OUR GOVERNANCE 150 The AC and the Board are of the opinion that the internal audit function is effective and able to function independently. The performance and appointment of Sterling Business Alignment Consulting Sdn Bhd as the Groups’ internal auditors is also subject to annual review and approval by the AC and Board. In FY2025, the Internal Auditors have conducted an internal audit on the following functions: Audit Period Reporting Month Name of Entity(ies) Audited Audited Areas 1st Quarter of FY2025 (January – March 2025) May 2025 MST Golf Sdn Bhd MST Golf (Singapore) Pte Ltd PT MST Golf Distribution PT MST Golf Indonesia • Buying (Procurement and Sourcing) 2nd Quarter of FY2025 (April – June 2025) August 2025 MST Golf (Singapore) Pte Ltd • Retail/ Outlet Operation Management • Warehouse, Inventory and Logistics Management • Corporate Sales, Wholesales and Export Sales 3rd Quarter of FY2025 (July – September 2025) November 2025 MST Golf Sdn Bhd MST Golf (Singapore) Pte Ltd PT MST Golf Distribution PT MST Golf Indonesia • Follow Up Audits 4th Quarter of FY2025 (October – December 2025) February 2026 PT MST Golf Distribution PT MST Golf Indonesia • Retail/ Outlet Operation Management • Warehouse, Inventory and Logistics Management • Corporate Sales, Wholesales and Export Sales Risk Management Function The Board continues to apply the ERM Framework, which the Board reviews on a biannual basis as part of the risk management report by the Head of Risk and Control. The Head of Risk and Control continues to conduct risk management workshops with the Risk Management Working Group to: (a) Maintain or increase awareness on the importance of embedding risk management in their respective functions. (b) Equip them with the methods of the ERM Framework. (c) Produce comprehensive risk registers of the various departments and functions, which include risk ratings and control activities. In FY2025, the Head of Risk and Control has presented to the GRSC and the Board risk management reports that contain the risk registers for all functions within the Group (and their corresponding control activities and ratings), highlighting the following: (a) Overview of risk management framework. (b) Key changes in the risk register (current vs. previous). (c) Key risks identified (including their likelihood and impact ratings) (d) Distribution of the risks in the risk matrix. (e) Distribution of the risks across departments and functions. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
RkJQdWJsaXNoZXIy NDgzMzc=