01 | ABOUT NEXG 02 | OUR LEADERSHIP 03| OUR PERSPECTIVE 04 | SUSTAINABILITY 05 | GOVERNANCE 06 | FINANCIAL STATEMENTS 07 | OTHER INFORMATION ANNUAL REPORT 2026 With reference to MIA Circular No. 25/2018 on the change in partner rotation period, the lead engagement partner and engagement quality reviewer partner for the financial statements of NexG Berhad are subject to a seven-year rotation with a three-year cooling-off period. The Audit Engagement Partner and Engagement Quality Reviewer were appointed in 2026 respectively and will be due for rotation in 2033 respectively. Reviewed and discussed the progress of the implementation and assessment of new accounting standards applicable to and adopted by the Group, the details of which are set out in the financial statements incorporated in the Annual Report. The adoption of new accounting standards is not expected to have a material impact on the financial statements of the Group and of the Company, as stated therein. Reviewed the Statement on Risk Management and Internal Control for the financial year ended 31 March 2026, together with the report extended by the External Auditors in accordance with the Audit and Assurance Practice Guide 3 (“AAPG 3”), Guidance for Auditors on Engagements to Report on the Statement on Risk Management and Internal Control included in the Annual Report, issued by the Malaysian Institute of Accountants. For the financial year ended 31 March 2026, the ARMC held several private meetings with the External Auditors without the presence of Executive Directors and Senior Management. There were no significant unfavourable matters raised by the External Auditors that warranted the attention of the ARMC or Senior Management. Reviewed and discussed the Internal Audit Reports comprising audit observations, recommendations and the corrective actions agreed and committed by Management, to ensure all key risks are addressed on a timely basis with mitigating controls in place. There were two (2) Internal Audit Reports issued by the Corporate Assurance Department and Outsourced Internal Auditors for the financial year ended 31 March 2026, that were aligned with the Annual Internal Audit Plans approved by the ARMC. The audit observations are highlighted and discussed to improve the overall effectiveness of the internal control system. The Internal Audit Reports were also shared with and reviewed by the External Auditors for audit planning purposes, to facilitate effective coordination and to guide their audit strategies and procedures. Reviewed the performance, progress and activities of the internal audit function on a quarterly basis, covering the following aspects: f) g) h) i) a. b. Audit and Risk Management COMMITTEE REPORT (CONT'D) 2. External Auditors (Cont'd) 3. Internal Auditors The status of completion of planned audit assignments and other compliance work as per the approved Annual Internal Audit Plan; Modifications to the approved Annual Internal Audit Plan, if any, to accommodate ad-hoc audit assignments requested by Management, the Executive Committee, the ARMC or the Board, or as a result of changes in business operations and corporate developments of the Group; Adequacy of resources, skills and competencies of internal audit personnel. To ensure a mix of skilled and competent auditors in the Corporate Assurance Department and Outsourced Internal Auditors, the ARMC reviewed applicable training and development programmes attended by internal audit personnel and encouraged them to pursue relevant professional certification programmes; i. ii. iii. A. SUMMARY OF ACTIVITIES OF THE AUDIT AND RISK MANAGEMENT COMMITTEE FOR THE FINANCIAL YEAR ENDED 31 MARCH 2026 (CONT'D) 122
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