2011 Annual Report - Cargills (Ceylon)

14 Annual Report 2011Corporate governance contd.Corporate Governance RuleComplianceStatusDetailsIn a situation where both the parent company and the subsidiaryare ‘Listed Entities’, the audit committee of the parent companymay function as the audit committee of the subsidiary.However, if the parent company is not a Listed Entity, then theaudit committee of the parent company is not permitted to actas the audit committee of the subsidiary. The subsidiary shouldhave a separate audit committee.Complied withN/AKotmale Holdings PLC is a subsidiary of theCompany and has its own audit committee.N/AOne non-executive director shall be appointed as Chairman ofthe committee by the board of directors.Complied withPlease refer inner back cover.Unless otherwise determined by the audit committee, the ChiefExecutive Officer and the Chief Financial Officer of the ListedEntity shall attend audit committee meetings.Complied withPlease refer audit committee report on page 17.The Chairman or one member of the committee should be amember of a recognized professional accounting body.Complied withThe Chairman of the committee is a memberof ICASL and CIMA (UK).(b) FunctionsShall include,(i) Overseeing of the preparation, presentation and adequacyof disclosures in the financial statements of a Listed Entity,in accordance with Sri Lanka Accounting Standards.Complied withPlease refer audit committee report on page 17.(ii) Overseeing of the Entity’s compliance with financialreporting requirements, information requirements of theCompanies Act and other relevant financial reportingrelated regulations and requirements.(iii) Overseeing the processes to ensure that the Entity’sinternal controls and risk management are adequate,to meet the requirements of the Sri Lanka AuditingStandards.Complied withComplied with(iv) Assessment of the independence and performance of theEntity’s external auditors.Complied with(v) To make recommendation to the board pertaining toappointment, re-appointment and removal of externalauditors and to approve the remuneration and terms ofengagement of the external auditors.Complied with(c) DisclosuresThe names of the directors (or persons in the parent company’scommittee in the case of a group company) comprising the auditcommittee should be disclosed in the annual report.The committee shall make a determination of the independenceof the auditors and shall disclose the basis for such determinationin the annual report.The annual report shall contain a report by the audit committee,setting out the manner of compliance by the Entity in relation tothe above, during the period to which the annual report relates.Complied withComplied withComplied withPlease refer inner back cover.Please refer audit committee report on page 17.Please refer audit committee report on page 17.