ANNUAL REPORT 2025 90 GOVERNANCE PRINCIPLE B - EFFECTIVE AUDIT AND RISK MANAGEMENT (CONT’D) I. AC (CONT’D) External Auditors and its Independence The annual evaluation of the External Auditors provides the AC with a disciplined approach for maintaining effective oversight of the External Auditors’ performance. The objective of this External Auditors Assessment Policy is to outline the guidelines and procedures for the AC to review, assess and monitor the competency of the External Auditors. During the financial year under review, the AC had private meetings with the External Auditors, Crowe Malaysia PLT without the presence of the Executive Board members and Management to discuss audit activities and matters related to the Group. The AC members undertook continuous professional development to keep themselves abreast with the relevant developments in accounting and auditing standards, practices and rules. The External Auditors Assessment Policy is available for reference on the Company’s website at www.nexg.com.my. The AC assessed the performance, suitability and independence of Messrs Crowe Malaysia PLT as External Auditors of the Company as well as reviewed the non-audit services provided by them for the financial year under review. This enable the AC to determine that the nature of the non-audit services would not adversely impair the External Auditors’ professional independence and that the related fees levied are fair and realistic. The AC also received confirmation from Messrs Crowe Malaysia PLT that they will continuously comply with the relevant ethical requirements regarding professional independence with respect to the audit of the Group in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants and the Malaysian Institute of Accountants’ By-Laws (On Professional Ethics, Conduct and Practice). In May 2025, the Board approved the AC’s recommendation for the Company to seek the shareholders’ approval for the re-appointment of Messrs Crowe Malaysia PLT as External Auditors of the Company at the Seventeenth AGM. II. RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK Risk Management and Internal Controls The RMC of the Company comprises of three (3) members, all of whom are Independent Non-Executive Directors. The RMC was established to assist the Board in overseeing risk management framework and policies in order to manage the overall risk exposure of the Group. The Board is responsible for ensuring that risks and opportunities are identified on a timely basis to continuously safeguard the shareholders’ investment and the Group’s assets. The Board is assisted by the Risk Management Committee to perform continuous review and monitor on the adequacy and effectiveness of risk mitigation plans and internal control measures pertaining to the key risks. The Statement on Risk Management and Internal Control made pursuant to Paragraph 15.26(b) of the MMLR of Bursa Malaysia is separately set out in this Annual Report. The Terms of Reference of the RMC is published on the Company’s website at www.nexg.com.my. Internal Audit Function The Internal Audit function is led by the Chief Internal Auditor who reports functionally to the AC and administratively to the Executive Chairman. Details of the Group’s internal control systems are set out separately in the Statement on Risk Management and Internal Control and the AC Report in this Annual Report. Corporate Governance Overview Statement (Cont’d)
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