Asia-Pacific Strategic Investments Limited - Annual Report 2021

Corporate Governance Report

The Company does not have any whistle-blowing policy. However, staff of the Company was informed about various avenues, including the chairman of the AC, to report on possible improprieties in matters of financial reporting or other matters. For the financial year ended 30 June 2021, there were no complaints, concerns of issues received by the AC.

During the financial year ended 30 June 2021, the AC reviewed and approved the internal and external audit plans and financial results. The AC met once with the external and internal auditors without the presence of Management.

Having regard to the adequacy of the resources and experience of the auditing firm and the audit engagement director assigned to the audit, the firm’s other engagements, the size and complexity of the Group being audited, and the number and experience of supervisory and professional staff assigned to the particular audit, the Board and the AC are of the opinion that a suitable auditing firm has been appointed to meet the auditing obligations of the Company and its significant subsidiaries. The Company has complied with Rules 712 and 715 of the Catalist Rules.

The AC assesses the independence of the external auditor annually. The aggregate amount of fees paid to the external auditor for the financial year ended 30 June 2021 was:

S$’000

Audit fees

85

Non-audit fees

7

Total fees

92

The AC has reviewed the non-audit services rendered by the external auditor for the financial year ended 30 June 2021, and is satisfied that the nature and extent of such services has not impaired the independence and objectivity of the external auditor. Having reviewed, amongst others, the scope and quality of the audit and the independence of the external auditor, the AC recommended and the Board approved that Nexia TS Public Accounting Corporation be nominated for re- appointment as external auditor of the Company at the forthcoming AGM. The Company has established an internal audit function that is independent of the activities it audits. The internal audit function has unfettered access to all the Company's documents, records, properties and personnel, including the AC, and has appropriate standing within the Company. As recommended by the AC, the Company has outsourced the internal audit function to an independent corporation, Crowe Horwath First Trust Risk Advisory Pte Ltd (“Crowe Horwath”). The AC approves the appointment, termination, evaluation and compensation of the internal auditor. The internal auditor reports to the Chairman of the AC on audit matters and to the CEO for administrative matters. The internal audit plan was approved by the AC and the results of the audit findings were submitted to the AC for its review. The AC reviews annually the scope and results of the internal audit. During the financial year ended 30 June 2021, Crowe Horwath reviewed key internal controls in selected areas as advised by the AC and reported its findings together with recommendations on areas for improvement to the AC for review and approval, so as to improve the development of better and more effective internal controls. The AC is satisfied that the Group’s internal audit function is independent, effective and adequately resourced, and has appropriate standing within the Group. The AC is also satisfied that the internal auditor meets the standards set by internationally recognised professional bodies, including the International Standards for the Professional Practice of Internal Auditing set by The Institute of Internal Auditors. Internal Audit

ASIA-PACIFIC STRATEGIC INVESTMENTS LIMITED

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