(b) reviews the significant financial reporting issues and judgements so as to ensure the integrity of the financial statements of ECW Group and any announcements relating to ECW Group’s financial performance; (c) reviews and reports to the Board at least annually the adequacy and effectiveness of the Manager’s internal controls, including financial, operational, compliance and information technology controls, and risk management systems; (d) reviews the adequacy and effectiveness of the Manager’s internal audit and compliance functions; (e) reviews the scope and results of the external audit and independence and objectivity of the external auditors; (f) makes recommendations to the Board on the proposals to Unitholders on the re-appointment of the external auditors, and approving the remuneration of the external auditors; (g) reviews and approves processes to regulate transactions involving an Interested Person (as defined in Chapter 9 of the Listing Rules) and/or Interested Party (as defined in the Property Funds Appendix) (each, an Interested person) and ECW and/or its subsidiaries (Interested Person Transactions) to ensure compliance with the applicable regulations, in particular, the requirements that the transactions are on normal commercial terms and are not prejudicial to the interests of ECW and its minority Unitholders and, in respect of any property management agreement which is an Interested person or Interested party transaction, the requirement that reviews of the Property Manager’s compliance with the terms of the property management agreement and any remedial actions taken, where necessary, are carried out at intervals commensurate with the tenure of such agreement; (h) reviews the policy and arrangements by which employees of the Manager and any other persons may, in confidence, report suspected fraud or irregularity or suspected infringement of any laws or regulations or rules, or raise concerns about possible improprieties in matters of financial reporting or other matters with a view to ensuring that arrangements are in place for such concerns to be raised and independently investigated, and for appropriate follow-up action to be taken; (i) reviews the procedures implemented to ensure the legal and regulatory compliance of ECW’s financing activities in the applicable jurisdiction; (j) reviews the Master Lessees’ performance of their obligations under such agreements, including deliberating and assessing whether the renewal of such agreements is in the interest of ECW and its Unitholders prior to time for renewal; (k) reviews the Sponsor’s compliance with various undertakings given in respect of the relevant issues until such time that the Deeds of Indemnity are terminated in accordance with their terms; and In FY2024, the ARC discussed with Management and the external auditors on significant financial reporting matters, in particular the Key Audit Matter associated with valuation of investment properties. The valuation of investment properties has considered all the relevant facts and circumstances in arriving at the basis of valuation. These include the methodologies and key assumptions applied by the valuers in arriving at the valuation of ECW’s properties. The ARC also considered the findings of the external auditors, including their assessment of the appropriateness of valuation methodologies and the underlying key assumptions applied in the valuation of ECW’s properties. The ARC concurs with the conclusion of the Management and the external auditors on the valuation of investment properties. The aggregate amount of fees paid and payable to the external auditors for FY2024 was approximately S$390,000 which was solely related to provision of audit services. There was no non-audit fee in FY2024. The external auditors have also provided confirmation of their independence to the ARC. The ARC is satisfied that the independence of the external auditors. BDO’s appointment as external auditors of EC World REIT was approved during the Extraordinary General Meeting (“EGM”) held on 20 December 2024 and to hold office until the conclusion of the next Annual General Meeting (“AGM”). BDO had indicated that they will seek their re-appointment at the AGM. EC WORLD REIT 56 CORPORATE GOVERNANCE
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