IREIT Global
annual report 2014
Corporate
Governance Report
The ARC has conducted a review of all non-audit
services provided by the external auditors of IREIT,
Deloitte & Touche LLP and is satisfied that the nature
and extent of such services will not prejudice the
independence and objectivity of the external auditors.
For the financial period ended 31 December 2014, the
aggregate amount of fees paid and payable by IREIT
to the external auditors was €130,000, comprising
audit service fees of €68,000 and non-audit service
fees of €62,000. The external auditors were also paid
approximately €363,000 for services rendered in
connection with the listing of IREIT on the SGX-ST.
ARC meetings are generally held after the end of every
quarter before the official announcement of results
pertaining to that quarter. The ARC has also met with
the external and internal auditors separately, without
the presence of management.
In appointing the external auditors for IREIT, the
ARC is satisfied that IREIT has complied with the
requirement of Rules 712 and 715 of the Listing
Manual. The ARC has assessed the performance
of the external auditor based on factors such as
the performance and quality of their audit and the
independence of the auditor.
The ARC is briefed regularly on the impact of new
accounting standards on IREIT’s financial statements
by the external auditors.
None of the members of the ARC are former partners
or directors of the Manager’s and/or IREIT’s external
auditors.
Principle 13:
Establishment of an internal audit
function that is independent of the activities it audits
The Manager has put in place a system of internal
controls of procedures, including financial,
operational, compliance and information technology
controls, and risk management systems to safeguard
IREIT’s assets, Unitholders’ interests as well as to
manage risk.
The internal audit function of the Manager is out-
sourced to an independent assurance service provider
and the ARC reviews the adequacy and effectiveness
of the internal auditor at least once a year. The ARC
is satisfied that the internal auditor has the relevant
qualifications and experience and has met the
standards established by internationally recognised
professional bodies including the International
Standards for the Professional Practice of Internal
Auditing set by The Institute of Internal Auditors. The
internal auditor reports directly to the ARC on audit
matters and the ARC approves the hiring, removal,
evaluation and fees of the internal auditor. The ARC
also reviews and approves the annual internal audit
plan and reviews the internal audit reports and
activities. The ARC meets with the internal auditor,
without the presence of management, at least once a
year. The ARC is of the view that the internal auditor
has adequate resources to perform its functions
and has to the best of its ability, maintained its
independence from the activities that it audits.
UNITHOLDERS’ RIGHTS AND RESPONSIBILITIES
Unitholders’ Rights
Principle 14:
Treat all Unitholders fairly and equitably,
and should recognise, protect and facilitate the exercise
of unitholders’ rights, and continually review and
update such governance arrangements
Communications with Unitholders
Principle 15:
Actively engage Unitholders and put in
place an investor relations policy to promote regular,
effective and fair communication with Unitholders
Conduct of Unitholders’ Meetings
Principle 16:
Greater Unitholders participation at
annual general meetings and the opportunity to
communicate views
