01 | ABOUT NEXG 02 | OUR LEADERSHIP 03| OUR PERSPECTIVE 04 | SUSTAINABILITY 05 | GOVERNANCE 06 | FINANCIAL STATEMENTS 07 | OTHER INFORMATION Governance PRINCIPLE B - EFFECTIVE AUDIT AND RISK MANAGEMENT I. ARMC Corporate Governance OVERVIEW STATEMENT (Cont’d) Composition of ARMC Financial Reporting Process External Auditors and its Independence The ARMC of the Company comprises three (3) members, all of whom are Independent Non-Executive Directors, in compliance with Paragraphs 15.09 (1)(a) and (b) of the MMLR of Bursa Malaysia. None of the AC members were former partners of the Company’s auditors. To ensure the overall effectiveness and independence of the ARMC, the positions of the Chairman of the Board and Chairman of the ARMC are held by different persons. The ARMC is chaired by an Independent Non-Executive Director, Ms Michelle Yong Voon Sze. In May 2026, the NRC conducted annual review of the terms of office and performance of the ARMC and its members. Collectively, the ARMC members possess a wide range of necessary skills to discharge their duties and responsibilities. The ARMC as a whole is financially literate and are able to understand matters under the purview of the ARMC including the financial reporting process. The NRC is satisfied that the ARMC and its members have carried out their duties in accordance with their terms of reference. The ARMC members will undertake continuous professional development to keep themselves abreast with the relevant developments in accounting and auditing standards, practices and rules. The Terms of Reference of the ARMC is available for reference on the Company’s website at www.nexg.com.my. The composition and details of the activities carried out by the ARMC for the financial year under review are set out in the ARMC Report of this Annual Report. The Board takes responsibility to provide a balanced and meaningful assessment of the Group’s financial performance and position primarily through the financial statements of the Company and of the Group, quarterly management report and accounts and quarterly financial results to Bursa Malaysia, Chairman’s Statement and Management Discussion and Analysis in the Annual Report. The Board is assisted by the ARMC and Chief Financial Officer in overseeing and governing the Group’s financial reporting processes and the quality and integrity of its financial information. The Directors’ Responsibilities Statement in respect of the preparation of the Annual Audited Financial Statements is set out separately in this Annual Report. The annual evaluation of the External Auditors provides the ARMC 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 ARMC to review, assess and monitor the competency of the External Auditors. In May 2026, the ARMC conducted an annual performance evaluation of the external auditors, Messrs. PKF PLT, to assess their effectiveness, quality of audit, adherence to regulatory and professional standards and overall performance. The ARMC also reviewed the suitability and independence of Messrs. PKF PLT as External Auditors of the Company including the non-audit services provided by them for the financial year under review. This enable the ARMC 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 External Auditors Assessment Policy is available for reference on the Company’s website at www.nexg.com.my. 113
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