SECTION 07 pg. 180 AL-SALĀM REIT BOARD AUDIT AND RISK COMMITTEE REPORT Compliance In discharging its oversight responsibilities over compliance matter, the Committee undertook the following: (a) Monitored and reviewed the status and outcomes of the Quarterly Compliance Report which seek to identify gaps in compliance with regards to applicable laws, regulations, codes, standards, policies and procedures and discussed the adequacy of measures to address such gaps or noncompliance. (b) Deliberated on the results of compliance cases and directed Management to implement and/or enhance controls to prevent a recurrence, including conducting education programmes to increase awareness. For the year 2025, there is no non-compliance case under Al-Salām REIT. During the financial year 2025, there was one non-compliance case under Al-Salām REIT involving a breach of the Public Shareholding Spread requirement. Management implemented remedial actions and the breach was fully rectified in October 2025. (c) Received updates on the directorships and shareholdings held by the Directors of the REIT and persons connected with them in accordance with Section 221 of the Companies Act, 2016 on an annual basis. These disclosures enabled an assessment of the potential or actual conflicts of interest which may arise in relation to Related Party Transaction (“RPT”) or Recurrent Related Party Transaction (“RRPT”). (d) Monitored the status of internal whistleblowing, breach of PDPA and misconduct cases reported to Board and BARC on a quarterly basis, including ongoing investigations, in accordance with the Code of Conduct and Business Ethics (“CoBE”). Review of RPT And RRPT As part of its oversight of related party transactions and conflict-of-interest matters, the Committee undertook the following: (a) Reviewed related party transactions entered into by the REIT and ensured that such transactions were in the best interests of the REIT and its unitholders, conducted on fair, reasonable and normal commercial terms, and were not detrimental to the interests of minority unitholders. The Committee recommended the relevant transactions to the Board for approval. The Committee also ensured that Directors’ Declarations of Interests in Securities and disclosures of any conflict-of-interest situations at Board meetings were properly documented and minuted. The Committee further noted the confirmation by the CEO that there were no management conflict-of-interest situations for operational matters during the financial year. (b) Reviewed the annual Unitholders’ Mandate in relation to recurrent related party transactions of a revenue or trading nature for unitholders’ approval to undertake transactions that are recurrent, of a revenue or trading nature and which are necessary for the day-to-day operations of the REIT with related parties (“RRPTs”). The mandate was tabled and approved at the AGM on 25 June 2025. (c) Ensured that the RRPT Policy was sufficient to ensure that the RRPTs were not more favourable to the related parties and were not to the detriment of the minority unitholders and that the Manager had in place adequate procedures and processes to monitor, track and identify RRPTs in a timely and orderly manner, and such procedures and processes were reviewed on a yearly basis or whenever the need arose. The policy was approved by the BARC on 15 May 2025. (d) Review of RRPT on a quarterly basis. The Management had given assurance to the BARC that RPT and mandate for RRPT were in compliance with the Listing Requirements and policies and procedures. Other Activities During the financial year, the Audit and Risk Committee also reviewed and recommended to the Board, for inclusion in the IAR2025, the following key governance and compliance disclosures: • The Audit and Risk Committee Report, to ensure it accurately reflects the Committee’s roles, responsibilities and activities undertaken during the financial year. • The Corporate Governance Overview Statement, to confirm alignment with the Malaysian Code on Corporate Governance and Bursa Malaysia Listing Requirements. • The Corporate Governance Report, to ensure comprehensive and transparent disclosure of the REIT’s governance practices and compliance status. • The SORMIC, to confirm the adequacy and effectiveness of the REIT’s risk management and internal control framework.
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