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ANNUAL REPORT 2015
FRASERS HOSPITALITY TRUST
In performing its functions, the ARC Committee meets with the internal and external auditors at least on an annual
basis without the presence of the executive officers of the REIT Manager. All audit findings and recommendations are
presented to the ARC Committee for discussion.
The ARC Committee reviews the internal and external audit plans for FHT and the REIT Manager and the assistance
given by Management to the auditors.
Updates on changes in accounting standards and treatment are prepared by external auditors and circulated to
members of the ARC Committee periodically.
The ARC Committee comprises Non-Executive Directors, all of whom are independent:
Mr Law Soon Keng
Chairman
Mr Liew Choon Wei
Member
Dr David Wong See Hong
Member
The Board is of the view that the members of the ARC Committee collectively possess the accounting and related
financial management expertise and experience required for the ARC Committee to discharge its responsibilities and
assist the Board in its oversight over Management in the design, implementation and monitoring of risk management
and internal control systems.
The MAS has granted the Trustee-Manager an exemption from compliance with Section 15(1) of the BTA to the extent
that Section 15(1) of the BTA requires an audit committee to be constituted when FH-BT is dormant, subject to the
conditions that (i) the exemption shall only be in effect for so long as FH-BT is dormant, and (ii) immediately upon
the Trustee-Manager becoming aware that FH-BT will become active, the Trustee-Manager shall ensure that an audit
committee in compliance with the requirements of the BTA and the BTR is constituted before FH-BT becomes active.
External Auditors
Ernst and Young LLP (“
E&Y
”) was appointed by the Managers as external auditors of FHT for the financial period. The
REIT Manager and Trustee-Manager confirm that they comply with Rules 712 and 715 of the Listing Manual in relation
to the appointment of E&Y as the auditor of FHT. The ARC Committee has conducted a review of all non-audit services
provided by E&Y during the financial period. A substantial portion of such services was for one-off IPO-related work.
The ARC Committee is satisfied that given the nature and extent of non-audit services provided and the fees for such
services, neither the independence nor the objectivity of E&Y is put at risk. For details of the fees paid to E&Y, please
refer to Note 5 to the Financial Statements.
E&Y attended the ARC Committee meetings every quarter for the financial period, and where appropriate has met with
the ARC Committee without the presence of Management to discuss their findings, if any.
E&Y will not be seeking re-appointment and will retire at the end of FHT’s Annual General Meeting on 9 December
2015.
It is proposed that at the forthcoming FHT Annual General Meeting KPMG LLP (“
KPMG
”) be appointed as auditors of
FHT in place of the retiring auditors and that the Managers be authorised to fix their remuneration.
The ARC Committee of the REIT Manager has reviewed and deliberated on the proposed change of auditors and is of
the view that the proposed change in auditor is in line with the proposed change of auditors to KPMG by FCL, FHT’s
Sponsor and indirect controlling Stapled Securityholder. The appointment by FHT of the same external auditor would
also be more efficient for FHT from a reporting perspective. It would be timely to effect a change of external auditors
commencing from the financial year ending 30 September 2016.
The ARC Committee of the REIT Manager has therefore recommended the appointment of KPMG as new auditors for
the financial year ending 30 September 2016.
In recommending KPMG as the new auditors for approval, the ARC Committee of the REIT Manager considered factors
such as the adequacy of resources, the experience of supervisory and professional staff to be assigned to the audit, the
size and complexity of FHT and its business and operations, and are satisfied that the incoming auditors will be able
CORPORATE GOVERNANCE REPORT
