has improved to 90.3% (Silver Category).
External Audit
In July 2010, the AudCom endorsed for Board approval the renewal of SGV as the company’s external
auditor for the year 2010.
SGV and Co, the external auditor of ATS, provided an overview of the audit work to be conducted for the
2010 statutory audit during the November AudCom meeting. The audit work focused mainly on audits
of internal controls and how these safeguard the financial reporting including the financial statements
of the company.
42