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Annual Report 2015
TEHO INTERNATIONAL INC LTD.
There are no termination, retirement and post-employment benefits that may be granted to
directors, CEO and executive officers of the Group.
ACCOUNTABILITY AND AUDIT
Accountability
Principle 10:
The board should present a balanced and understandable assessment of the
company’s performance, position and prospects.
For the financial performance reporting via the SGXNET to SGX-ST, and the annual report to
the shareholders, the Board has a responsibility to present a balanced and understandable
assessment of the Group’s performance, financial position and prospects to the public, including
interim and other price sensitive public reports and reports to regulators (if required).
The Board ensures that the management maintains a sound system of internal controls to
safeguard the shareholders’ investments and the Group’s assets.
The management will provide all members of the Board with management accounts of the
Group’s performance, with explanatory details on its operations. Board papers are given prior to
any Board meeting to facilitate effective discussion and decision-making.
The Board also announces the Group’s half-year results and performance review via the SGXNET
for the benefit of its shareholders.
Risk Management and Internal Controls
Principle 11:
The board is responsible for the governance of risk. The board should ensure that
management maintains a sound system of risk management and internal controls
to safeguard shareholders’ interests and the company’s assets, and should
determine the nature and extent of the significant risks which the board is willing
to take in achieving its strategic objectives.
The Company does not have a Risk Management Committee. However, the executive directors
and management regularly review the Group’s business and operational activities to identify areas
of significant business risks as well as appropriate measures to control and mitigate these risks.
Management reviews significant control policies and procedures and highlights the significant
matters to the Board and the AC. Furthermore, on AC’s recommendation, the Board had
appointed the Internal Auditors (as defined below) to conduct a Risk Management Assessment
of the Group.
The Board is responsible for the overall internal control framework and is fully aware of the need
to put in place a system of internal controls within the Group to safeguard shareholders’ interests
and the Group’s assets, and to manage risks.
On the recommendation of the AC, the chief financial officer takes on the additional duties of
a compliance officer and to co-ordinate and oversee the works of the Company’s professional
service providers.
Internal controls
On 22 July 2009, the Board, on the AC’s recommendation, selected and appointed Ernst &
Young Advisory Pte. Ltd. (“Internal Auditors”) to review, recommend, carry out subsequent follow-
up review on the Group’s internal control systems, and expand and enhance on its policies and
procedures manual under two phases. The first full cycle internal controls review and follow-up
reviews of the major areas of operations with direct consultations, presentations and reporting
made to the AC were completed in March 2012.
The Internal Auditors continued with its second full cycle internal controls review that spanned
over the financial years ended 30 June 2013 and 30 June 2014. The review was carried out for
the following major areas of operations of the Group under two phases:
Phase 1:
(a) Purchases, payables and payments (including purchase and safeguarding of fixed assets)
(b) Inventory management
(c) Financial close reporting
REPORT OF
CORPORATE GOVERNANCE
