Response to SGX Queries::
Issuer & Securities
BUND CENTER INVESTMENT LTD
BUND CENTER INVESTMENT LTD - BMG1792W1284 - MQ4
Response to SGX Queries
Date &Time of Broadcast
On Annual Reports
Submitted By (Co./ Ind. Name)
Kimberley Lye Chor Mei
Description (Please provide a detailed description of the change in the box below)
RESPONSE TO SGX-ST QUERIES ON ANNUAL REPORT 2015
Bund Center Investment Ltd (the "Company") sets out its response to the questions raised by the Singapore Exchange Securities Trading Limited ("SGX-ST") on 8 April 2016 in relation to the Company's Annual Report for the financial year ended 31 December 2015 ("Annual Report 2015"), as follows:-
Paragraph 11.3 of the Code of Corporate Governance 2012 (the "Code") states that the Board should comment on the adequacy and effectiveness of the internal controls, including financial, operational, compliance and information technology controls, and risk management systems, in the company's Annual Report.
As recommended in paragraph 11.3 of the Code and pursuant to Rule 710 of the Listing Manual, please make disclosures on the Board's comments on the effectiveness of the Company's internal controls, including financial, operational, compliance and information technology controls, and risk management systems or otherwise explain the reason(s) for the deviation from the following Code recommendations.
The Company wishes to clarify that based on the enterprise risk management ("ERM") framework established and maintained, the work performed by the ERM committee and the external and internal audit function as well as the assurance received from the CEO and the CFO, the Board with the concurrence of the Audit Committee, is of the opinion that the Group's internal controls including financial, operational, compliance and information technology controls, and risk management systems, were adequate and effective as at 31 December 2015 to meet the needs of the Group in its current business environment.
Paragraph 11.3 of the Code also states that the Board should also comment in the Company's Annual Report on whether it has received assurance from the CEO and the CFO regarding the effectiveness of the company's risk management and internal control systems.
Please make disclosures on the Board's comments or otherwise explain the reason(s) for the deviation from the following Code recommendations.
The Company wishes to clarify that the Board has received assurance from the CEO and the CFO regarding the effectiveness of the Company's risk management and internal control systems, based on the internal audit activities conducted in 2015.
It was disclosed that "each Director's remuneration is expressed in bands of S$250,000 rather than to the nearest dollar, given that remuneration continues to be a sensitive subject". Please elaborate on the Company's view on the above as a "sensitive subject" .
The Board views remuneration as a sensitive issue to the extent that it may encourage peer comparisons and lead to discontent.
By Order of the Board
Chew Yow Foo
12 April 2016