notes to the financial statements - Investor Relations

CORPORATE GOVERNANCE
Annual Report 2011
With regard to the remuneration of key management personnel, there are both fixed and variable components, with the latter being
tied to organisational and business units’ performance. The overall average fixed and variable components paid to key management
personnel, including the Executive Director, in FY2011 were respectively 51% and 49%. A summary on the remuneration range
corresponding to the number of key executives is provided below:
Annual Remuneration Number of Executives
More than S$3,750,000 1
S$1,000,000 to S$1,250,000 2
S$500,001 to S$750,000 4
S$250,001 to S$500,000 5
The Group CEO is the son of the Chairman. His remuneration package falls in the highest band above and 78% of his package is
variable.
Presently, the Company does not have any employee share scheme.
ACCOUNTABILITY AND AUDIT
Accountability (Principle 10)
The Board, through its announcements of quarterly and full-year results, aims to provide shareholders with a balanced and
understandable assessment of the Company’s performance and prospects. Results for the first three quarters are released to
shareholders within 45 days of the end of the quarter. Annual results are released within 60 days of the financial year end.
Management provides the EXCO with a monthly financial and operational report within 20 days from the end of the relevant reporting
period. Monthly meetings are conducted involving Senior Management and the business unit heads. In addition, Management also
provides Directors with a quarterly financial management report, which includes the quarterly management accounts, other financial
statements and an analysis of those accounts and an update of business and development projects. The report is submitted within
45 days of the quarter end.
The Company has clear policies and guidelines for dealings in securities by Directors and employees, as recommended by the SGX-
ST’s Best Practices Guide. Directors and employees are cautioned to observe the insider trading laws at all times.
Risk Management and Internal Controls (Principle 11)
The Group carries out periodic assessments of risks and controls to ensure the adequacy of financial and operational controls and
compliance with those policies, procedures and controls.
The Audit Controller, who reports directly to the Audit Committee, conducts regular audit of internal control systems of the group
companies and recommends necessary improvements and enhancements.
The Company’s auditors, KPMG, also carry out a review of the internal controls to the extent that these are relevant to the preparation
of true and fair financial statements. The Audit Committee also reviews the audit plans and findings of the external auditors including
performance improvement observations noted by the auditors in connection with their audit.
In addition, the Audit Committee reviews the actions taken by Management to address findings by both the internal and external
auditors.
Based on the above, the Board of Directors is satisfied that there are adequate internal controls in the Group. The AC expects the
risk assessment process to be a continuing process.
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