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Corporate Governance Rating |
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Enterprise Governance |
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Enterprise Risk Management |
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Audit Committee Report |
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Remuneration Committee Report |
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Nomination Committee Report |
| audit committee report |
| The Audit Committee is established for the purpose of assisting the Board in fulfilling their oversight responsibilities regarding the integrity of the Financial Statements, risk management, internal control and compliance with legal & regulatory requirements, review of external auditor’s performances & independence and internal audit function.
The Audit committee is formally constituted as a Sub-Committee of the Main Board, to which it is accountable. The followings are the principal activities carried out by the Audit Committee during the year ended 31st March 2008. Compliance with Financial ReportingThe Committee considered the quarterly and annual Financial Statements and reviewed the Annual Report including the Financial Statements prior to publication.The review included: • Any changes in accounting policies. • Compliance with Accounting Standards. • Adequacy of provisions against possible losses. • Material changes arising from the audit. Meetings of Audit CommitteeSix meetings were held during the year 31st March 2008. The meeting dates and attendance details are given in the Enterprise Governance section . The Internal Auditors attend meeting quarterly.Risk ManagementThe Audit Committee regularly reviews the Company’s risk management procedures and continuously monitors the effectiveness of risk strategy employed to mitigate the risk. The areas covered include• regular review of country situations • setting of suitable exposure limit • having a contingency plan in place Compliance with Laws & Statutory PaymentsThe Audit Committee was submitted reports by the management and internal auditors on the states of compliance with laws, filing of statutory returns and making of statutory payments.Internal ControlsThe Committee is satisfied that an effective system of internal control is in place to provide reasonable assurance on the safeguarding of the Company’s Assets and reliability of Financial Statement produced. Effectiveness of Company’s system of internal controls is evaluated through reports furnished by Internal Auditors, External Auditors and the management.Internal AuditorsThe internal audit function is outsourced to Messrs. SJMS Associates, a firm of Chartered Accountants which represents Messrs Deloitte Touche Tohmatsu in Sri Lanka. Internal Auditors directly submitted their findings to Audit Committee quarterly and their reports are made available to External Auditors.The Audit Committee monitors and reviews: • the follow-up action taken on the recommendation of the Internal Auditors • the Internal Audit programmes and results of the internal audit process • effectiveness of the internal audit function External AuditorsThe Audit Committee reviews the independence and objectivity of the External Auditors and conduct a formal review of the effectiveness of external audit process. The Audit Committee has met with the External Auditors to review the Financial Statements during the annual audit.The committee revived the non-audit services and its impact on the independence of the External Auditors. The Audit Committee has approved the extension of current External Auditors, by one year, and recommended to the Board the re-appointment. Audit Committee PerformanceThe annual performance of Audit Committee was evaluated by other members of the Board of Directors and was deemed to be satisfactory.ConclusionThe Audit Committee is satisfied that the effectiveness of the organisational structure of the Group and of the implementation of the Group’s accounting policies and operational controls provide reasonable assurance that the affairs of the Group are managed in accordance with Group policies and that Group assets are properly accounted for and adequately safeguarded. R. Seevaratnam Chairman, Audit Committee Colombo 9th May 2008 |