GOVERNANCE 3. INTERNAL AUDIT (i) Discussed with the internal auditors and reviewed the overall adequacy, competency and effectiveness of the system of internal controls; (ii) Reviewed and approved the Internal Audit Plan during the first AC meeting each year to ensure adequacy of resources, competencies and coverage of auditable entities with significant and high risks. Any subsequent changes to the Internal Audit Plan are approved by the AC; (iii) Reviewed and assessed the adequacy of scope, functions and resources of the in-house Group Internal Audit Department and that it has the necessary authority to carry out its work; (iv) Reviewed the major findings of internal audit, areas required improvements, and management’s response, and ensure that appropriate actions are taken on the recommendations of the internal audit function; and (v) Reviewed the budget and resources of the Group Internal Audit Department. 4. M ATTERS RELATING TO RELATED PARTY TRANSACTION AND CONFLICT OF INTEREST (i) Reviewed the quarterly and annual financial statements on disclosures relating to related party transactions and conflict of interest that arose within the Group, if any. TERMS OF REFERENCE The Terms of Reference of the AC which laid down its duties and responsibilities are accessible via the Company's website at www.destinigroup.com. INTERNAL AUDIT FUNCTION The Group has established its in-house Internal Audit Department since 2004, which reports to the AC and assists the AC in reviewing the effectiveness of the internal control and risk management systems within the Group whilst ensuring that there is an appropriate balance of controls and risks throughout the Group in achieving its business objectives. With the internal audit function being put in place, remedial action can be taken in relation to weaknesses identified and noted in the systems and controls of the respective operating units. The setting up of the internal audit function is geared towards increasing efficiency and better management of resources in all aspects of the Group's operations. The scope of internal audit covers the audit of all units and operations, including subsidiaries as set out in the Internal Audit Charter approved by the AC. The Internal Audit Department of the Group has a total of four (4) professional staff and it is led by Encik Khairul Rizal Bin Osman as the Head of Internal Audit. Encik Khairul Rizal holds a Bachelor’s Degree in Business Administration from Universiti Teknologi MARA and a Diploma in Banking Studies from the same university. He is a Certified in Internal Auditing for Financial Institutions (“CIAFIN”), has an Associate Qualification in Islamic Finance (“AQIF”) and a Lead Auditor Integrated Management System (“IMS”) ISO9001, ISO 14001 & ISO 45001 Exemplar Global Certified. The Internal Audit Department of the Group performs its duties in accordance with standards set by relevant professional bodies, namely the Institute of Internal Auditors. The internal auditors monitor and report on the system of internal control. They work on a plan agreed with the AC and support the AC in discharging its duties and responsibilities, giving assurance that adequate, efficient and effective internal control systems are in place. DESTINI BERHAD 107 ANNUAL REPORT 2026
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