Tuas Power Ltd believes that good corporate governance, as reflected in a culture of integrity, openness and accountability supported by a sound system of policies and internal controls, is essential to the long-term sustainability of the businesses and performance of the Company. Effective corporate governance is the key to ensuing transparency, protecting stakeholders’ interest and maximising shareholder value. As such, the Company strives to continuously improve all aspects of its governance practice.
For effective monitoring of the Company’s business, the management provides the Board of Directors (Board) with appropriately detailed management accounts of the Company’s performance and prospects on a monthly basis showing quarterly results, forecasts for profits and cash flow, working capital and borrowing levels, compared against the approved budget. The annual budget is reviewed and approved by the Board.
Internal Control & Risk Management
The Board has put in place a framework of prudent controls and systems to manage the Company’s risks and to adequately safeguard, verify and maintain accountability of its assets. These controls include financial, operational controls and risk management policies established by the management. The Board, through the Audit Committee, continuously reviews the effectiveness of all internal and operational controls including ensuring that adequate financial risk management policies and compliance controls are in place and that proper accounting records are maintained.
A risk management committee comprising management representatives from finance, trading, retail, fuel management and risk management meet regularly throughout the period to look into the Company’s overall risk profile and the various risk aspects of the business units and corporate functions of the Company. It also ensures that risks to the business are properly identified and evaluated and effective responses are promptly developed for their management. The risk management committee reports to the management team of the Company. To ensure independence, the head of risk management reports directly to the Audit Committee.
The internal audit function is outsourced, with the management remaining responsible for monitoring compliance regularly.
Audits are carried out on all significant business areas in the Company. The internal audit reports are submitted to the Audit Committee and the findings and recommendations of the internal auditors deliberated at the Audit Committee meetings.