Audit Committee Report Governance Related Party Transactions (RPTs) and Recurrent Related Party Transactions (RRPTs) 20. Noted the summary report of the RPTs and RRPTs monitoring and tracking by Management to ensure compliance with the MMLR; 21. Discussed the RPTs and RRPTs to be undertaken by the Group; Verification of the Allocation of Enterprise Option Scheme (EOS) options 22. Verified the allocation and movement of EOS options for the year 2022 to ensure that it had been carried out in accordance with the approved criteria and matrix as stipulated in the By-Laws of EOS; Conflict of Interest 23. Reviewed the established conflict of interest process to ensure its relevancy and alignment with Bursa Malaysia Securities Berhad’s Guidance on Conflict of Interest Issuers Communication Note No. 1/2023; 24. Assessed the disclosure of conflict of interest by IHH Directors in accordance with IHH’s Board of Directors Conflict of Interest Policy; Other Activities 25. Deliberated on the ancillary governance, control and reputational risk reports as highlighted by the ACs of the relevant operating subsidiaries of the Group; 26. Reviewed and recommended to the Board for approval the AC Report and Statement on Risk Management and Internal Control for inclusion in the Annual Report 2022; and 27. Noted the annual statement by Management in relation to the compliance framework that is implemented in line with the Code of Conduct to Regulate, Monitor and Report Trading in Securities of Specific Indian Companies pursuant to the requirements under the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015. Group Internal Audit Function The internal audit function is under the responsibility of the Group Internal Audit (Group IA) department led by the Group Head, Internal Audit. Group IA is independent and reports directly to the AC. Group IA has direct control over internal audit activities in Malaysia, Singapore, China and India (excluding Fortis Healthcare Limited Group which is a publicly listed company in India). Group IA maintains oversight of Acibadem’s internal audit activities through close partnership with the internal audit function of Acibadem. Apart from Gleneagles Hong Kong and Parkway Life Real Estate Investment Trust, the Group’s internal audit function is undertaken in-house and supported by co-sourcing with independent external subject matter experts, where necessary. Fortis Healthcare Limited Group undertakes its internal audit function in-house which is also supported by outsourced independent internal audit firms periodically. Group IA has visibility and the ability to influence those internal audit activities at all levels throughout the Group including in respect of those operating companies’ internal audit function which are outsourced to independent internal audit firms. Group IA provides independent, objective assurance on areas of operations reviewed and makes recommendations based on the best practices that will improve and add value to the Group. Group IA identifies, coordinates, monitors and oversees the internal audits that are to be carried out throughout the Group and also provides standards, policies, guidelines and advice to the subsidiaries’ internal audit functions to standardise the internal audit activities within the Group. Group IA adopts a systematic and disciplined approach to evaluate the adequacy and effectiveness of the financial, operational and compliance processes. Structured risk-based and strategic-based approaches are adopted in identifying the internal audit activities that are aligned with the Group’s strategic plans to ensure those risks faced by the Group are adequately reviewed. In addition, international standards and best practices are adopted to enhance the relevancy and effectiveness of the internal audit activities. The internal audit reports are issued to Management for their comments and for them to agree on action plans with deadlines to complete the necessary preventive and corrective actions. The reports and summary of key findings are tabled to the AC for deliberation to ensure that Management undertakes to carry out the agreed remedial actions. Please refer to the Statement on Risk Management and Internal Control as laid out on pages 111 to 118 of this Annual Report for the summary of the work of the internal audit function undertaken during the year ended 31 December 2023. The total costs incurred to maintain the internal audit function of the Group in 2023 was RM16.8 million. IHH Healthcare Berhad 108
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