84 SECTION 04 : CORPORATE GOVERNANCE Audit, Risk Management and Sustainability Committee Report (Cont’d) COMPOSITION AND MEETING (CONT’D) The Board evaluated the ARMSC and its members' performance through an annual Board Committee effectiveness evaluation. The Board is satisfied that the ARMSC and its members have effectively discharged their functions, duties, and responsibilities in accordance with the ARMSC's TOR. The TOR of the ARMSC is available on the Company's website at www.enra.my. The ARMSC also assessed the head of GIA and the effectiveness of the GIA function, as well as the performance and independence of external auditors, which will then be recommended to the Board. Based on the assessment, the Board is satisfied with the overall performance of the GIA function as well as the performance and independence of the external auditors. SUMMARY OF WORK PERFORMED The ARMSC’s main scope of works for the FYE 2025 are summarised as follows: Financial Reporting a) The ARMSC reviewed the unaudited quarterly financial reports and the consolidated annual audited financial statements of the Group prior to making the recommendations to the Board for approval. b) The review including its related Bursa Securities’ announcements, focusing particularly on: • The overall performance and prospect of ENRA Group; • Any changes and implementation of major accounting policies and practices and the auditor’s report highlighting the key audit matters and the implication on ENRA Group; • Compliance with accounting standards and other legal requirements; and • Significant accounting and audit issues raised by BDO in financial statements and the corresponding judgement made by Management. c) Discussed significant accounting and audit issues in respect of the audited financial statements with Management and BDO, the accounting treatments that were applied and their judgement of the items that affected the financial statements. The external auditors were of the opinion that the Company’s audited financial statements reflected a true and fair view of the financial position of the Company and its Group and in accordance with the relevant accounting standards and regulatory requirements. External Audit a) Reviewed BDO’s scope of work and audit plans for the financial year to ensure sufficient coverage in terms of scope. Prior to the audit, representatives from BDO presented their audit strategy and plan. The ARMSC also met with BDO twice on 27 May 2024 and 19 February 2025 without the presence of the Executive Directors and Management. BDO were given the opportunity to raise any matters of concern arising from their audit work. No major concerns were highlighted and BDO had also confirmed that they had received full cooperation from Management and unrestricted access to the Group’s records. b) Reviewed with BDO the results of the audit, the audit report and the management letter, including Management’s responses to the audit findings. c) Considered the audit fees payable to the external auditors against the size and complexity of the Group before recommending for Board’s approval. d) Reviewed the independence, objectivity and suitability of the external auditors and services provided, including non-audit services. Details on the non-audit fees incurred for services rendered by the external auditors and its affiliates for the FYE 2025 are disclosed in the Additional Compliance Statement on page 93. e) Based on the satisfaction on the annual review of the performance of the external auditors, the ARMSC recommended to the Board the re-appointment of the external auditors to be proposed for shareholders’ approval at the 32nd AGM. The shareholders at the 32nd AGM approved the re-appointment of BDO for the FYE 2025.
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