Press Metal Annual Report 2024

Press Metal Aluminium Holdings Berhad SECTION 4 • EFFECTIVE STEWARDSHIP THROUGH GOOD GOVERNANCE 72 PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT I. Audit Committee The Board upholds the integrity of financial reporting. The AC is entrusted to provide advice and assistance to the Board in fulfilling its statutory and fiduciary responsibilities relating to the Company’s internal and external audit functions, risk management, compliance systems and practices, financial systems, accounting and control systems and matters that may significantly impact the financial condition or affairs of the business. The AC is also responsible for ensuring that the financial statements of the Company comply with the applicable financial reporting standards in Malaysia. The AC comprises four (4) Independent Non-Executive Directors who play a key role in ensuring the integrity and transparency of corporate reporting. None of the AC members were former audit partners who are required to observe a cooling-off period of at least three (3) years before being appointed in accordance with the TOR of the AC. The AC provides robust and comprehensive oversight on financial reporting, objectivity and effectiveness of internal and external audit processes, reportable related party transactions, conflict of interest and potential conflict of interest situations as well as risk management matters. The AC Chairman is distinct from the Chairman of the Board. All AC members possess the requisite financial literacy and business knowledge that support the sound understanding of matters under their purview. The AC’s composition, term of office and performance are subject to annual review by the NCGC to determine whether the AC as a whole and its members have carried out their duties in accordance with the TOR of the AC, before recommendation to the Board for assessment. The Board is satisfied that the AC members discharged their functions, duties and responsibilities in accordance with the AC’s TOR. The AC has unrestricted access to both the internal and external auditors, who report functionally and directly to the AC. The AC has established transparent arrangements to maintain an appropriate relationship with the Company’s auditors. Assessment of Suitability, Objectivity and Independence of External Auditors In the annual assessment of the suitability, objectivity and independence of the External Auditors, the AC is guided by the factors as prescribed under Paragraph 15.21 of the MMLR of Bursa Securities. The AC is also to consider the performance of the External Auditors and its independence as below: (a) The External Auditors’ ability to meet deadlines in providing services and responding to issues in a timely manner as contemplated in the Audit Planning Memorandum; (b) The competence, audit quality and resources capacity of the External Auditors in relation to the audit; (c) The information presented in the Annual Transparency Report of the audit firm; (d) The nature of the non-audit services provided by the External Auditors and fees paid for such services relative to the audit fee; and (e) Whether there are safeguards in place to ensure that there is no threat to the objectivity and independence of the audit arising from the provision of non-audit services or tenure of the External Auditors. In the fourth quarter of 2024, the Company’s External Auditors, KPMG PLT presented its 2024 Audit Plan which outlined its engagement team, audit timeline and areas of audit emphasis for the AC’s review. As part of the AC’s review processes, the AC has obtained assurance from KPMG PLT, confirming that they are and have been independent throughout the conduct of the audit in accordance with the terms of relevant professional and regulatory requirements. Based on the AC’s assessment of the External Auditors, the Board is satisfied with the independence, quality of service and adequacy of resources provided by the External Auditors in carrying out the annual audit for the FYE2024. In view thereof, the Board has recommended the re-appointment of the External Auditors for the approval of shareholders at the forthcoming 9th AGM. Corporate Governance Overview Statement

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