BUILDING LANDMARKS, CHARTING GROWTH
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Annual Report 2015
other probable improprieties in the workplace.
The Whistle-blowing Policy is intended to provide a
trusted avenue for Perennial’s employees and other
parties to come forward and report such concerns
with confidence that it will be independently
investigated and appropriate follow-up actions taken.
The Whistle-blowing Policy will be reviewed by the
ARC annually and is in place to encourage good faith
reporting of any suspected improper conduct whilst
protecting the whistleblowers from reprisals within the
limits of the law. The Whistle-blowing Policy and
procedures are communicated via emails to all
employees and also posted on Perennial’s corporate
website. The secured and protected whistle-blowing
channel includes a dedicated and independent e-mail
account that is only accessible by the ARC as the ARC
recognises the importance of confidentiality in making
a whistle-blowing report.
The ARC is guided by the Whistle-blowing Policy
to ensure proper and independent conduct of
investigations under strict confidentiality, and execution
of appropriate closure actions following completion of
the investigations, including administrative, disciplinary,
civil and/or criminal actions, and remediation of control
weaknesses that perpetrated the fraud or misconduct
so as to prevent a recurrence. For the Period, no
whistle-blowing report was received.
Guideline 12.8 : Disclosure of ARC’s activities
During the Period, the ARC examined and reviewed
the following items:
• the quarterly and half-year results announcements
and financial statements prior to approving or
recommending their release to the Board, as
applicable;
• key areas of management judgment applied for
adequate provisioning and disclosure, critical
accounting policies and any significant changes
made that would have a material impact on the
financials;
• the risk management framework, risk profile,
risk tolerance levels, identified key risks and their
controls, key risk indicators, risk exposures and
the risk management action plans to be
implemented;
• the reports from external and internal auditors to
assess the adequacy and effectiveness of
Perennial’s internal controls;
• the annual audit plan of the external and internal
auditors and their independence and objectivity;
• the re-appointment of external and internal
auditors and their remuneration and terms of
engagement; and
• the list of interested person transactions and non-
audit services rendered by the external auditors.
For the Period, the ARC has reviewed the Whistle-
blowing Policy and met with external and internal
auditors without the presence of the Management. The
ARC has also taken active measures to keep abreast
of the changes to accounting standards and issues
which have a direct impact on financial statements.
The external auditors also highlighted changes in
accounting standards and issues during their quarterly
reviews with the ARC.
Guideline 12.9 : Exclusion from being member of
the ARC
No former partner or director of Perennial’s existing
auditing firm, KPMG LLP, was appointed as an ARC
member within 12 months commencing on the date of
the relevant member ceasing to be a partner of the
auditing firm or director of the auditing corporation and
in any case, for as long as he has any financial interest
in the auditing firm or auditing corporation.
INTERNAL AUDIT (GUIDELINE 13)
Guideline 13.1 : Independence of the internal audit
function
Perennial’s internal audit function is outsourced to Ernst
& Young Advisory Pte. Ltd. (“
EY
”), an International
Accounting Firm. The role of EY is to assist the ARC in
ensuring that Perennial maintains a sound system of
internal controls and their continued effectiveness
through regular monitoring and evaluation of key
controls and procedures.
EY reports directly to the ARC Chairman and has
unfettered access to all documents, records, properties
and personnel in Perennial, including unrestricted access
to the ARC. The ARC is responsible for approving the
hiring, removal, evaluation and compensation of the
auditing firm to which the internal audit function is
outsourced. For the Period, the ARC has reviewed and
approved the appointment of EY and the fees payable
to EY.
