Review and discuss with management and the internal and external auditor the overall adequacy and effectiveness of the Company’s legal, regulatory and ethical compliance programs, including monitoring compliance with Company policies.

Review, at least annually, the Company’s risk management framework to satisfy itself that it continues to be sound and effectively identifies all areas of potential risk and report to the Board on its findings.

nitor the organisation’s risk profile - its on-going and potential exposure to risks of various types

ensuring that at least once in every three years an review of the board’s risk management, internal controls, business continuity, planning and information security systems are carried out and appropriate remedial action recommended to the board

The Board should appoint a Chief Information Security Officer (CISO) with sufficient expertise, authority and budgetary allocation to introduce and implement a cybersecurity risk management policy which should be approved by the Board. The policy should include a robust cybersecurity risk management process, incident response system, vendor management system, disaster recovery plan and a governance structure to monitor effective implementation, reporting and the need for cybersecurity insurance. Principle G.3 The Board should allocate regular and adequate time on the board meeting agenda for discussions about cyber-risk management.

carried out a robust assessment of the principal risks facing the company, including those that would threaten its business model, future performance, solvency or liquidity.

Annually review the organisation's risk profile

Review with legal counsel any matters that may have a material impact on the financial statements.

Directors (persons in the parent company’s committee in

Report annually to the shareholders, describing the committee's composition, responsibilities and how they were discharged, and any other information required by rules and regulations, including approval of non-audit services

airman of the committee shall attend the Annual General Meetings of the company and be prepared to respond to any questions from shareholders on the c

hing a process to ensure compliance with Laws & Regulations relating to tax, customs, foreign exchange and other levies applicable to the company. 6. Reporting responsibilities xRegularly report to the board of directors about committee activities, issues, and related recomm

nduct investigations

other individuals such as the Chairman of the board, the Chief Executive Officer, the Chief Financial Officer, the Head of Internal Audit and other repr

independence of the independent auditor

to obtain, at the company’s expense, any outside legal or other professional advice it may require in connection with the performance of its duties;

r the company secretary,

constituted by a majority of the members

general financial knowledge, at least one of whom preferably the chair, should have recent and relevant experience in financial reporting and control, including knowledge of the regulatory requirements, and should have past employment experience in finance or accounting or other comparable experience or background. Collectively, the committee should have an understanding of all matters that are integral to the company’s annual report.

aired by an independent non-executive directo

REPORT OF AUDIT COMMITTEE

l review, discuss and assess its own performance as well as its role and responsibilities,

meet in private sessions

processes for the management of business/financial risk

the chairman of the Audit Committee shall be a member of a recognized professional accounting body

by the board of directors

majority

ethica

updated on [date]

governance, risk management

How (and Why)

Generic private label, copycat brands, premium store brandsand value innovation are four types of private label(see appendix 1). Works such as those by Kumar and Steenkamp (2007) noted that the generic and copycatlabelsstillholdthe dominant position amongsalltypesof private label. Itis acommon trendfor all types of private label to pursuea low pricestrategy.

ICA utilises more than one type of private label, namely ICA,I love eco and Euroshopper. K umar and Steenkamp (2007,p.75), suggest that retailersoften use multiple types of private label simultaneously . According to the four types of private label(K umar and Steenkamp, 2007), Euroshopper can be regarded as a generic private label. TheEuroshopper can be described as a cheap pricelabeland does not get promoted. ICA is more likea premium store brand since it is not only has low pricesbut also betterquality.Corstjens and Lal (2000) likewise support that a combination low price and high quality private label is what contributesto private label success”. Responses from 65.7% of respondents indicatethat both quality and price are the most important considerations when they chose ICA products.

ICA chosethe multi-brand as their extension strategy andreleasedthree different labels. The ICA manager reasoned that this strategy was to meet the different customer’sneedsand also to protect the lead brand,ICA.

ICA chosethe multi-brand as their extension strategy andreleasedthree different labels. The ICA manager reasoned that this strategy was to meet the different customer’sneedsand also to protect the lead brand,ICA. Moreover, this strategy filled more shelf space and narrowedthe gap of quality and price.

IC A set aboutimplementingprivate label to increase its bargainingpower with manufacturers. Thiswasthe original motiveforICA to releaseprivate label.

IC A producedprivate label productsofthe same quality as other manufacturers but theirprice waslower.

Most retailers, however, use a three-pronged attack to achieve the best results. Offering three private label brands: One low-cost option for penny-pinching customers who care less about quality and more about savings. One organic or unique private label that caters to a specific customer segment, like eco-friendly shoppers or health-focused families. One premium private label that delivers on high-quality at a higher price point than option 1, but lower than other big brand premium options. Adapt Your Customer Strategy Each private label option is catered to reach a specific customer audience and meet their unique needs. Grocery retailers must think about how they can adapt their customer strategies to fit with the rise of private label purchasing. Customer loyalty data can be used to identify specific customer segments and help retailers adapt their strategies to accommodate for changing behaviours.