STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL SEGMENT KEY INTERNAL CONTROL ELEMENTS Executive Committee The establishment of Executive Committee (“EXCO”) in Quarter 4 of FY24 serves to facilitate efficient and operational decision-making as well as an approval committee while maintaining appropriate levels of board oversight. The EXCO meets on weekly basis to enable DNeX Group top management to provide a faster turnaround time in providing the guidance and facilitating the business units in expediating the business activities to meet planned targets within the financial year. EXCO plays a crucial role in the effective functioning of DNeX Group in achieving several objectives among others, providing direction and guidance to DNeX Group business operations as well as its support services, overseeing the Group’s strategic direction ensuring the management of resources and budget allocation are in line with the strategic goals and proactively identifying and monitoring key risks that may affect the achievement of operational objectives and long-term strategic success. Competency and Talent Management The Management appoints employees with the necessary competencies to ensure that the personnel driving key operations are sufficiently skilled and exercise the required qualities of professional integrity in their conduct. Training and development programmes are identified to ensure that employees are kept abreast of the constantly changing environment and knowledge in order to be competent in line with achieving DNeX Group’s business objectives. Continuous efforts are also in place to identify and grow the talent beyond the succession pool to ensure that new hires have the right skill sets for the appropriate positions in DNeX Group. Performance monitoring is also established which serves as a tool to monitor performance against the set Key Performance Indicators (“KPIs”), covering key financial, customers, internal business process and learning and growth indicators. Delegation of Authority DNeX Group defines clear lines of role, responsibility and authority to facilitate swift response in the evolving business environment. Thus, the Board’s approving authority on certain activities are delegated to the Management through clearly and formally defined Authority Limits (“AL”). The AL provides the primary governance framework for DNeX Group as the Board formally delegates specific oversight and supervisory functions and controls to the Management to more efficiently manage the business decision making process within DNeX Group. It defines a sound framework of authority, accountability and segregation of duties to facilitate effective decision making at the appropriate level. Nonetheless, key matters are still reserved for the Board’s consideration and decision making. The AL is subject to reviews and enhancements to reflect continuous improvements in tandem with emerging risks and operational issues. During the period, the Board has approved the revision to DNeX Group AL, initially put in place in December 2019 with latest previous revision from 28 August 2025, taking into consideration the change in corporate structure as well as to further empower DNeX Management team in order to increase efficiency and responsiveness in decision making processes. Internal Control System Policies and Procedures Elements of internal control have been embedded and documented in the form of policies and procedures. A set of Group level policies and procedures complete with clear responsibility and accountability are maintained and accessible to employees via an internal portal. To strengthen consistent revision and adoption of Group’s policies and procedures, the Risk and Sustainability Management Department has an oversight in the customisation and adoption of internal control policies across DNeX Group. The approved policies and procedures will be reviewed and updated on a regular basis to ensure continuous improvements in operational efficiency while taking into consideration the changing operational profile, risks and internal control measures. 115 OPERATIONAL REVIEW SUSTAINABILITY STATEMENT GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION INTELLIGENCE POWERING
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