(c) Management is aware of their responsibilities for establishing, maintaining and evaluating the effectiveness of the risk management and internal control systems of the ECW Group; and (d) there are no known significant deficiencies or lapses in the risk management and internal controls systems relating to the ECW Group’s financial, operational, compliance and information technology controls which could adversely affect the ECW Group’s ability to record, process, summarise or report financial data, or of any fraud, whether material or not. Separately, the CEO and other KMP of the Manager also provide a written confirmation of the above items (c) and (d). (the written assurance and written confirmation collectively, the “Management Assurance Letters”) The Board has received the Management Assurance Letters duly signed by the CEO and the CFO. Other than the CFO, the Company has no other KMP. Based on the ERM Framework established and the reviews conducted by Management and both the internal and external auditors, as well as the Management Assurance Letters, the Board, with the concurrence of the ARC, is of the opinion, that the system of risk management and internal controls addressing material financial, operational, compliance and information technology risks established by the Manager is adequate and effective to meet the needs of ECW Group in its current business environment for FY2024. Audit and Risk Committee Principle 10: Establishment of Audit and Risk Committee with written terms of reference Composition of the ARC (Provision 10.2) The ARC comprises three IDs namely: Mr Chia Yew Boon* Chairman Dr Wong See Hong* Member Mr Li Guosheng Member * Mr Chia Yew Boon was re-designated as the ARC Chairman with effect from 13 November 2024 in place of Dr David Wong See Hong as part of the internal reshuffling of committee appointments within the Board and to facilitate succession planning of the Board. Dr Wong continues to remain as a member of the ARC. All three ARC members bring with them invaluable and relevant managerial and professional expertise in accounting and related financial management domains Former partner or Director of the Company’s existing auditing firm (Provision 10.3) In compliance with the Code, none of the ARC members is a former partner or Director of ECW’s existing external audit firm within the previous two years or who hold any financial interest in the auditing firm. Duties of ARC and Activities of the ARC (Provision 10.1) The ARC has explicit authority to investigate any matter within its terms of reference. Management is required to provide the fullest co-operation in providing information and resources, and in implementing or carrying out all requests made by the ARC. The ARC has direct access to the internal and external auditors and full discretion to invite any Director or executive officer to attend its meetings. Similarly, both the internal and external auditors are given unrestricted access to the ARC. In practice, all ARC meetings will be attended by the Group’s CEO and CFO so that they are better able to give a complete account of the issues being reviewed and answer questions from the ARC members. Where there are matters of potential sensitivity, Management will be asked to excuse themselves from the meeting so that the ARC may discuss matters openly. The ARC is guided by its terms of reference, which defines its duties and scope of authority and in line with the Code, term of reference was reviewed during the year. In particular, the duties of the ARC include the following which the ARC had carried out during the year: (a) reviews the annual audit plan, including the nature and scope of the internal and external audits before the commencement of the audits; ANNUAL REPORT 2024 55 CORPORATE GOVERNANCE
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