The Audit Report is the final product of an audit assignment, which provides the scope of audit work performed, a general evaluation of the system of internal controls together with detailed audit observations, response of management, and comments and recommendations by GIAD for improvement. The AC reviews and evaluates any exceptions or non-compliance raised by GIAD and monitors that appropriate and prompt remedial actions are taken by the management. The GIAD is committed to provide an independent, objective assurance and advisory services that will add value and improve the company's operations. It does this by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes, in line with the conceptual framework and guidance promulgated by the Institute of Internal Auditors ("IIA''), International Standards for the Professional Practice of Internal Auditing and relevant regulatory guidelines. For the FY2025, an internal audit review was conducted, focusing on Group Human Capital, Destini Prima Sdn. Bhd. (Cylinder Workshop, Butterworth, Alor Setar, Subang and Gong Kedak Branch), Destini Oil Sdn. Bhd. (Financial Management), M Rail Technics Sdn. Bhd. and Destini Rail Sdn. Bhd. All audit findings, along with Management’s responses and recommendations for improvement, were presented to the AC during the AC meeting. 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 30 June 2025 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. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL MANAGEMENT'S ASSURANCE The Board has received assurance from the Executive Director that the Group's risk management and internal control system operate adequately and effectively, in all material aspects, based on the risk management and internal control system of the Group. 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 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. The Statement on Risk Management and Internal Control was approved by the Board on 29 October 2025. GOVERNANCE DESTINI BERHAD ANNUAL REPORT 2025 76
RkJQdWJsaXNoZXIy NDgzMzc=