C O R P O R A T E G O V E R N A N C E
The Manager recognises that there is a significant amount of risk inherent in making property investment decisions. Accordingly,
the Manager has set out procedures to be followed when making such decisions. In accordance with this policy, the Manager
ensures comprehensive due diligence is carried out in relation to each proposed investment and carefully examines whether the
anticipated return on investment is appropriate having regard to the level of risk of the investment.
In assessing business risks, the Board also considers the economic environment and property industry risks. The Board, at times
by the Investment Committee, reviews and approves all investment decisions. The Management meets regularly to review the
operations of the Group.
The Manager has also established a Whistleblowing Policy which reflects the Manager’s commitment to conduct its business within
a framework that fosters the highest ethical and legal standards. The Whistleblowing Policy aims to provide an avenue to raise
concerns about possible improprieties in matters of financial reporting or other matters. The AC is kept informed of all concerns
raised in whistleblowing reports.
Directors’ Opinion On Internal Controls
The CEO and the Head, Reporting, Compliance and Corporate Services have provided their confirmation to the Board that to the
best of their knowledge, the system of risk management and internal controls is adequate, the financial records have been properly
maintained and the financial statements give a true and fair view of the Group’s operations and finances.
The Board recognises the importance of sound internal controls and risk management practices for good corporate governance.
The Board affirms its overall responsibility for the Group’s systems of internal controls and risk management, and for reviewing the
adequacy and integrity of those systems on an annual basis. The internal control and risk management functions are performed by
the Manager’s key executives and are reported to the AC for review.
It should be noted, in the opinion of the Board that, in the absence of evidence to the contrary, such systems are designed to
manage rather than to eliminate the risk of failure to achieve business objectives, and that it can provide only reasonable, and
not absolute assurance against material misstatement of loss, and include the safeguarding of assets, the maintenance of proper
accounting records, the reliability of financial information, compliance with appropriate legislation, regulations and best practices,
and the identification and containment of business risk. The Board notes all internal control systems contain inherent limitations
and no system of internal controls can provide absolute assurance against the occurrence of material errors, poor judgment in
decision-making, human error losses, fraud or other irregularities.
Based on the internal controls established and maintained by the Manager, work performed by the internal and external auditors,
and reviews performed by the Management, the various Board Committees and the Board, the AC and the Board are of the opinion
that there are adequate and effective internal controls and risk management systems in place within the Group to address material
financial, operational, compliance and information technology risks faced by A-REIT as at 31 March 2015.
The Board has also received assurance from the CEO and the Head, Reporting, Compliance and Corporate Services of the
Manager that:
(i)
the financial records have been properly maintained and the financial statements give a true and fair view of the operations
and finances of A-REIT and the Manager; and
(ii)
the risk management and internal control systems are adequate and remain effective.
ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT 2014/15
