IREIT Global
annual report 2014
Corporate
Governance Report
is responsible for the governance of risks and for
overseeing the enforcement of risk management
strategy and framework of the Manager.
The Board meets every quarter to review and track
the financial performance of the Manager and IREIT
against approved budgets and taking note of any
significant changes on quarter-on-quarter and year-
to-date results. During the review and analysing
business risk, the Board takes into consideration the
property market and economic conditions where
IREIT’s properties are located and other related risks.
Apart from this, the Board also reviews the risks
to the assets of IREIT, examines the management
of liabilities, and will act upon any comments from
internal and external auditors of IREIT.
In view of the importance of compliance and risk
management, the ARC is assigned the duty to oversee
this aspect of the Manager’s and IREIT’s operations.
The ARC reviews and assesses the adequacy of the
Manager’s risk management control measures that
are established by management. Additionally, the
ARC supervises the implementation and operation
of the risk management system, including going
through the adequacy of risk management practices
for material risks, such as commercial and legal,
financial and economical, operational and technology
risks, from time to time; and reviewing major policies
for effective risk management and relevance.
The Manager has appointed experienced and well-
qualified management personnel to handle the
day-to-day operations of the Manager and IREIT.
In assessing business risk, the Board will consider
the economic environment and risks relevant to the
property industry. It reviews management reports
and feasibility studies on individual investment
projects prior to approving major transactions. The
Board meets regularly to review the operations of the
Manager and IREIT and discuss any disclosure issues.
The Manager has provided an undertaking to the
SGX-ST that:
(i) the Manager will make periodic announcements
on the use of the proceeds from the public
offering as and when such proceeds are
materially disbursed and provide a status report
on the use of such proceeds in the annual report;
(ii) in relation to foreign exchange hedging
transactions (if any)
(a) the Manager will seek the approval of the
Board on the policy for entering into any
such transactions,
(b) the Manager will put in place adequate
procedures which must be reviewed and
approved by the ARC and
(c) the ARC will monitor the implementation
of such policy, including reviewing the
instruments, processes and practices in
accordance with the policy approved by
the Board; and
(iii) the ARC will review and provide their views on
all hedging policies and instruments (if any), to
be implemented by IREIT to the Board, and the
trading of such financial and foreign exchange
instruments will require the specific approval
of the Board.
The Manager has organised a risk management
workshop for the Board and management. During
the workshop, directors and management identified
potential risks and documented the findings for future
periodic reviews.
The Board has received assurance from the CEO
and Chief Financial Officer that (i) the financial
records of IREIT have been properly maintained
and the financial statements give a true and fair
view of IREIT’s operations and finances, and (ii) the
Manager’s risk management and internal controls
systems are effective.
