01 | ABOUT NEXG 02 | OUR LEADERSHIP 03| OUR PERSPECTIVE 04 | SUSTAINABILITY 05 | GOVERNANCE 06 | FINANCIAL STATEMENTS 07 | OTHER INFORMATION ANNUAL REPORT 2026 PRINCIPLE B - EFFECTIVE AUDIT AND RISK MANAGEMENT (CONT'D) I. ARMC (Cont'd) II. RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK Corporate Governance OVERVIEW STATEMENT (Cont’d) External Auditors and its Independence (Cont'd) Risk Management and Internal Controls Internal Audit Function The ARMC received confirmation from Messrs. PKF 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 2026, the Board approved the ARMC’s recommendation for the Company to seek the shareholders’ approval for the re-appointment of Messrs. PKF PLT as External Auditors of the Company at the Eighteenth AGM. The Board acknowledges its overall responsibility for maintaining an effective system of internal control and risk management within the Group. This includes ensuring the effectiveness and efficiency of operations, the adequacy of internal financial controls, risks and opportunities are identified and addressed in a timely manner and compliance with applicable laws, regulations, internal procedures, and guidelines. In May 2025, the Board approved the combination of the Audit Committee and Risk Management Committee into single Committee, known as the ARMC. The Board is supported by the ARMC which serves as an oversight body responsible for periodically reviewing the Group’s control systems and continuously assessing the adequacy and effectiveness of risk management and internal control processes and practices. The Board is also responsible for ensuring that risks and opportunities are identified and addressed in a timely manner to safeguard shareholders’ investments and the Group’s assets. Details of the Group’s risk management framework and internal audit function are set out separately in the Statement on Risk Management and Internal Control in this Annual Report made pursuant to Paragraph 15.26(b) of the MMLR of Bursa Malaysia. The internal audit function of the Group is outsourced to an independent professional consulting firm, Morison LC Advisory Sdn Bhd (“Morison”). The engagement of Morison provides an independent assessment and assurance on the Group’s system of internal control to the ARMC. Details of the activities of the Internal Auditors during the financial year under review are set out in the ARMC Report of this Annual Report. 114
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