140 YINSON HOLDINGS BERHAD GOVERNANCE SUMMARY OF WORK PERFORMED In FY2026, the AC carried out its duties in accordance with its TOR and the activities are summarised as follows: A) Compliance And Internal Control • Evaluated the overall adequacy and effectiveness of the Group’s internal controls system and management information system through review of the work performed by both internal and external auditors. • Reviewed the extent of compliance with established internal policies, standards, plans, procedures, laws and regulations. B) Financial Reporting • Reviewed the unaudited quarterly financial results and annual audited financial statements of the Group, before recommending them for the Board’s approval. • The AC’s review focused on significant audit and accounting matters highlighted, including Management’s judgments, estimates, and assessments. • Discussed the application of major accounting policies and practices to ensure that the Group’s financial statements had been prepared in compliance with approved accounting standards. c) Internal audit • Reviewed and approved the annual IA plan proposed by Group Internal Audit (“GIA”) Department. • Reviewed and approved GIA’s staffing requirements and budget to ensure adequacy of resources and competencies within GIA. • Discussed with the internal auditors on risk considerations, scope of work, functions, adequacy and competency of resources and coordination with external auditors. • Conducted four private sessions with internal auditors in March, June, September, and December 2025, without the presence of Executive Directors and/or Management. • Reviewed the reports prepared by GIA on the state of internal control and adequacy of the audited coverage scope. • Reviewed the independent assessment and verification performed on whistleblowing cases. • Monitored the outcome of the audits and follow-up audits conducted to ascertain all agreed action plans were adequately implemented and recommended to Board on additional measures as deemed fit. • Assessed annually the performance of GIA in accordance to MCCG requirements and reviewed its effectiveness in the audit process. d) External audit • Discussed with the external auditors the annual audit plan, nature and scope of audit as well as audit procedures, prior to the commencement of audit. • Conducted three private sessions with external auditors in March, September and December 2025, without the presence of Executive Directors and/or Management. • Reviewed the external auditors’ audit findings for the financial year under review. • Reviewed with the external auditors the Statement on Risk Management & Internal Control (“SORMIC”) of the Group for inclusion in the Annual Report. • Reviewed annually the overall performance of the external auditors, including assessment of their independence, technical competency, resources and reasonableness of their audit fees and non-audit fees. e) Other matters • Reviewed and monitored the COI situations and Recurrent Related Party Transactions. • Reviewed and recommended the dividend payout. INTERNAL AUDIT FUNCTION The GIA function is carried out by an in-house IA team comprising of seven members in FY2026. The GIA function provides independent assurance to the AC on the adequacy and effectiveness of the Group’s risk management, internal control and governance processes. To preserve its impartiality and objectivity, GIA reports functionally to the AC and administratively to the Group CEO. The GIA function operates under the Internal Audit Charter approved by the AC and performs IA reviews in accordance with the International Professional Practice Framework (“IPPF”), set forth by the Institute of Internal Auditors. GIA carried out audit engagements according to the IA plan approved by the AC. These audits were undertaken to provide assurance that internal controls are properly established and operating as intended to support effective and efficient operations in line with applicable policies, guidelines and procedures. GIA conducted risk-based independent reviews covering the Group’s operations and management information system. These resulted in recommendations to enhance internal controls and improve work processes. During FY2026, a total of nine IA reports, comprising audit findings, recommendations and management’s responses, were reported to the AC and issued to the Management of the relevant businesses. Management is responsible for implementing corrective and/or improvement actions within the stipulated timeframe, while GIA monitors progress quarterly and reports the implementation status to the AC.
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