Internal audit • Reviewed, discussed and approved the outsourced internal auditors’ audit plan (covering the scope of work, subsidiaries being audited, estimated number of man-days, audit schedule and reporting timeline) and fees for the FYE 31 August 2025 before recommending for the Board’s endorsement; and • Reviewed and deliberated on the outsourced internal auditors’ reports as detailed in the Internal Audit Function section below and follow up on the actions taken by the Management in addressing the issues and recommendations raised by the internal auditors. Risk management • Reviewed the updated Registry of Risks and Risk Matrix prepared by the Risk Management Team (“RMT”). While the total number of risk factors have remained consistent, the Audit Committee noted refinements in the scope and descriptions of certain risks, particularly the redefinition of the raw materials risk to include fluctuations in rawmaterial prices, labour costs and production-related expenses. The Audit Committee also noted that the overall risk ratings remained unchanged. Others • During the FYE 31 August 2025 there were no related party transactions, recurrent related party transactions, conflict of interest or potential conflict of interest reported to the Audit Committee. The Directors and key senior management undertake to inform the Company immediately if and when they become aware of any conflict of interest or potential conflict of interest and recuse themselves from the relevant deliberations and decisions where such conflict may be present. INTERNAL AUDIT FUNCTION The internal audit function of the Group is outsourced to Sterling Business Alignment Consulting Sdn Bhd, an external professional firm which is independent of the activities and operations of the Group. They carried out review on the adequacy of the internal control system of the Group. The outsourced internal auditors report directly to the Audit Committee. A summary of the work carried out by the outsourced internal auditors during the FYE 31 August 2025 is as follows: • Prepared and presented an internal audit plan for the FYE 31 August 2025 to the Audit Committee. The focus of the internal audit plan for the FYE 31 August 2024, as approved by the Audit Committee was on major subsidiaries of the Company; • Undertook the internal control assessment in accordance with the internal audit plan for the FYE 31 August 2025, covering the following companies and functional areas/sections: • Sasbadi Sdn Bhd – Management Information System / Information Technology – Personal Data Protection • Edu Paper And Stationery Sdn Bhd – Sales and Marketing – Finance and Accounts • Undertook follow-up review on previously reported audit findings to ensure weaknesses identified have been or are being addressed; and • Presented the reports on internal control assessment setting out their findings and recommendations, and Management’s responses and actions, to the Audit Committee for deliberation. The fees incurred by the Group in relation to outsourced internal audit function for the FYE 31 August 2025 were RM33,500. SASBADI HOLDINGS BERHAD 68 Audit Commi ee Report (conঞ nued)
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