74
CDL
HOSPITALITY TRUSTS
The AC Self-Assessment Checklist covered inter alia, the responsibilities of the AC under its
terms of reference.
Based on the self-assessment, the H-REIT Manager AC and the HBT Trustee-Manager AC
agreed that they had fulfilled their responsibilities and discharged their duties as set out in its
terms of reference.
External Auditors
The AC had evaluated the performance of the external auditors for FY 2014. The AC also
reviewed the responses furnished by KPMG LLP, based on the sample questionnaire set out in
the “Guidance to Audit Committees on Evaluation of Quality of Work Performed by External
Auditors” issued by The Accounting and Corporate Regulatory Authority (“ACRA”) and
Singapore Exchange Limited on 15 July 2010.
Taking cognisance that the external auditors should be free from any business or other
relationships with the H-REIT Group, HBT Group and the Stapled Group that could materially
interfere with their ability to act with integrity and objectivity, the AC undertook a review of the
independence of KPMG LLP (“KPMG”) and gave careful consideration to the H-REIT Group’s
and the Stapled Group’s relationships with them during 2014. In determining the independence
of KPMG, the AC reviewed all aspects of their relationships with them including the processes,
policies and safeguards adopted by the H-REIT Group, the HBT Group and the Stapled Group
and KPMG relating to audit independence. The AC also considered the nature of the provision
of the non-audit services in 2014 and the corresponding fees and is of the opinion that such
non-audit fees did not impair or threaten the audit independence. Based on the review, the
AC is of the opinion that KPMG is, and is perceived to be, independent for the purpose of the
H-REIT Group’s, HBT Group’s and the Stapled Group’s statutory audit.
For details of the fees paid and/or payable by the H-REIT Group, HBT Group and the Stapled
Group in respect of audit and non-audit services for FY 2014, please refer to Note 20 of the
Notes to the Financial Statements.
In reviewing the nomination of KPMG for re-appointment for the financial year ending
31 December 2015, the AC had considered the following:
(i)
the adequacy and experience of the supervisory and professional staff of KPMG assigned
to the audit of the H-REIT Group, HBT Group and the Stapled Group;
(ii) the audit engagement partner assigned to the audit;
(iii) KPMG’s past experience in auditing clients in the REIT sector; and
(iv) the size and complexity of the audit exercise for the H-REIT Group, HBT Group and the
Stapled Group.
KPMG have confirmed that they are registered with ACRA in accordance with Rule 712(2) of the
Listing Manual of SGX-ST. The Stapled Group is thus in compliance with Rules 712 and 715 (read
with Rule 716) of the Listing Manual of SGX-ST in relation to the appointment of its auditors.
On the basis of the above, the AC has recommended to the Board the nomination of KPMG for
re-appointment as external auditors of the H-REIT Group, HBT Group and the Stapled Group at
the 2015 Annual General Meetings (“2015 AGMs”).
CORPORATE GOVERNANCE
Guideline 12.6
(b) If the external auditors
have supplied a substantial
amount of non-audit
services to the Company,
please state the bases for
the Audit Committee’s
view on the independence
of the external auditors.
Please refer to the
second paragraph under
the heading “External
Auditors”.
Guideline 12.6
(a) Please provide a
breakdown of the fees
paid in total to the external
auditors for audit and
non-audit services for the
financial year.
Please refer to the
third paragraph under
the heading “External
Auditors”.
