AUDIT COMMITTEE REPORT (cont’d) SUMMARY OF ACTIVITIES UNDERTAKEN BY THE AC (CONT’D) Internal Audit The AC maintained rigorous oversight of the Group’s Internal Audit (“IA”) function throughout FY2025, ensuring its effectiveness as a core component of the governance framework. The AC systematically reviewed all IA reports, focusing on identified control weaknesses and the corresponding corrective action plans developed by Management. Through this process, the AC verified that all recommendations were appropriately prioritised and assigned realistic implementation timelines, while monitoring progress through regular follow-up reviews to ensure timely resolution of control deficiencies. In its oversight role, the AC conducted a comprehensive evaluation of the annual internal audit plan prepared by the outsourced IA firm. The AC assessed whether the proposed audit universe adequately covered all material business units, functions, and risk areas, with special emphasis on high-risk operations and key control processes. The AC ensured the plan incorporated a risk-based methodology aligned with the Group’s enterprise risk management framework, while maintaining sufficient flexibility to address emerging risks. This thorough review process guaranteed that audit resources were optimally allocated to areas of greatest significance to the Group’s control environment. The AC performed an annual assessment of the effectiveness and independence of the outsourced IA function. This evaluation considered multiple dimensions including: • The adequacy of staffing levels and technical competencies • Adherence to the International Standards for the Professional Practice of Internal Auditing • The quality and depth of audit work performed • The function’s organisational independence and direct reporting lines to the AC • The implementation status of prior audit recommendations Through this active engagement with both IA and senior management, the AC ensured the IA function maintained its objectivity while providing valuable assurance over the Group’s effectiveness of risk management and internal control systems. The AC oversight contributed significantly to the continuous enhancement of the Group’s control environment and governance practices. Related Party Transactions The AC reviewed related party transactions entered into by the Group on a quarterly basis to ensure they were conducted at arm’s length and on normal commercial terms, safeguarding the interests of minority shareholders. Through rigorous examination and clarification, the AC ensured that these transactions complied with regulatory requirements and corporate governance standards. This oversight is vital in mitigating potential conflicts of interest and ensuring transparency and fairness in the Group’s dealings with related parties. Conflict of Interest In alignment with the MMLR, the AC has assumed an expanded governance role in the systematic identification, review, and mitigation of conflicts of interest involving Key Persons within the Group. This enhanced mandate encompasses all Directors, key Senior Management, and legal representatives, ensuring comprehensive oversight of potential conflicts across the organisation. To strengthen the Group’s governance framework, the AC undertook the following measures: • Developed and implemented an enhanced Conflict of Interest Policy • Established quarterly disclosure and review procedures for all Key Persons • Monitored and evaluated all disclosed conflicts of interest to ensure they do not impair the Group’s interest • Implemented appropriate mitigation measures • Reported material findings to the Board This structured approach ensures full compliance with regulatory requirements while upholding the Group’s governance integrity. 184
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