Asia-Pacific Strategic Investments Limited - Annual Report 2021

Corporate Governance Report

The Board has received assurance from the CEO and Chief Operating Officer (who also oversees the finance function of the Group):

1. that the financial records have been properly maintained and that the financial statements give a true and fair view of the Company’s operations and finances; and

2. adequate and effective risk management and internal control systems have been put in place.

At present, the Board relies on the internal auditor, the external audit reports and management letter prepared by the external auditor to highlight any material non-compliance or weaknesses in internal control. There were no major weaknesses in internal controls highlighted by the Group’s external auditor or the internal auditor for the attention of the AC for financial year ended 30 June 2021. Based on the internal controls established and maintained by the Group, work performed by the internal and external auditors, and reviews performed by Management, various Board Committees and the Board, the Audit Committee and the Board are of the opinion that the Group’s internal controls are adequate and effective to address financial, operational, compliance and information technology risks, and that risk management systems are adequate and effective in the Group’s current business environment.

Audit Committee

Principle 10: The Board has an Audit Committee which discharges its duties objectively.

The Audit Committee (the “AC”) is comprised entirely of independent non-executive directors, namely:

Lien Kait Long (Chairman) Dr Lam Lee G (Member) Chew Soo Lin (Member)

The Board considers that the members of the AC are appropriately qualified to discharge their responsibilities. All members of the AC have many years of experience in senior management positions and have accounting or related financial management expertise and experience. None of the AC members were previous directors of the Company’s external auditing corporation within the last two years and none of the AC members hold any financial interest in the external auditing corporation.

The AC is scheduled to meet at least two times a year. The AC is regulated by a written set of terms of reference and has carried out its duties, according to the terms of reference as follows:

1. reviewing the audit plans and reports of the Company’s internal and external auditors;

2. reviewing the financial statements before submission to the Board for approval, focusing in particular, on changes in accounting policies and practices, major risk areas, significant adjustments resulting from the audit, the going-concern statement and compliance with accounting standards as well as compliance with any stock exchange and statutory/regulatory requirements; 3. reviewing internal controls and procedures and ensuring co-ordination between the external auditors and Management, reviewing the assistance given by Management to the auditors, and discussing problems and concerns, if any, arising from the interim and final audits, and any matters that auditors might wish to discuss (in the absence of Management where necessary);

ASIA-PACIFIC STRATEGIC INVESTMENTS LIMITED

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