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Glorious Property
Annual Report 2011
Corporate Governance Report
(Continued)
Audit Committee
The Board established an audit committee (“Audit Committee”) on 9 September 2009 with written terms of reference.
The Audit Committee comprises four members, namely Mr. Yim Ping Kuen, Mr. Liu Shun Fai, Mr. Wo Rui Fang and Mr.
Han Ping, all of whom are INEDs. Mr. Yim Ping Kuen has been appointed as chairman of the Audit Committee.
The main duties of the Audit Committee include the following:
1. making recommendations to the Board on the appointment, reappointment and removal of external auditors, and
approving the remuneration and terms of engagement of external auditors;
2. reviewing and monitoring the external auditors’ independence, objectivity and effectiveness of the audit process in
accordance with applicable standards;
3. monitoring the integrity of the Company’s annual and interim reports and accounts and reviewing significant
financial reporting judgements contained in such reports and accounts; and
4. overseeing the Company’s financial reporting system and internal control procedures.
Two meetings were held by the Audit Committee during the Review Period. The following is a summary of the work of
the Audit Committee during 2011:
1. Review of the annual results (including the announcement thereof) and the audited financial statements for the
year ended 31 December 2010;
2. Review of the interim results (including the announcement thereof) and the financial statements for the six months
ended 30 June 2011;
3. Review of the external auditor’s audit findings and other audit issues;
4. Review of the effectiveness of the internal control system; and
5. Review of the external auditor’s remuneration.
On 30 March 2012, the Audit Committee reviewed with the management of the Company the accounting principles
and practices adopted by the Group. The Group’s consolidated financial statements for the year ended 31 December
2011 have been reviewed and approved by the Audit Committee, and the Audit Committee is of the opinion that such
financial statements comply with the applicable accounting standards, the Listing Rules and all other applicable legal
requirements. The Audit Committee therefore recommended the Board’s approval of the Group’s consolidated financial
statements for the year ended 31 December 2011.