GOVERNANCE 4. M ATTERS RELATING TO RELATED PARTY TRANSACTION AND CONFLICT OF INTEREST (i) Reviewed the quarterly and annual financial statements on disclosures relating to related party transactions and conflict of interest that arose within the Group, if any. TERMS OF REFERENCE The Terms of Reference of the AC which laid down its duties and responsibilities are accessible via the Company's website at www.destinigroup.com. INTERNAL AUDIT FUNCTION The Group has established its in-house Internal Audit Department since 2004, which reports to the AC and assists the AC in reviewing the effectiveness of the internal control and risk management systems within the Group whilst ensuring that there is an appropriate balance of controls and risks throughout the Group in achieving its business objectives. With the internal audit function being put in place, remedial action can be taken in relation to weaknesses identified and noted in the systems and controls of the respective operating units. The setting up of the internal audit function is geared towards increasing efficiency and better management of resources in all aspects of the Group's operations. The scope of internal audit covers the audit of all units and operations, including subsidiaries as stated in the letter of engagement. The Internal Audit Department of the Group has a total of four (4) professional staff and it is led by Encik Khairul Rizal Bin Osman as the Head of Internal Audit. Encik Khairul Rizal holds a Bachelor’s Degree in Business Administration from Universiti Teknologi MARA and a Diploma in Banking Studies from the same university. He is a Certified in Internal Auditing for Financial Institutions (“CIAFIN”), has an Associate Qualification in Islamic Finance (“AQIF”) and a Lead Auditor, Intergrated Management System (“IMS”) ISO9001, ISO 14001 & ISO 45001 Exemplar Global Certified. The Internal Audit Department of the Group performs its duties in accordance with standards set by relevant professional bodies, namely the Institute of Internal Auditors. The internal auditors monitor and report on the system of internal control. They work on a plan agreed with the AC and support the AC in discharging its duties and responsibilities, giving assurance that adequate, efficient and effective internal control systems are in place. During the FY2025, the following activities were carried out by the Internal Auditors in discharge of its responsibilities: (i) Executed the internal audit function based on an Internal Audit Plan tabled and approved by the AC; (ii) The Internal Audit Plan encompasses critical functional areas and business activities of the Group. It also addresses issues related to control deficiencies and areas for improvement, providing pertinent recommendations to rectify these issues; (iii) E mphasis on implementing best practices and ensuring management assurance across all business risks, with a particular focus on operational effectiveness and efficiency, reliability of reporting, compliance with applicable laws and regulations, and safeguarding of assets; (iv) Performed follow-ups on the status of managementagreed action plans on recommendations raised in previous internal audit cycles, specifying timelines for the resolution of outstanding matters; and (v) P resentation of reports issued by the internal audit function at AC meetings with management in attendance to provide clarifications or additional information to address questions raised by AC members in relation to the matters raised. The AC and the Board agree that the internal audit review and the coverage is adequate. The cost incurred for the internal audit function in respect of the financial year is approximately RM234,183.69. For more details of the internal controls, internal audit function and risk management, please refer to the Statement on Risk Management and Internal Control included in this Annual Report. DESTINI BERHAD ANNUAL REPORT 2025 79
RkJQdWJsaXNoZXIy NDgzMzc=