The AC reviews the audit and the nonaudit fees paid to the external auditors and was satisfied that the non-audit services provided by the external auditors did not compromise their independence. The Company confirms that it has complied with Rules 712 and 715 of the SGX-ST Listing Manual in relation to the engagement of its auditors. During the year, the AC held six meetings, including a joint meeting with the RSC to review significant risks of the Company and related key controls. The AC also met with the external auditors, and with the internal auditors, in each case without the presence of Management, during the year. The AC reviewed the financial statements of the Group with the external auditors and Management before the announcement of the Group’s half-yearly and full-year results. Amongst the matters discussed, the following significant matters having an impact on the financial statements were considered by the AC in relation to their materiality and appropriateness in approach, methodology and assessment: Significant matters How the AC reviewed these matters Impairment assessment of nonfinancial assets – goodwill The AC reviewed the reasonableness of cash flow projections, as well as the long-term growth rates used in valuation models for the assessment of goodwill and intangible asset impairment. The AC also reviewed the stress testing of the valuations and their sensitivity to changes in key assumptions used in the valuation models. Revenue recognition based on stage of completion The AC reviewed the accounting and reporting processes applied by the Group in the recognition of revenues and profits from contracts with customers to ensure that the estimates used in determining the amount of revenue and costs recognised for the performance obligations were appropriate. The key audit matters (KAMs) that were raised by the external auditors for the financial year ended 31 December 2024 have been addressed by the AC. The KAMs in the audit report for the financial year ended 31 December 2024 can be found on pages 123 to 124 of this Annual Report. The AC has concluded that the accounting treatment and estimates used by the Group are appropriate for the above significant matters. The AC was kept regularly updated on relevant changes in accounting standards and their implications on the financial statements. Whistleblowing Policy The AC has reviewed the ST Engineering Whistleblowing Policy and is satisfied with the procedures through which employees and other stakeholders may, in confidence, raise concerns about possible improprieties in business conduct, financial reporting, or other matters without the fear of reprisals. No form of retaliation to the informant (internal or external) is tolerated for any report made in good faith. As far as practicable, reasonable and appropriate actions, subject to applicable laws, are taken to protect whistleblowers who raise a concern in good faith. Appropriate disciplinary action will be taken against employees who retaliate against the whistleblower. ST Engineering is committed to conducting business with integrity and adopts a zero-tolerance attitude towards any malpractice, impropriety, statutory non-compliance and/or any wrongdoing by Board members, employees, and any other parties with a business relationship with the Group. 101 CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT
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