01 | ABOUT NEXG 02 | OUR LEADERSHIP 03| OUR PERSPECTIVE 04 | SUSTAINABILITY 05 | GOVERNANCE 06 | FINANCIAL STATEMENTS 07 | OTHER INFORMATION Governance Audit and Risk Management COMMITTEE REPORT (CONT'D) 2. External Auditors (Cont'd) ii. Performance, sustainability and competencies The ARMC assessed the performance, suitability and competencies of the External Auditors based on the following guidelines and criteria: iii. The Management confirmed that the External Auditors had: Calibre of the external audit firm, with international status, size and resources to conduct effective and constructive audits of listed issuers; Quality of processes and audit performance procedures covering quality control, the approach to seeking and assessing management representations, audit judgments and understanding of key issues and business intricacies, the extent of reliance placed on Management, and the achievement of quality audit performance targets; Audit team, with emphasis on the competencies, qualifications and experience of the Audit Engagement Partner, Engagement Quality Reviewer, Audit Manager and Audit Seniors, taking into consideration their familiarity with NexG Berhad's industry and operational activities; Adequacy and appropriateness of audit scope, planning and conduct of work in line with related risks and internationally recognised best practices; Fairness and reasonableness of audit fees in relation to the scope, size and complexity of the audit assignments; Quality and timeliness of communications and resolution of audit issues and recommendations, in an atmosphere of sound and professional engagement between the External Auditors and the relevant personnel of the Company and of the Group. Maintained active and productive engagement and communications with relevant Management personnel in the conduct of the audit; and Substantiated the proposed audit fees as competitive and reasonable, based on the complexities, volume of transactions and time spent on the audit. Having regard to the meetings held with the External Auditors, the ARMC was satisfied with the extent of communication and interaction with the audit engagement partner and team, which clearly demonstrated their independence, objectivity and professionalism. The outcome of the performance assessment supported the ARMC's recommendation to the Board for the re-appointment of PKF Malaysia as the External Auditors of the Company and of the Group for the ensuing year. The Board, at its meeting in May 2026, was satisfied with the effective assessment procedures performed and reported by the ARMC and approved the recommendation to re-appoint PKF Malaysia, subject to shareholders' approval to be sought at the forthcoming Annual General Meeting. - - - - - - a) b) A. SUMMARY OF ACTIVITIES OF THE AUDIT AND RISK MANAGEMENT COMMITTEE FOR THE FINANCIAL YEAR ENDED 31 MARCH 2026 (CONT'D) 121
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