GOVERNANCE SUMMARY OF ACTIVITIES UNDERTAKEN BY THE AC (CONT’D) Others The AC reviewed its Terms of Reference to ensure that the Company has implemented most of the good practices recommended in the MCCG. This comprehensive review process aimed to align the AC’s functions and responsibilities with best practices in corporate governance, enhancing transparency, accountability, and effectiveness within the Company’s governance framework. The AC updated its Terms of Reference in FY2025 to incorporate new conflict of interest requirements from Bursa Securities amended MMLR, aligned with MCCG best practices, and strengthened oversight effectiveness. The AC maintained robust whistleblowing mechanisms, though no cases were reported in FY2025. The policy ensures confidential reporting channels, protection against retaliation, and proper investigation protocols. The AC completed the annual evaluation process for AC members through self-assessment and peer evaluation. This structured evaluation framework allows AC members to assess their individual performance and contribution to the AC’s effectiveness. By fostering continuous improvement and accountability, the evaluation process enhances the AC’s governance capabilities and ensures optimal performance of oversight duties. TRAINING AND EDUCATION During the financial year, the AC members attended individually or collectively seminar(s), conference(s) and/ or training(s) to continuously upgrade their skills and to keep abreast of current developments to enhance their knowledge and enable them to discharge their duties more effectively. INTERNAL AUDIT FUNCTION The Internal Audit (“IA”) function is a core component of the Group’s governance framework, providing independent assurance on the effectiveness of risk management, internal controls, and compliance processes. During FY2025, the IA function was outsourced to Vaersa, an independent professional audit firm. To ensure objectivity, the IA function reports directly to the AC. The AC maintained rigorous oversight to safeguard Vaersa’s independence, ensuring they have unrestricted access to the necessary resources and information to discharge their duties effectively. Vaersa executed its responsibilities in accordance with the approved internal audit plan, conducting comprehensive reviews that assessed operational controls, policy compliance, adherence to authority limits, and conformity with applicable laws and regulations. These audits evaluated both the adequacy of existing controls and their effectiveness in mitigating business risks. All audit findings were formally presented to the AC, with Senior Management promptly addressing the recommendations provided. For the financial year under review, the audit process did not identify any significant internal control breakdowns or material weaknesses. This provides reasonable assurance that the Group’s internal control systems remain effective in safeguarding assets and managing organisational risks. The total expenditure for internal audit services during FY2025 amounted to approximately RM30,000, representing the Group’s commitment to maintaining robust governance structures. Further details on the IA function and its contributions to the Group’s risk management framework are available in the Risk Management and Internal Control Statement on page 187 of this IAR2025. Through this systematic approach, the internal audit function continues to support the Group in achieving its strategic objectives while upholding the highest standards of corporate governance. AUDIT COMMITTEE REPORT (cont’d) 185
RkJQdWJsaXNoZXIy NDgzMzc=