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CapitaLand Mall Trust
Annual Report 2015
Corporate Governance
The Board has received assurance from the CEO and the Head, Finance of the Manager that:
(a) the financial records of CMT Group have been properly maintained and the financial statements for the year
ended 31 December 2015 give a true and fair view of CMT Group’s operations and finances; and
(b) the system of risk management and internal controls in place for CMT Group is adequate and effective in
addressing the material risks faced by CMT Group in its current business environment including material
financial, operational, compliance and information technology risks. The CEO and the Head, Finance of the
Manager have obtained similar assurances from the respective risk and control owners.
In addition, in FY 2015, the Board has received quarterly certification by Management on the integrity of financial
reporting and the Board has provided a negative assurance confirmation to Unitholders as required by the Listing
Manual.
Based on the ERM Framework established and the reviews conducted by Management and both the internal
and external auditors, as well as the assurance from the CEO and the Head, Finance of the Manager,
the Board concurs with the recommendation of the AC and is of the opinion, that the system of risk management
and internal controls addressing material financial, operational, compliance and information technology risks
established by the Manager is adequate and effective to meet the needs of CMT Group in its current business
environment as at 31 December 2015.
The Board notes that the system of risk management and internal controls established by the Manager provides
reasonable, but not absolute, assurance that CMT Group, as it strives to achieve its business objectives, will not be
significantly affected by any event that can be reasonably foreseen or anticipated. The Board notes that no system
of risk management and internal controls can provide absolute assurance in this regard, or absolute assurance
against poor judgement in decision making, human error, losses, fraud or other irregularities.
Audit Committee
Principle 12:
The Board should establish an Audit Committee with written terms of reference which clearly set
out its authority and duties.
All the members of the AC, including the Chairman of the AC, are IDs. The members bring with them invaluable
recent and relevant managerial and professional expertise in accounting and related financial management
domains.
The AC has explicit authority to investigate any matter within its terms of reference. Management is required to
provide the fullest co-operation in providing information and resources, and in implementing or carrying out all
requests made by the AC. The AC has direct access to the internal and external auditors and full discretion to
invite any Director or executive officer to attend its meetings. Similarly, both the internal and external auditors are
given unrestricted access to the AC.
The AC is guided by its terms of reference, in particular, the AC:
(a) reviews the significant financial reporting issues and judgements so as to ensure the integrity of the financial
statements of CMT Group and any announcements relating to CMT Group’s financial performance;
(b) reviews and reports to the Board at least annually the adequacy and effectiveness of the Manager’s
internal controls, including financial, operational, compliance and information technology controls, and risk
management systems;
(c) reviews the effectiveness of the Manager’s internal audit and compliance functions;
