45 Annual Report 2025 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL RISK MANAGEMENT (CONT’D) As part of the Risk Management process, a Registry of Risk and the Risk Management Handbook were adopted. The Registry of Risk is maintained to identify principal business risks and update for ongoing changes in the risk profile. The Risk Management Handbook summarises risk management methodology, approaches and processes, roles and responsibilities, and various risk management concepts. The responsibility of respective risk owners is to identify and ensure that adequate control systems are implemented to minimise and control the risks faced by the Group. The management has embedded the responsibilities to manage the risk and internal controls that are associated with the operations of the Group and to ensure compliance with the applicable laws and regulations. Any significant issues and control implemented were discussed at management meetings and quarterly Audit Committee meetings. SUSTAINABILITY COMMITTEE The Sustainability Committee at management level is formally established on 29 August 2024 to study how to design, implement, deploy, track, monitor, report, and share our sustainability efforts with internal and external stakeholders. The Committee team members comprise of department head, team lead, manager and executive of each division. The committee shared their thoughts on the importance of sustainability and their commitment to integrating it into the Excel Force group. While there was consensus on the need for sustainable practices, the specific approach and implementation details were not immediately apparent. As such, the committee acknowledged the challenges associated with navigating the complexities of sustainability, but expressed determination to collaboratively explore, study, understand, and implement sustainability practices. INTERNAL AUDIT FUNCTIONS In accordance with the Malaysian Code on Corporate Governance, the Group in its efforts to provide an adequate and effective internal control system had appointed Vaersa Advisory Sdn Bhd (“Vaersa”), an independent consulting firm to review the adequacy and integrity of its system of internal control. Vaersa acts as the internal auditors and reports directly to the Audit Committee on the quarterly basis. Vaersa reviews and addresses critical business processes, identifies risks associated with the internal control gaps, assesses the effectiveness and adequacy of the existing state of internal control of the Group and recommends possible improvements to the internal control process. This is to provide reasonable assurance that such systems continue to operate satisfactorily and effectively within the Group. The Internal Auditors use the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control – Integrated Framework as a basis for evaluating the effectiveness of the internal control systems. Each quarterly audit is engaged by approximately 2 to 4 audit personnel depending on the areas of the audit. Quarterly audit reports and status reports on follow-up actions were tabled to the Audit Committee and Board during its quarterly Audit Committee Meetings. The Internal Auditors are free from any relationships or conflicts of interest, which could impair their objectivity and independence of the internal audit function. The Internal Auditors do not have any direct operational responsibility or authority over any of the activities audited. The Audit Committee is of the opinion that the internal audit function is effective and able to function independently. For the financial year ended 30 June 2025, four (4) internal audit reviews had been carried out by Internal Auditors: - Audit Period Reporting Month Name of Entity Audited Audited Areas July – September 2024 November 2024 Excel Force MSC Berhad • Human Resource and Administration October – December 2024 February 2025 Excel Force MSC Berhad • Customer Service January – March 2025 May 2025 Excel Force MSC Berhad • Sales and Business Development April – June 2025 August 2025 Excel Force MSC Berhad • Management Information System
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