62 SECTION 04 : CORPORATE GOVERNANCE Audit, Risk Management and Sustainability Committee Report (Cont’d) COMPOSITION AND MEETING (CONT’D) The Board evaluates the performance and effectiveness of the ARMSC and its members annually through a Board Committee effectiveness assessment. Based on the evaluation conducted for the financial year under review, the Board is satisfied that the ARMSC and its members have effectively discharged their roles, duties, and responsibilities in accordance with the ARMSC’s TOR. The ARMSC’s TOR is available on the Company’s website at www.enra.my. The ARMSC also reviewed and assessed the performance of the head of GIA, the effectiveness of the GIA function, as well as the performance, suitability, and independence of the external auditors, and made appropriate recommendations to the Board. Based on the assessment conducted and the recommendations of the ARMSC, the Board is satisfied with the overall effectiveness of the GIA function and the performance, suitability, and independence of the external auditors. SUMMARY OF WORK PERFORMED The ARMSC’s main scope of works for the FYE 2026 are summarised below: Financial Reporting a) Reviewed the Group’s unaudited quarterly financial reports and audited consolidated financial statements for the FYE 2026 prior to recommending them to the Board for approval. b) Reviewed the related announcements to Bursa Securities, with particular focus on: • the overall financial performance and business prospects of the ENRA Group; • significant changes in, and the implementation of, accounting policies and practices, as well as the external auditors’ report, including key audit matters and their implications for the ENRA Group; • compliance with applicable accounting standards, regulatory requirements and other legal obligations; and • significant accounting and auditing issues identified by the external auditors and the appropriateness of Management’s judgments and responses in addressing such matters. c) Discussed significant accounting and audit matters arising from the audited financial statements with Management and BDO, including the accounting treatments applied and the judgments made in respect of items affecting the financial statements. The external auditors opined that the Company’s audited financial statements present a true and fair view of the financial position of the Company and its Group, and have been prepared in accordance with the relevant accounting standards and regulatory requirements. External Audit a) Reviewed the external auditors’ (BDO) scope of work and audit plans for the financial year to ensure adequate audit coverage. Prior to the commencement of the audit, representatives from BDO presented their audit strategy and audit plan to the ARMSC. The ARMSC also held two private sessions with BDO on 26 May 2025 and 26 February 2026, without the presence of the Executive Director and Management, to facilitate open discussion on audit-related matters. During these sessions, BDO was given the opportunity to raise any matters of concern arising from their audit work. No significant issues were highlighted, and BDO confirmed that they had received full cooperation from Management and unrestricted access to the Group’s records and information. b) Reviewed with BDO the results of the audit, including the auditor’s report and management letter, as well as Management’s responses to the audit findings. c) Considered the audit fees payable to the external auditors in relation to the size and complexity of the Group, prior to recommending them for the Board’s approval. d) Reviewed the independence, objectivity and suitability of the external auditors, as well as the services provided, including non-audit services rendered. Details of the non-audit fees incurred for services provided by the external auditors and their affiliates for the FYE 2026 are disclosed in the Additional Compliance Information on pages 74 to 76. e) Based on the satisfactory outcome of the annual assessment of the external auditors’ performance, the ARMSC recommended to the Board the re-appointment of the external auditors, to be tabled for shareholders’ approval at the 33rd Annual General Meeting (“AGM”). At the 33rd AGM, shareholders approved the reappointment of BDO as the Company’s external auditors for the FYE 2026.
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