CFSL - Annual report 2018

website. Twice yearly analyst meetings are also held where half yearly and full year results of the Group are presented to analysts. The Group interacts with its internal stakeholders, namely its employees, via Workplace, a collaborative platform run by Facebook where employees can communicate via groups and chat with colleagues, and which offers the social network’s features in a corporate environment. The external stakeholders of the Group, namely its customers, suppliers, shareholders, the Government/regulators and the public, are reached via social media platforms such as Facebook and LinkedIn as well as via advertisements. As and when required, focus groups are held with clients to assess their expectations from the Group. Regular channels of communication are also maintained with the regulators and the Government. In addition, shareholders are invited annually to the Annual Meeting of Shareholders to approve the financial statements and vote on the re-appointment/appointment of directors and external auditors. The next Annual Meeting of Shareholders of the Company is scheduled in February 2019 and shareholders will receive the notice of the AMS at least 14 days prior to the meeting in accordance with the law. 4. INTERNAL CONTROL AND INTERNAL AUDIT Given that the bulk of the activities of the Group are carried out under Cim Finance Ltd, the Group Internal Audit function has been transferred to become a department of Cim Finance Ltd. The internal audit of other group entities (excluding Lavastone Ltd which has outsourced its internal audit to Smartree Consulting Ltd) has been outsourced to the Internal Audit department of Cim Finance Ltd. A description of the Internal Audit function of Cim Finance Ltd and its activities is set out on page 41. 5. EXTERNAL AUDIT The external auditors of the Company and the Group are Ernst & Young (‘EY’) who were first appointed as external auditors at the Annual Meeting of Shareholders held on 31 March 2017. The selection and appointment of EY as auditors was carried out following a tender issued by the RMAC in November 2016. Following responses received, three external audit firms were shortlisted and presented their proposals before the RMAC after which EY was recommended for appointment as external auditors. The RMAC discusses critical policies and external audit issues with EY as and when necessary and meets them at least once a year without management being present. The RMAC assesses the effectiveness of the external audit process via feedback received from the management team and the chairmen of the other audit committees of the Group. Areas for improvement are thereafter discussed with the external auditor. The Group has implemented a policy for the provision of non-audit services by the external auditor. The objectives of the policy are: • To ensure that neither the nature of service nor the level of reliance placed on it by the Group could be perceived to impair the independence and objectivity of the external auditors’ opinion on financial statements. • To establish a straightforward and transparent process and reporting mechanism to enable the RMAC to monitor and control the independence of the external auditors and compliance with this policy. • To avoid unnecessary restrictions on the purchase of services from the external auditors who are expected to provide a higher quality and a more cost effective service than other providers. For the year under review, the fees paid to the external auditors for non-audit work are set out on page 44. 31 CIM FINANCIAL SERVICES LTD ANNUAL REPORT 2018