Press Metal Aluminium Holdings Berhad SECTION 4 • EFFECTIVE STEWARDSHIP THROUGH GOOD GOVERNANCE 82 Audit Committee Report INTERNAL AUDIT FUNCTION (CONT’D) A risk-based audit approach is implemented to ensure that higher risk activities in each auditable area are audited more frequently. This is designed to evaluate and enhance risk management, control and governance processes to assist the Management in achieving its corporate goals. The audits further help to ensure that appropriate instituted controls are in place and effectively applied, and risk exposures are mitigated to an acceptable level in accordance with the Group’s risk management policy. The Group has an in-house Internal Audit Department (“Group Internal Audit”) which provides the IA function to the Group. The Group Internal Audit is additionally supported by a professional firm providing specific outsourced IA services, namely Baker Tilly Monteiro Heng Governance Sdn Bhd (“BTMHG”) who conducted the independent IA review on the RPTs of the Group. Both Group Internal Audit and BTMHG report directly to the AC and have affirmed to the AC that they are free from any relationships or conflicts of interest in respect of the Group or the Company which could impair their objectivity and independence. The in-house Internal Audit function is headed by Internal Audit Manager, Mr. William Tu Heng Yew, who has over 15 years of IA experience. He holds a Bachelor of Degree in Business, is a Certified Internal Auditor (“CIA”) and a Chartered Member of the Institute of Internal Auditors Malaysia (“IIAM”). The Internal Audit Manager reports directly to the AC. The in-house Internal Auditor carries out its review based on the approved risk-based IA Annual Plan and their main responsibility is to provide an objective and independent evaluation of the adequacy and efficacy of the Group’s governance, risk management and internal control. During FYE2024, the in-house Internal Auditors initiated the development of the Internal Audit System, focusing on digitalisation. The system was rolled out in the first quarter of 2025, with the second phase scheduled for deployment in the fourth quarter of 2025. The Company has put in place internal controls, guidelines and procedures to ensure that RPTs and RRPTs are entered into on normal commercial terms and on terms which are not more favourable than those generally available to third parties dealing on arms’ length basis and are not detrimental to the minority shareholders of the Company. During the FYE2024, the Group Internal Audit developed an audit plan using risk-based approach and carried out the assignments according to the audit plan for the year. The Group Internal Audit performed operational audits on business units of the Group to ascertain the adequacy of the internal control systems and made recommendations for improvement where weaknesses exist in accordance with the Internal Audit Plan approved by the AC. The auditable entities and business processes are as follows: Name of entity Auditable areas Press Metal Aluminium Holdings Berhad • Human Resource Management Press Metal Bintulu Sdn. Bhd. • Power Distribution Department Management • Electrolysis Support Management • Electrolysis Management • Electrolysis Maintenance Management • Cast House Production Management • Cast House Maintenance Management • Accounting and Finance Management • Sales and Marketing Management Press Metal Sarawak Sdn. Bhd. • Cast House Production Management • Cast House Maintenance Management • Sales and Marketing Management Press Metal Aluminium Rods Sdn. Bhd. • Admin (Water, Gas and Electric) Management • Spare Part Management • Maintenance Management • Procurement Management • Accounting & Finance Management • Information Technology Management PMB Aluminium Sdn. Bhd. • Tooling Management • Extrusion Management • Finishing, Fabrication and Packaging Management
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