FEDERAL INTERNATIONAL (2000) LTD

Corporate Governance ReportKey Management Executives’ RemunerationIn view of the sensitive nature of the Remuneration for the Key Management Executive, the Board is of the opinionthat the name of the key executives should not be disclosed in the Annual Report.Remuneration BandsNumber of Key Management ExecutivesFederal International (2000) Ltd AR 200225S$500,000 and above –S$250,000 to S$499,999 2Below S$250,000 11Total 13COMMUNICATION WITH SHAREHOLDERSPrinciple 10 : Accountability and AuditPrinciple 14 : Communication with ShareholdersPrinciple 15 : Greater Shareholder ParticipationThe Board is mindful of the obligation to provide timely and fair disclosure of material information. The Board isaccountable to the shareholders while the Management is accountable to the Board.The Company does not practise selective disclosure. Price sensitive announcements including interim and full-yearresults are released through MASNET and news release. The Company has engaged public relation company servicesto take care of the disseminating of information to the investors and public since its listing in 2000. The Companyholds analysts briefing and road show for its 30 June 2002 results. All shareholders of the Company receive a copyof Annual Report which contains the full financial statements of the Company and the Group. The Annual Report isavailable to all shareholders at no cost upon request.At general meetings, shareholders are given the opportunity to express their views and ask questions regardingthe Group and its businesses. The Articles of Association of the Company allow shareholders of the Company toappoint one or two proxies to attend and vote on their behalf.The chairpersons of the Nominating, Audit and Remuneration Committees are present and available to addressquestions at annual general meetings. The external auditors are also present to assist the directors in addressingany relevant queries by shareholders.Dealings in SecuritiesThe Company has adopted an internal code on dealings in the shares of the Company for Director and key executivesof the Group, which is modeled after the SGX’s Best Practice Guide. The internal code has been issued to all directorsof the Company and relevant executives of the Group and they are required to confirm compliance with the internalcode annually.