CORPORATE GOVERNANCE OVERVIEW STATEMENT Assessment of Suitability and Independence of External Auditors The Company has established a transparent arrangement with the External Auditors to meet their professional requirements. From time to time, the External Auditors highlight to the AC and Board of Directors on matters that require the Board’s attention. The AC is responsible for reviewing the audit, recurring audit-related and non-audit services provided by the External Auditors. The AC has been explicitly accorded the power to communicate directly with both the External Auditors and Internal Auditors. The terms of engagement for services provided by the External Auditors are reviewed by the AC prior to submission to the Board for approval. The effectiveness and performance of the External Auditors are reviewed annually by the AC. In assessing or determining the suitability and independence of the External Auditors, the AC has taken into consideration of the following: i) t he adequacy of the experience and resources of the External Auditors; ii) the External Auditor’s ability to meet deadlines in providing services and responding to issues in a timely manner as contemplated in the external audit plan; iii) t he nature of the non-audit services provided by the External Auditors and fees paid for such services relative to the audit fee; and iv) w hether there are safeguards in place to ensure that there is no threat to the objectivity and independence of the audit arising from the provision of non-audit services or tenure of the External Auditors. The appointment or re-appointment of the External Auditors is subject to shareholders’ approval by way of an ordinary resolution at the Annual General Meeting (“AGM”), based on the recommendation of the Board. The External Auditors are invited to attend the AGM to respond to shareholders’ questions and enquiries relating to the conduct of the statutory audit and the preparation and contents of the audited financial statements. Where necessary, the Audit Committee (“AC”) meets with the External Auditors without the presence of the Executive Directors and members of Management to provide an opportunity for open and candid discussion and to ensure that the independence and objectivity of the External Auditors are not compromised. Matters of concern raised by the AC during such meetings are duly recorded by the Company Secretaries. In presenting the Audit Planning Memorandum to the AC, the External Auditors highlighted their internal policies and procedures relating to audit independence and objectivity, including the safeguards and procedures implemented and the independence policies adopted by the External Auditors. The External Auditors also provided the required independence declaration to the AC and the Board for the financial year ended 30 June 2026. The AC is satisfied with the competence, independence and objectivity of the External Auditors for the financial year under review. Having considered the above, the Board approved the AC’s recommendation to seek shareholders’ approval at the forthcoming AGM for the re-appointment of Messrs. UHY Malaysia PLT as the External Auditors of the Company for the financial year ending 30 June 2027. PART II - RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK 9. RISK MANAGEMENT COMMITTEE (“RMC”) The RMC was established in April 2019 and as at the date of this Statement, the present members of the RMC are as follows: Chairman YDM Dato’ Syed Haizam Hishamuddin Putra Jamalullail (Appointed on 10 February 2026) (Independent & Non-Executive Director) Members Dato’ Sri Dr. Shahril Bin Mokhtar (Appointed on 17 August 2026) (Group Managing Director) Ms. Chua Pooi Ngee (Appointed on 27 October 2026) (Independent & Non-Executive Director) GOVERNANCE DESTINI BERHAD 96 ANNUAL REPORT 2026
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