SECTION 07 pg. 218 AL-SALĀM REIT BOARD COMMENTARY AND OPINION For the financial year under review, the Board received written assurance from the CEO and the CFO confirming that Al-Salām REIT’s enterprise risk management and internal control systems have operated adequately and effectively in all material respects. Based on these assurances, together with the results of management reviews and independent assessments, the Board notes that no material control failures, significant breakdowns, or adverse compliance events occurred that resulted in material financial loss or operational disruption to the REIT. Taking into account the representations provided by Management, as well as the BARC’s oversight throughout the year, the Board is satisfied that the risk management and internal control systems in place for the financial year 2025 under review and up to the date of approval of this Statement remain sound, effective, and sufficient to safeguard unitholders’ interests, the REIT’s assets, and the interests of other key stakeholders with no material control failures were reported. To arrive at this conclusion, the Board considered the following oversight mechanisms, reports, and assurances received during the year: • Periodic financial reviews, including assessments of financial performance, capital management, and quarterly financial results. • BARC’s oversight of the ERM Framework, including updates on changes in risk magnitudes, mitigation progress, and Management’s responses to emerging risks. • Review of principal risks, ensuring appropriate systems, controls, and mitigation strategies are implemented and monitored. • BARC’s review and consultations with Management on the integrity, adequacy, and transparency of the financial statements and year-end audit results. • Internal audit reports, including findings on governance, internal control effectiveness, and Management’s progress in implementing audit recommendations. • Management’s assurance that the REIT’s internal control, operational procedures, and compliance frameworks including compliance with applicable laws, regulations, Bursa Malaysia Listing Requirements, SC Guidelines, and internal policies operated adequately, effectively, and with integrity. The Board remains committed to strengthening governance practices and will continue to monitor major risks affecting the REIT, take timely and necessary actions to mitigate them, and enhance the effectiveness and robustness of the REIT’s risk management and internal control systems. REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS The External Auditors have performed limited assurance procedures on the SORMIC in accordance with the Malaysian Approved Standard on Assurance Engagements, ISAE 3000 (Revised), Assurance Engagements Other Than Audits or Reviews of Historical Financial Information, and AAPG 3, Guidance for Auditors on Engagements to Report on the Statement on Risk Management and Internal Control. Based on the procedures performed, the External Auditors have reported to the Board 5 March 2026 that nothing has come to their attention that causes them to believe that this Statement, intended for inclusion in the IAR2025: • is not prepared, in all material respects, in accordance with the disclosure requirements of Paragraphs 41 and 42 of the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers; or • is factually inaccurate in any material respect. This Statement is made in accordance with a resolution of the Board of Directors dated 25 February 2026. STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL
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