01 | ABOUT NEXG 02 | OUR LEADERSHIP 03| OUR PERSPECTIVE 04 | SUSTAINABILITY 05 | GOVERNANCE 06 | FINANCIAL STATEMENTS 07 | OTHER INFORMATION Governance The Board of Directors (“the Board”) of NexG Berhad (“the Group”) is pleased to present the Statement on Risk Management and Internal Control of the Group, which outlines the main features of the Group's risk management and internal control system for the financial year ended 31 March 2026, pursuant to Paragraph 15.26(b) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Malaysian Code of Corporate Governance (“MCCG”) and the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers (“Guidelines”). The Board and Management uphold their ongoing commitment to embedding and improving the risk management and internal control system within the culture, processes and structure of the Group. The Group continues to integrate risk management processes and internal controls into management processes and business activities. These efforts continued to evolve on a progressive basis for the financial year ended 31 March 2026 and up to the date of approval of this Statement for inclusion in the 2026 Annual Report. The Board recognises the importance of a sound risk management and internal control system in ensuring the reliability and integrity of financial and operational information, the effectiveness and efficiency of operations, the safeguarding of assets and compliance with applicable laws, regulations, policies, procedures and contracts. Accordingly, the Board, with assurance from the Executive Directors and Management, affirms its overall responsibility for the Group's risk management and internal control system. Oversight of these critical areas is exercised by the Audit and Risk Management Committee (“ARMC”), which are empowered by their respective terms of reference to provide oversight and conduct regular reviews of the risk management and internal control systems to meet the Group's objectives and to support continuous improvement. The Board acknowledges the inherent limitations of any risk management and internal control system. Accordingly, the systems are designed to manage and minimise the extent and severity of risks, rather than to eliminate completely the risk of failure to achieve the Group's objectives and strategies. The Board therefore recognises that a sound internal control system provides reasonable, but not absolute, assurance that the Group will not be hindered in achieving its business objectives in the ordinary course of business. Executive Directors and Key Senior Management are accountable to the Board and are responsible for implementing the processes of identifying, evaluating, monitoring and reporting risks, as well as for the effectiveness of internal control systems, and for taking appropriate and timely corrective actions as required. Regular reports on risks identified and actions taken to mitigate such risks, and on any gaps in the internal control systems, are presented to the ARMC and ultimately to the Board. Executive Directors and Key Senior Management have provided assurance to the Board that the Group's risk management and internal control systems are operating adequately and effectively in all material respects, based on the risk management framework and internal control systems adopted by the Group. Risks are managed by ensuring that adequate controls and mitigation plans are in place and that improvements are made as and when the need arises. INTRODUCTION RESPONSIBILITIES Board Responsibilities Executive Directors and Key Senior Management Responsibility Statement on Risk Management AND INTERNAL CONTROL 125
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