The Management reports on the business, operational and financial performance of DNeX Group against the committed plans to the Audit Committee where as business related risks and its mitigation plans report to the Risk, Governance and Sustainability Committee subsequently to the Board for approval on a quarterly basis or as and when deemed necessary. Through this mechanism, the Board is informed of all major control issues pertaining to internal control, risk taking and regulatory compliance. This will ensure that business objectives stay on course and that the Management undertakes the required remedial action within the committed timeline. In Q4 FY2024, the Management Committee function was replaced with Executive Committee to support and provide guidance to business units to execute their assigned duties. Audit ▪ Internal Audit The scope of works of the internal audit function are carried out based on the internal audit plan approved annually by the Audit Committee. For the period under review, the internal auditor has checked for compliance with policies and procedures and the effectiveness of the internal control system. Any significant findings of non-compliance or recommendations for process improvement are highlighted during the quarterly Audit Committee meetings. The internal auditor plays a significant role in verifying and validating whether the Management has met its responsibilities and determining the level of compliance to internal controls. This is carried out by evaluating controls, risk management, and governance processes carried out in pursuit of the business objectives. The Audit Committee reviews the audit report that details out the internal audit observations, the internal auditor’s recommendations, Management’s responses and ascertains that appropriate and prompt remedial actions are taken by the Management. External Audit DNeX Group also receives an audit report and management letter from external auditors who conduct annual statutory audits on the financial statements. Areas for improvements and reservations arising from the interim and final audits and any other matters the external auditors may wish to discuss (in the absence of the Management where necessary) during the course of the statutory audit by the external auditors are brought to the attention of the Audit Committee and Board accordingly. Communication and Feedback ▪ DNeX Group recognises the importance of timely dissemination of information and has been transparent and accountable to shareholders, stakeholders and the general public. The Board is committed to ensure that the shareholders and investors are well informed of major developments of DNeX Group through various disclosures and announcement to Bursa Securities including quarterly results, press releases to the media and online investor relations on the company’s website and social media platforms. All feedbacks are regularly collated and analysed with appropriate follow up action by the Group Corporate Communications Department who acts as the point of contact to respond for DNeX Group. The Group Corporate Communications Department also functions as an employee communication channel, to keep employees across DNeX Group informed and engaged on corporate developments and internal activities. This is achieved through internal digital platform and physical engagements through quarterly Townhall sessions. REVIEW OF STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL BY EXTERNAL AUDITORS In accordance with Paragraph 15.23 of the MMLR, the external auditors have reviewed this Statement on Risk Management and Internal Control for inclusion in this Integrated Report and had reported to the Board that nothing has come to their attention that causes them to believe that the 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. MANAGEMENT COMMITMENT The Board received assurance from the Chairman and Group Chief Executive Officer that to the best of their knowledge, DNeX Group’s risk management and internal control system is sound and effective, providing reasonable assurance that the structure and operation of controls are appropriate for DNeX Group’s operations. The Board will continue to monitor all major risks affecting DNeX Group and take necessary measures to mitigate them and continue to enhance the adequacy and effectiveness of the risk management and internal control systems of DNeX Group. This statement is made in accordance with a circular resolution of the Board dated 29 April 2025. 105 Governance DAGANG NeXCHANGE BERHAD Integrated Report 2024 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
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