Basic HTML Version
73
Glorious Property
Annual Report 2011
Internal Controls
The Board is responsible for overseeing the Company’s system of internal control and is committed to managing
business risks and maintaining a sound and effective internal control system to safeguard the shareholders’ investment
and the Company’s assets. The management is responsible for designing and implementing the internal control system
to achieve the aforesaid objectives.
Under its terms of reference, the Audit Committee performs review of the Company’s financial controls, internal control
and risk management systems and is responsible for discussing with the management the Company’s internal control
system.
During the Review Period, the Directors, through the Audit Committee as well as by themselves, conducted periodic
reviews of the effectiveness of the Company’s internal control system, including financial, operational and compliance
controls and risk management functions, and the adequacy of resources, qualifications and experience of the staff of the
Company’s accounting and financial reporting functions. The Directors generally satisfied with the effectiveness of the
Company’s internal control system.
The internal audit department of the Company performs regular audit reviews and report of the key controls of the
Company to the Board and the Audit Committee. The responsible heads of departments will be notified of the control
deficiencies noted for rectification.
To maintain an effective internal control system, all departments of the Company have formulated operational
management guidelines, which clearly define the functions and responsibilities of each department and scope of power
of each position.
External Auditor
The Company has engaged PricewaterhouseCoopers (“PwC”) as its external auditor. In order to maintain PwC’s
independence and objectivity and the effectiveness of the audit process in accordance with the applicable standards,
the Audit Committee, under its terms of reference, pre-approves all audit services to be provided by PwC and discusses
with PwC the nature and scope of their audit and reporting obligations before the audit commences.
The aggregate remuneration in respect of services provided by PwC for the year ended 31 December 2011 was
RMB10.2 million, of which RMB7.3 million represents annual audit fees and RMB2.9 million represents fees for certain
audit related services.
Directors’ Securities Transactions
The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”) as
set out in Appendix 10 to the Listing Rules as its own code of conduct regarding securities transactions by the Directors.
All Directors have confirmed, following specific enquiries being made by the Company, that they have complied with
the required standard set out in the Model Code throughout the Review Period.