inter roller fa final

Report on Corporate GovernanceAudit Committee (“AC”) - Principles 10 to 15The AC comprises of the following members, all of whom are independent directors:Member of Audit CommitteeNo. of Meetings AttendedMr. Rajan Menon, Chairman 5Mr. Haider M. Sithawalla 5Mr. Chan Chin Wah (deceased on 27 April 2004) -Mr. Loh Chin Hua 4The Audit Committee met five times in the financial year 2004 to discharge the following delegated functions:(a)(b)(c)(d)(e)(f)Reviewed with external auditors their audit plan and scope of audit examination;Reviewed with external and internal auditors their evaluation of the Group’s internal controls, together withmanagement response;Reviewed the assistance given to the external and internal auditors by the Company’s officers;Reviewed the financial statements of the Company and the Group before submission to the Board for approvaland the report of the external auditors.Recommended the appointment and the remuneration of external auditors;Reviewed interested person transactions.The AC has full access to and cooperation by management and has full authority to require the attendance of any staffor directors at its meetings. The AC also meets with the external auditors without the presence of management staff.Internal Audit FunctionThe internal auditor performs regular financial audits. Tests are conducted to verify the Company’s assets and liabilities,and also to check for compliance with the Company’s system of internal controls. This comprises the proceduresthat combine to give the Board of Directors reasonable assurance of the maintenance of proper accounting records,and the reliability of financial information used within or published by the Company. The internal auditor reports to theChairman and has full access to the Audit Committee. All reports of the Internal Audit are made available to the AuditCommittee. The Audit Committee has full access to the external and internal auditors and may assign them anyspecific tasks in relation to their functions.ISO 9001 Quality SystemThe Company is ISO 9001 certified since 1996. The system has evolved into the business process approach when itwas fully converted to ISO 9001:2000 in the year 2002. The continuous improvement of our operating systems hasenabled the Company to improve its competitiveness internationally.76 inter-roller engineering limited annual report2004