Relationship with Auditors The Company has established a formal, transparent and appropriate relationship with the Company’s auditors, both internal and external. The internal auditors and the external auditors have direct access to the ARMC at all times. From time to time, the auditors will highlight to the ARMC and the Board matters that require the ARMC’s and the Board’s attention. The ARMC meets with the external auditors at least twice a year without the presence of Executive Directors and Management to discuss their audit plan and audit findings. The ARMC reviews with the external auditors the annual audited financial statements before recommending them to the Board for its approval. The ARMC assesses the effectiveness of both internal and external audit as well as the suitability, independence and objectivity of the external auditors. In its assessment, the ARMC considered several factors, which included adequacy of experience and resources of the firm and the professional staff assigned to the audit as well as the effectiveness of the audit process. Written assurance shall be obtained from the external auditors yearly, confirming their independence in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants and the International Code of Ethics for Professional Accountants (including International Independence Standars). Being satisfied with the external auditors, Ernst & Young PLT’s (“EY”) technical competency and audit independence, the ARMC recommended the appointment of EY as external auditors for FY2024. The Board at its meeting held on 3 April 2025 approved the ARMC’s recommendation for the shareholders’ approval to be sought at the Sixteenth AGM on the re-appointment of EY as external auditors of the Company for FY2025. C. APPROACH TO SUSTAINABILITY The Board is responsible for the governance of sustainability in the Group including setting the Group’s sustainability strategies, priorities and targets. The Board also ensures the adequacy of the Group’s framework for risk management and internal controls which are crucial to the Group’s sustainability. The Group’s sustainability framework is disclosed in page 28 of the Annual Report 2024. The Board takes into account sustainability considerations when exercising its duties including among others the development and implementation of company strategies, business plans, major plans of action and risk management. Assessing the issues that are most material to us and our stakeholders in the environmental, social and governance contexts will enable us to continue to operate effectively and sustainably. The Group’s sustainability measures, framework for risk management, material sustainability matters (“MSM”), and controls measures are disclosed in page 31 of the Annual Report 2024. The Group is committed to being accountable and responsive to the expectations and interests of its stakeholders. The Group identified the key stakeholder groups, the corresponding sustainability focus areas and the mode of engagement with such stakeholders as disclosed in pages 29 to 30 of the Annual Report 2024. The Group ensures that its communication with the internal and external stakeholders are transparent and timely. The Group stay abreast with and understand the sustainability issues by way of regular engagement with the various stakeholders to gain insight as to their concern, attending seminar/training, engagement of consultant to advise the Group on environmental matters in the Group’s conduct of business, participation in Request of Information exercise of large project to gain early insight as to the likely expectation of the project owner as to the technical, financial resources and other aspects in relation to the project, and the trend of future demand. The Management updates the Board on sustainability matters quarterly. The performance evaluations of the Board and Senior Management includes review of their performance in addressing the company’s material sustainability risks and opportunities. CORPORATE GOVERNANCE OVERVIEW STATEMENT 061 ANNUAL REPORT 2024
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