Contents - Tung Lok Restaurants 2000 Ltd

3) reviews the co-operation given by our Group’s officers to the external auditors;4) reviews the financial statements of our Group before submission to the Board of Directors;5) nominates external auditors for re-appointment and reviews their independence;6) reviews interested person transactions;7) reviews internal audit findings and adequacy of the internal audit function.The Board considers that the members of the AC are appropriately qualified to discharge their responsibilities.The external auditors have full access to the AC and the AC has full access to the management. The AC has expresspower to commission investigations into any matters, which has or is likely to have material impact on the Group’soperating results or financial results.For FY2002, the AC met once with the external auditors without the presence of the management. The AC reviewed thefindings of the auditors and the assistance given to them by management.The AC has undertaken a review of all non-audit services provided by the external auditors for FY2002 and is satisfiedthat such services would not in the AC’s opinion, affect the independence of the external auditors.The external auditors carry out in the course of their statutory audit, a review of the effectiveness of the Company’smaterial internal controls, including financial, operational and compliance controls. Material non-compliance and internalcontrol weaknesses noted during their audit are reported to the AC together with their recommendations. The internalauditors follow up on the external auditors’ recommendations in a joint effort to strengthen the Group’s internal controlsystems.The AC has reviewed and, based on the audit reports and management controls in place, is satisfied that there areadequate internal controls in the Group.An internal audit function had been set up. The internal auditor reports to the Chairman of the AC and also to the ChiefFinancial Officer for administrative purpose. The internal audit plan is approved by the AC. The results of the auditfindings are submitted to the AC for its review in its meeting. The scope of the internal audit covers the audits of alloperations.The AC is satisfied that the internal audit function is adequately resourced and has appropriate standing within theCompany in view of the current scale of operations.Remuneration MattersPrinciple 7Principle 8Principle 9: Procedures for Developing Remuneration Policies: Level and Mix of Remuneration: Disclosure on RemunerationThe Remuneration Committee (“RC”) was reconstituted in December 2002 to comprise four directors, of whom three are 17