AUDIT AND RISK MANAGEMENT COMMITTEE REPORT (CONT’D) SUMMARY OF WORK OF THE ARMC (CONT’D) (D) Related Party Transactions (“RPT”) and Recurrent RPT (“RRPT”) (i) Reviewed all RPT and RRPT entered into by the Group in accordance with the Company’s RPT Policy; and (ii) Monitored and reviewed all RPT and RRPT on a quarterly basis. Throughout FYE 2025, the ARMC was satisfied that all such transactions were conducted on an arm’s length basis and under normal commercial terms. (E) Conflict of Interest (“COI”) and/or Potential COI (i) Reviewed the COI and/or potential COI situations that arose, persisted or may arise within the Group on a quarterly basis, along with the measures implemented to resolve, eliminate or mitigate such conflicts, to ensure compliance with provisions of MMLR. During the FYE 2025, a potential COI relating to a tenancy agreement for the rental of an office unit entered into between a person connected to a substantial shareholder of the Company and Keyfield Offshore Sdn. Bhd., a wholly owned subsidiary of the Company, was identified and reported to the ARMC. The Management compared the rental rate against the prevailing market rates and concluded that the transaction was on an arm’s length basis. The ARMC reviewed the matter and was satisfied with the mitigation measures implemented by the Management. (F) Risk Management and Internal Control (i) Reviewed the Risk Management Report presented by the Chief Compliance and Costing Officer, which provided updates on the principal and operational risk registers; and (ii) Made recommendations to the Board on measures to enhance the adequacy and effectiveness of the Group’s risk management and internal control systems, taking into consideration the findings and recommendations of both the Internal and External Auditors, as well as the Management’s responses in mitigating such identified control deficiencies. (G) Sustainability Management (i) Reviewed the Sustainability Report presented by the Chief Compliance and Costing Officer, which provided updates on the Group’s ESG progress, including the ESG scoreboard and GRC activity calendar for year 2025; (ii) Reviewed the Group’s sustainability gap assessment and the ESG Implementation Plan 2025/2026; and (iii) Reviewed the Sustainability Statement and recommended the same to the Board for inclusion in Annual Report 2024. 130 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M)
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