DESTINI Annual Report 2020

Review of the Statement by External Auditors The External Auditors have reviewed this Statement on Risk Management and Internal Control for inclusion in the Annual Report of the Company for the financial year ended 31 December 2020 and reported to the Board that nothing has come to their attention that causes them to believe that this statement is inconsistent with their understanding of the process adopted by the Board in reviewing the adequacy and integrity of the system of internal control. Management’s Assurance The Board has received assurance from the President & Group Chief Executive Officer that the Group’s risk management and internal control system is operating adequately and effectively, in all material aspects, based on the risk management and internal control system of the Group. Risk Management and Internal Control Statement Conclusion For the financial year under review, there were no significant internal control deficiencies or material weaknesses resulting in material losses or contingencies requiring disclosure in the Annual report. The Board is of the view that the existing system of the risk management and internal control is adequate. Nevertheless, the Board recognises that the system of risk management and internal control must continuously improve in line with the Group’s business environment. Therefore, the Board would put in place adequate plans, where necessary, to continuously improve the Group’s system of risk management and internal control. 74 ANNUAL REPORT 2020 DESTINI BERHAD