88
External Auditors
The AC had evaluated the performance of the external auditors for FY 2015. 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 ACRA and Singapore Exchange Limited on 15 July 2010.
Taking cognisance that the external auditors should be free fromany 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 had, in 2015, undertaken a review of the
independence of KPMG LLP ("
KPMG
") and gave careful consideration to the H-REIT Group’s,
HBT Group's and the Stapled Group’s relationships with them during 2015. 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 2015 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 2015, 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 2016, the ARC had taken into consideration the Audit Quality Indicators Framework
introduced by the Accounting and Corporate Regulatory Authority ("
ACRA
"). The ARC also
considered the following in their review:
(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.
The audit partner, Mr Koh Wei Peng (Alex) would be up for rotation after the completion of the
FY 2015 audit, after being in-charge of five consecutive audits for HBT and CDL Hospitality Trusts
and a new audit partner would be coming on board for the FY 2016 audit.
On the basis of the above, the ARC 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 2016 Annual General Meetings ("
2016 AGMs
").
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".
(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".
CORPORATE GOVERNANCE
