Audit Committee

The main function of the Audit Committee is to supervise the following matters:
1.Fair presentation of the financial reports of this Corporation.
2.The hiring (and dismissal), independence, and performance of certificated public accountants of this Corporation.
3.The effective implementation of the internal control system of this Corporation.
4.Compliance with relevant laws and regulations by this Corporation.
5.Management of the existing or potential risks of this Corporation.

The members of the Audit Committee are composed of the entire number of independent directors. According to Sincere Navigation Corporation’s Audit Committee Charter, the committee consists of a convener and 2 other members, or 3 members in total.

TitleNameSelected Education & Past Positions
ConvenerLee, Yen-SungMaster, Accounting, Soochow University
17th President of Certified Public Accountant R.O.C.
Deputy Territory Senior Partner of Pricewaterhouse Coopers, Taiwan
Lecturer, Dept. Accounting, College of Management National Taiwan University
CommitteeCheng, Fu-KwokSenior Advisor to the Global Shipping Head of CA CIB
Honorary Chairman and Director of Credit Agricole Asia Shipfinance Limited
Honorary Treasurer of the Hong Kong Maritime Museum
Member of the Maritime and Port Board (MPB) and Chairman of the Promotion and External Relations Committee under MPB
CommitteeFan, Kuang-NanPresident, China Ship Building Corporation
President and Deputy Chairman, China Ship Building Corporation
Consultant, China Ship Building Corporation
Director, Metal Industries Research & Development Centre
Director, CTCI Foundation

Communication between the independent director and the internal audit manager and CPAs (including material matters, methods, and the results associated with corporate finance and business):
The audit officer regularly sends audit reports to independent directors for review. Accountants regularly report the audit results of the Company to the independent directors, and issue “Communication Letters to the Management” for bidirectional communication to facilitate independent directors to keep abreast of the Company’s financial and business performance.

Excerpts of the main communicated issues in 2019 are as follows:
Excerpts between independent directors and audit officer

Methods of communicationDateTopicMain points of communication topics
Meetings called2019/11/11Second meeting of the first Audit CommitteeReporting the completed 2019 internal audit operations that shall be declared.
Proposing the 2020 internal audit plan.
CorrespondenceMonthlyAudit report and follow-up reportAfter the audit report and the follow-up report are approved, they will be delivered to the independent directors before the end of the following month after the completion of the audit items.
CorrespondenceIrregular basisOther MattersReply by mail or phone to explain the communication issues raised by the independent directors.

Excerpts of communication between independent directors and CPAs

Methods of communicationDateTopicMain points of communication topics
Proposal consultation before the meetins2019/08/13Issues related to the first meeting of the first Audit CommitteeRelated to independent directors' audit statement on the Company's Q2 Consolidated financial statements.
Meeting called2019/11/11Second meeting of the first Audit CommitteeReporting the review results of the financial statements for the fist three quarters of 2019.
OtherIrregular basisOther matters other than the information of the Board meetingReplying by email or phone at any time to explain the communication matters raised by the independent directors.