pg. 179 Corporate Governance Report Integrated Annual Report 2025 BOARD AUDIT AND RISK COMMITTEE REPORT NO DATE PERIOD OF REVIEW SCOPE ISSUES RAISED/ RATING TOTAL HIGH MEDIUM LOW 1 11.8.2025 1 April 2024 – 31 March 2025 Asset Acquisition and Disposal 11 August 2025 1 2 - 3 2 7.11.2025 1 September 2024 – 31 August 2025 IA Review Financial and Budgetary Controls Review - - 3 3 Total 6 A follow-up review on Asset Acquisition and Disposal was conducted by the Internal Auditor on 13 October 2025 which confirmed that all agreed corrective actions had been implemented satisfactorily and the issues were fully closed. The BARC was apprised of the outcome of the followup review and is satisfied with Management’s actions in addressing the audit observations. A follow-up review on the Financial and Budgetary Controls Review was conducted on 22 October 2025, which confirmed that all audit issues identified had been resolved and satisfactorily closed. The outcome of the follow-up review was reported to the BARC, and no further corrective actions were required. The Committee has also assessed the effectiveness of the internal audit function through evaluation of its performance and competency, and that is satisfied that with expertise and professionalism of the internal auditor in discharging its duties. Risk Management and Internal Control The Audit and Risk Committee engaged with the Management team to obtain assurance on the adequacy and effectiveness of the internal control systems and activities of the REIT and the Manager. The BARC was satisfied that the system of risk management and internal control as described in the SORMIC, was sound and effective, providing reasonable assurance that the structure and operation of controls were appropriate for the REIT’s operations. The BARC also acknowledged that implementation measures were continuously taken to strengthen the system of risk management and internal control so as to safeguard the interests of stakeholders including unitholders’ investments, and the REIT’s assets. The Audit and Risk Committee reviewed the SORMIC on 10 February 2026 and recommended it to the Board for approval and inclusion in the IAR2025. In addition, the BARC has also carried out its duties in line with its ToR, listed as below: (a) Reviewed quarterly top risk profiles which covers Strategic, Finance, Operational and Compliance Risks and ESG related risks especially with respect to environmental risks, deliberated on the significant threats and opportunities, including status and adequacy of mitigation strategies. (b) Discussed the improvements to the ERM Framework and process to ensure proactive and holistic risk identification, and monitoring of mitigation actions to reduce risk impact to an acceptable level. The 5th revision of the ERM framework will be submitted to the BARC for recommendation to the Board on 10 Feb 2026. (c) Evaluated the overall adequacy and effectiveness of internal controls through review of the work performed by both internal and external auditors, and through discussions with Management. (d) Ensures appropriate controls are in place in management of the REIT, that the Manager has a well-defined organisational structure with clear lines of responsibility and a comprehensive reporting system and adequate procedures in financial reporting, risk management, internal control and are in place. Details in respect of the principal risks and uncertainties are set out in Section 8 of the IAR. Further details in respect of risk management and internal controls are set out on pages 193 to 218 (SORMIC of this IAR2025).
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