• In the course of conducting annual statutory audit, the External Auditors will highlight any significant audit, accounting and internal control matters which require attention of the Board, the Audit Committee and Risk Management Committee. At least once a year, the Audit and Risk Management Committee shall meet the External Auditors without the Executive Directors and management being present. This year, the Audit Committee had communicated and met with the Internal Auditors on 28 February 2023 and External Auditors on 22 May 2023 without the Executive Directors and management being present. On 28 February 2023, the Audit Committee met with the Internal Auditors to highlight on certain internal audit issues which are required for attention. • Whistleblowing Policy The Group has instituted a whistleblowing policy with facilitating feedback channels to allow anyone in the Company to disclose information pertaining to misconduct or improprieties in a safe and secure manner. The confidentiality of the whistleblower is assured throughout the process. There were no reports on this during the FY2023. MONITORING AND REVIEW OF THE ADEQUACY AND INTEGRITY OF THE SYSTEM OF INTERNAL CONTROL The Board considered the risk management and internal control process in the Group during the financial year to be adequate and effective. A review on the adequacy and effectiveness of the risk management and internal control system has been undertaken based on information from: a) Management within the organisation responsible for the development and maintenance of the risk management and internal control framework; b) Assessments of major business units and functional controls by respective management to complement the above input in providing a holistic view on the effectiveness of the Group’s risk and control framework; and c) The work by the Internal Audit function in accordance with the Internal Audit Plan document highlighting the key processes, which have been defined based on the Risk Profile of the Group as well as Internal Audit reports to the Audit and Risk Management Committees together with recommendations for improvement. The Audit and Risk Management Committees will address and monitor the implementation of key action plans and any internal control weakness and ensure continuous process improvement. During the financial year under review, a number of improvements to internal controls were identified and addressed. There have been no significant weaknesses noted which have resulted in any material losses. The Board has been assured by the Group Managing Director and Chief Financial Officer that the Group’s risk management and internal control system is operating adequately and effectively, in all material aspects, based on the risk management and internal control system of the Group. The Board considers the system of internal control described in this statement to be satisfactory and the risks to be at an acceptable level within the context of the Group’s business environment. As the development of an efficient system of internal control is an ongoing process, the Board and management maintain an ongoing commitment to continue taking appropriate measures to strengthen the risk management and internal control environment of the Group. RISKS REVIEW FOR THE FINANCIAL YEAR A half-yearly review on the adequacy and effectiveness of the risk management and internal control system have been undertaken for the financial year under review. During the financial year under review, each business unit via its respective working groups, comprising personnel at all levels carried out the following areas of work for periodic review:- • Conducted reviews and updates of risk profiles of principal risks and emerging risks which will potentially derail the achievement of the business objectives and goals. • Evaluated the adequacy of key processes, systems, and internal controls in relation to the rated principal risks, and established strategic responses, actionable programmes and tasks to manage the aforementioned and/or eliminate performance gaps. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 126 OUR GOVERNANCE
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