B. EFFECTIVE AUDIT AND RISK MANAGEMENT I. Audit Committee The current AC comprises exclusively Independent Non-Executive Directors, all of whom are financially literate and possess a sufficient understanding of the Group’s business. Additionally, all the members of the AC undertake continuous professional development to remain updated on relevant developments in accounting and auditing standards, practices, and rules. The composition of the AC is presented in the AC Report in this IAR2025. The Chairman of the AC is not the Chairman of the Board, ensuring the objectivity of the Board’s review of the AC’s findings and recommendations remains intact. The AC has adopted a Terms of Reference that outlines its goals, objectives, duties, responsibilities, and criteria for the composition of the AC. This includes a provision that a former key audit partner of the Group must observe a cooling-off period of at least three (3) years before being eligible for appointment to the AC. Currently, none of the AC members is a former key audit partner involved in auditing the Group. The Board is responsible for presenting a clear, balanced, and understandable assessment of the Group’s performance and position through the annual audited financial statements and interim financial statements presented quarterly to the shareholders. The AC is entrusted to assist the Board by reviewing the Group’s financial reporting process, ensuring the accuracy of its financial results, and scrutinising disclosed information for accuracy, adequacy, completeness, and compliance with accounting standards. The Board places significant emphasis on the objectivity and independence of the external auditors. Through the AC, the Board maintains a transparent relationship with the external auditors, seeking professional advice on the internal controls and ensuring compliance with applicable accounting standards. The AC is empowered to communicate directly with the external auditors to address any concerns at any time. The external auditors would meet with the AC at least twice (2) a year without the presence of Executive Board members and Management to discuss matters related to the Group and its audit activities. During these meetings, the external auditors highlight and discuss the nature and scope of the audit, audit programmes, internal controls, and any other issues requiring the attention of the AC or the Board. The AC members are financially literate and possess a strong understanding of the Company’s business and matters under the purview of the AC, including the financial reporting process. The AC members undertake continuous professional development to stay updated on relevant developments in accounting and auditing standards, practices, and rules as needed. The AC ensures the external audit function remains independent of the activities it audits. It reviews contracts for the provision of non-audit services by the external auditors to prevent conflicts of interests. The excluded services include management consulting, internal audit, and standard operating policies and procedures documentation. For FY2025, the fees paid to the external auditors, TGS TW PLT and its affiliated firms, are disclosed in the Additional Compliance Information section of this IAR2025. The external auditors have confirmed to the AC that they have maintained independence throughout the audit engagement, in accordance with the independence criteria set by the Malaysian Institute of Accountants. 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 during the annual audit for FY2025. Accordingly, the Board has recommended the re-appointment of the External Auditors for the approval of shareholders at the forthcoming AGM. Further details on the roles and responsibilities of the AC can be found in the AC Report included in this IAR2025. CORPORATE GOVERNANCE STATEMENT (cont’d) 178
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