ASIAN HOTELS AND PROPERTIES PLC AnnuAl RepoRt 2012/13

PASSION123 ASIAN HOTELS AND PROPERTIES PLCAnnual Report 2012 /13status of the internal control systems andrisk management systems, and compliancewith applicable laws and regulations.The Committee reviewed the whistleblowingarrangements for the Company which is inline with the group arrangements.External AuditThe External Auditors’ letter of engagement,including the scope of the audit, wasreviewed and discussed by the Committeewith the External Auditors and managementprior to the commencement of the audit.The External Auditors kept the Committeeadvised on an on-going basis regarding anyunresolved matters of significance. Beforethe conclusion of the audit, the Committeemet with the External Auditors to discuss allaudit issues and agree on their treatment.The Committee also met the ExternalAuditors, without the managementpresent, prior to the finalisation of thefinancial statements. The External Auditors’management letter for the year 2011/12,together with the management’s responseswas discussed with the management andauditors.The Audit Committee is satisfied that theindependence of the External Auditors hasnot been impaired by any event or servicethat gives rise to a conflict of interest.Due consideration has been given to thelevel of audit and non-audit fees receivedby the External Auditors from the JohnKeells Group and confirmation has beenreceived from the External Auditors oftheir compliance with the independenceguidance given in the Code of Ethics of theInstitute of Chartered Accountants ofSri Lanka.the Board that KPMG be re-appointed asthe External Auditors of Asian Hotels andProperties PLC for the financial year ending31st March 2014, subject to approval bythe shareholders at the Annual GeneralMeeting.ConclusionBased on the reports submitted by theExternal Auditors and the OutsourcedInternal Auditors of the Company, theassurances and certifications providedby the senior management, and thediscussions with management and theauditors both at formal meetings andinformally, the Committee is of the view thatthe control environment within the Companyis satisfactory and provides reasonableassurance that the financial position of theCompany is adequately monitored and itsassets are safeguarded.C.J.L. PintoChairman of the Audit Committee23rd May, 2013report of the audit committeeThe performance of the External Auditorshas been evaluated and discussed withthe senior management of the Company,and the Committee has recommended to