01 | ABOUT NEXG 02 | OUR LEADERSHIP 03| OUR PERSPECTIVE 04 | SUSTAINABILITY 05 | GOVERNANCE 06 | FINANCIAL STATEMENTS 07 | OTHER INFORMATION ANNUAL REPORT 2026 Audit and Risk Management COMMITTEE REPORT (CONT'D) During FY2026, the function of internal audit was performed by the Corporate Assurance Department (“CAD”) led by Encik Norirman Bin Nordin, who is a Certified Internal Auditor (“CIA”) and a professional member of Institute of Internal Auditors Malaysia (“IIAM”). In compliance with paragraph 15.27 of Bursa Listing Requirements, the CAD function reports directly and functionally to the ARMC on the adequacy and effectiveness of the internal control systems. The purpose, authority and responsibility as well as the scopes of work of the Internal Audit Function are outlined in the approved Internal Audit Charter. To ensure that the responsibilities of CAD are fully discharged in accordance with the applicable professional standards and its approved charter, the ARMC reviews the adequacy of the scopes and resources of the CAD function as well as the competency and experience of the CAD personnel. The total cost incurred in relation to the CAD function for the period up to August 2025 was approximately RM380,000. In September 2025, the Group appointed Morison LC Advisory Sdn Bhd (“MLCA”) to replace CAD as its Outsourced Internal Audit service provider. The MLCA internal audit (“IA”) team is led by a director with more than 10 years of experience in internal audit and risk advisory on various industries, including public listed companies. The managing director is assisted by a team of experienced consultants to discharge the IA function properly. The managing director is also a member of the Institute of Internal Auditors Malaysia. IA reports principally to the ARMC. The total audit and non-audit fees for the outsourced internal audit services provided by MLCA during the financial year ended 31 March 2026 amounted to RM22,500 and RM62,700 respectively. The ARMC reviews Management's proposals relating to the engagement, termination, performance evaluation and remuneration of the Internal Auditors ("IA"), and makes its recommendations to the Board of Directors for approval. IA provides independent appraisal and assurance for the review of the operations within the group in order to support the ARMC in fulfilling their oversight responsibility. The purpose is to evaluate and contribute to the improvement of risk management, control and governance systems of the group. IA has unfettered access to all the Group’s documents, records, properties and personnel, including the ARMC, and has appropriate standing with the Group in order for IA to discharge their function and duties properly. IA adopts a risk-based approach in developing its audit plan based on the group’s risk profile. The internal audit plan and the scope of internal audit are presented and approved by the ARMC on a yearly basis. Audit findings, recommendations and management’s corrective actions are reported regularly to the ARMC. The ARMC also reviews annually the adequacy and effectiveness of IA to ensure that IA has the capabilities to adequately perform its functions. In the ARMC’s opinion, the IA function is independent, effective and adequately resourced. During the year, IA has carried out its function according to the International Professional Practices Framework set by the Institute of Internal Auditors, which includes operational and internal control reviews based on prioritised risk areas identified and appropriate steps have been taken by management to address the findings and recommendations. This Report was made in accordance with the resolution of the Board of Directors passed on 25 June 2026. B. INTERNAL AUDIT FUNCTION 124
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