46 Annual Report 2025 INTERNAL AUDIT FUNCTIONS (CONT’D) Follow-up status reviews were also carried out to ensure weaknesses identified have been or are being addressed. During the financial year under review, Vaersa presented their follow-up status reports on previously reported audited findings in respect of the following functional scopes of the Group: Reporting Month Name of Entity Functional Scopes November 2024 Excel Force MSC Berhad • Corporate Governance and Anti-Bribery Management System reported in February 2024. • Finance and Accounts and Procurement reported in May 2024 February 2025 Excel Force MSC Berhad • Human Resource and Administration reported in November 2024 May 2025 Excel Force MSC Berhad • Customer Service reported in February 2025 August 2025 Excel Force MSC Berhad • Sales and Business Development reported in May 2025 Based on the internal audit reviews conducted, none of the weaknesses noted have resulted in material losses, contingencies, or uncertainties that would require separate disclosure in this Annual Report. THE KEY ELEMENTS OF THE GROUP’S INTERNAL CONTROL SYSTEM INCLUDE: 1. Organisation structure with defined lines of responsibility, authority and accountability; 2. Policies and procedures for key business processes are formalised and documented for implementation and continuous improvements; 3. Quarterly Board meetings and periodical management meetings are held where information is provided to the Board and management covering financial performances and operations; 4. Training and development are provided as and when required by employees with the objective of enhancing their knowledge and competency; 5. Management accounts and reports are prepared regularly for monitoring of actual performance; 6. Board participation at the macro perspective in the performance monitoring of all subsidiary companies under the Group; 7. An internal audit function carries out a quarterly internal audit to ascertain the adequacy of the internal control system and to monitor the effectiveness of operational and financial procedures. The internal audit also reviews and assesses risks faced by the Group and reports directly to the AC; 8. Regular internal audit visits to monitor compliance of the policies and procedures and to assess the integrity of both financial and non-financial information provided; 9. Follow-up visits are then subsequently conducted by the internal auditors to ensure proper implementation of agreed action plans by the respective process owners; and 10. Anti-Bribery and Corruption Policy and Whistle Blowing Policy are in place and in compliance with the listing requirements in relation to anti-corruption measures. RISK MANAGEMENT FRAMEWORK The Board recognises that risk management is an integral part of the Group’s business operations and that the identification and management of risks will affect the achievement of the Group’s business objectives. To this end, the Board has formalised a Risk Management Framework by implementing an ongoing process of identifying, evaluating, monitoring and managing the significant risks affecting the achievement of its business objectives and has taken into account the guidance of the Malaysian Code on Corporate Governance. The management of risks in the daily business operation is assigned to the management team and significant risks are identified and related mitigating responses as well as the corresponding internal control measures were deliberated at the Audit Committee and Board meeting. ASSURANCE FROM MANAGEMENT The Managing Director and Head of Finance have provided assurance to the Board, to the best of their knowledge and belief, that the Group’s risk management and internal control system was operating adequately and effectively in all material aspects, to meet the Group’s objectives during the financial year under review until the date of this Statement on Risk Management and Internal Control. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
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