OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX External Auditors The Board evaluates the performance of the external auditors and is satisfied with the quality of the work carried out by the external auditors. No former partner or director of the Group’s existing auditing firm or auditing corporation is a member of the Board. In reviewing the nomination of KPMG for re-appointment for the financial year ended 31 December 2023, the Board has taken into consideration the adequacy of resources, experience, and competence of KPMG, as well as the quality of audits performed. Satisfied that KPMG has demonstrated appropriate expertise and is adequately resourced, the Board has recommended the re-appointment of KPMG as the Group’s external auditors. Internal Auditors The Internal Audit function assists the Board in providing an independent and objective evaluation of the adequacy and effectiveness of the system of internal controls. It also performs reviews to examine the safeguarding of assets, the timeliness and accuracy in the recording of transactions, compliance with relevant laws, regulations and policies established by the Group, as well as the steps taken by Management to address control deficiencies. The team adopts a risk-based methodology in drawing up the IA Plan. The IA Plan is planned in consultation with, but independently of, Management. Key considerations for the IA Plan include risk exposures, operating concerns and compliance with regulations, policies, and procedures. The IA Plan includes, amongst others, the audit scope, objectives, and resources to be allocated for the audits. The IA Plan is submitted to the Board for review and approval to ensure that the audit scope set out in the IA Plan is sufficient to review the significant risks and internal controls of the Group. The internal controls comprise financial, operational and compliance. All internal audit reports, containing identified issues and corrective action plans, are submitted to the Board for deliberation, with copies of these reports extended to the Executive Chairman and CEO, and relevant Management. The Internal Audit function follows up regularly with Management on the action plans and ensures that proposed action plans have been adequately completed. The Internal Audit function is staffed with persons with the relevant qualifications and experience. For the year under review, the Board is satisfied that the Internal Audit function was independent, effective, adequately resourced and has appropriate standing within the Group. Conduct of Business The Board and Management are committed to conducting business with integrity that is consistent with high standards of business ethics, as well as in compliance with all applicable laws and regulatory requirements. The Group has in place internal policies on employees’ conduct, corporate gift guidelines, and grievance handling procedures. These policies crystallise the Group’s business principles and practices that are expected of its employees with respect to matters which may have ethical implications, such as corruption, bribery, conflicts of interest, misappropriation of assets, violation of law and regulations, non-compliance with other policies and procedures, abuse of position, and other misconduct. Relevant policies are posted on the Group’s intranet and communicated to all employees and aim to provide direct and understandable frameworks for employees to observe the Group’s principles, such as integrity, honesty, and responsibility, at all levels of the organisation. All employees are required to make an ongoing effort to learn about and keep up to date with the content relevant to their duties, guidelines that apply to them and any changes that are made to the guidelines. Whistleblowing Policy The Group’s Whistleblowing Policy provides employees and parties who have dealings with the Group with well-defined procedures and accessible and trusted channels to raise concerns about suspected fraud, corruption, dishonest practices or other probable improprieties in the workplace without fear of reprisals in any form within the limits of the law. The Whistleblowing Policy is intended to provide a trusted avenue for the Group’s employees and other parties to come forward and report such concerns with confidence that their concerns will be independently investigated, and appropriate follow-up actions will be taken. The Whistleblowing Policy and procedures, together with the dedicated whistleblowing communication channel, are disseminated to all employees and also posted on the Group’s website, accessible at https://www.perennialholdings.com/. The Group’s secure and protected whistleblowing communication channel includes a dedicated and independent e-mail account that is only accessible by the Executive Chairman and CEO, and Ms Teo La-Mei. The Board is guided by the Whistleblowing Policy to ensure proper and independent conduct of investigations under strict confidentiality. The Policy also allows for appropriate closure actions to be executed upon completion of investigations. These actions include administrative, disciplinary, civil and/or criminal actions and remediation of control weaknesses that allowed the fraud or misconduct to be perpetrated, thereby preventing recurrences. Fraud, Bribery and Corruption Risk Management The Group is committed to doing business with integrity. This is reflected in its longstanding zero tolerance stance against fraud, bribery and corruption. Consistent with this commitment, guidelines are in place to ensure all employees of the Group uphold the highest standards of integrity in their work and business dealings. The Group’s zero tolerance stance on bribery and corruption extends to its business dealings with third parties. Anti-Money Laundering and Countering the Financing of Terrorism Measures The Group has implemented procedures to safeguard its services from being used to launder the proceeds of crime or as a conduit for terrorism financing, as required under the Housing Developers (Control and Licensing) Act 1965, Housing Developers (Anti-Money Laundering and Terrorism Financing) Rules 2023, Sale of Commercial Properties Act 1979, Sale of Commercial Properties (Anti-Money Laundering and Terrorism Financing) Rules 2023, Estate Agents Act 2010 and Estate Agents (Prevention of Money Laundering and Financing of Terrorism) Regulations 2021. The Group’s policy and 137 ANNUAL REPORT 2023
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