ANNUAL REPORT 2025 95 GOVERNANCE THE PROCESS OF THE AUDIT COMMITTEE (CONT’D) A. SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE FOR THE FINANCIAL YEAR ENDED 31 MARCH 2025 (CONT’D) 1. Financial Reporting (Cont’d) c. Reviewed and discussed with the Management on the adequacy of processes and controls in place for an effective and meaningful financial reporting and disclosures in support of the integrity of financial information issued by the Group. d. Reviewed and discussed with the Management on the appropriateness of bases and relevant documentations as evidence in support of the recoverability and fair value of major assets. e. Reviewed and discussed with the Management on new developments in accounting standards that may have bearing on financial reporting and disclosures. Reasonable assurances on the implementation of applicable changes/new developments noted were also obtained from the Management, as applicable. f. Reviewed and discussed with the Management on the Annual Group Budgets for FY2024/2025 concerning the financial performance as well as the financial position as at 31 March 2025. The reviews performed include also related cash flow budgets, appropriateness of basis and assumptions applied as well as tracking of the budgets and conduct of proper budgetary controls exercised by the Management. 2. External Auditors a. In February 2025, reviewed and discussed the Audit Planning Memorandum of the External Auditors for the financial year ending 31 March 2025. This covers the engagement and reporting requirements, audit approach, areas of audit emphasis particularly in relation to the key audit matters, significant events during the year, group audit, reliance on internal audit, engagement team, reporting and deliverables, proposed audit fees, responsibilities of Directors and Auditors, independence of Auditors and the new developments in accounting standards. b. In May 2025, reviewed and discussed the Audit Review Memorandum issued by the External Auditors in relation to the completion of the annual year-end audit, covering on key audit observations, misstatements, observation on the internal controls as part of their auditing procedures, status of group audit, fees and the list of outstanding confirmations and information, amongst others. c. In May 2025, reviewed and discussed the draft Audited Financial Statements of the Company and of the Group for the financial year ended 31 March 2025 and the draft Annual Report 2024/2025 which encompasses all relevant disclosure statements in line with MMLR before recommending of the same to the Board for approval. d. In accordance with the External Auditors Assessment Policy and paragraph 15.21 of MMLR, the Audit Committee had in May 2025 undertook an annual assessment on the performance of the External Auditors focusing on issues of their suitability, objectivity and professional independence together with the Chief Financial Officer/ Executive Director and the Management. The External Auditors’ Assessment Policy is available for reference on the Company’s website at www.nexg.com.my. A questionnaires checklist was used to determine the minimum performance assessment procedures on the quality and effectiveness of the external audit functions for purposes of reaching the decision as to whether to recommend to the Board on the question of their re-appointment. The assessment procedures also considered the information disclosed by the External Auditors in their Annual Transparency Reporting particularly in areas related to their legal and governance structure, measures to uphold audit quality and manage risks, and measurement of audit quality indicators as emphasized in the announcement issued by the Securities Commission’s Audit Oversight Board (“AOB”) in April 2022. Input and feedback were also obtained from the Management who had close contact and involvement with the External Auditors throughout the financial year to assess on the level of professionalism conducted and as shown by the External Auditors in the undertaking of the annual audit. Audit Committee Report (Cont’d)
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