STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL 1. Regular Board and management meetings to assess the Group’s performance and controls. 2. Deliberation on operational performance and other related matters by the Management Executive Committee, Management Risk Committee and Management Sustainability Committee. 3. Monthly monitoring of results against budgets, with major variances being followed up and management action taken, where necessary. 4. Regular visits to the operating units by members of Senior Management, Internal Planting Advisory Department, Sustainability and Safety Department, Visiting Engineers, Performance Monitoring Unit, Replanting Unit and Mechanisation Unit, with emphasis on the monitoring and control of expenditure, agronomic practices and ad-hoc investigations. 5. GIA function assists in providing assurance of the effectiveness of the system of internal control. GIA performs regular visits to review the effectiveness of the control procedures and ensure accurate and timely financial management reporting. Internal audit efforts are directed towards areas with significant risks and the risk management process is being audited to provide assurance on the management of risks. 6. Management through various platform reviews the internal audit reports and follow ups on findings highlighted by GIA. The internal audit reports are deliberated by the AC and are subsequently presented to the Board on a quarterly basis or earlier, as appropriate. 7. Re-establishing the Internal Planting Advisory Department as an internal body that specialises in providing expert advice, monitoring, and evaluation concerning good agricultural and management practices as well as operational processes at estates and palm oil mills. Review and Monitoring CONCLUSION The monitoring, review and reporting arrangements provide reasonable assurance that the structure of controls and its operations are appropriate for the Group’s operations and that risks are at an acceptable level throughout the Group’s businesses. Such arrangements, however, do not eliminate the possibility of human error, deliberate circumvention of control procedures by employees and others, or the occurrence of unforeseeable circumstances. The Board believes that the development of the system of internal control is an ongoing process and has taken proactive steps throughout the year to improve its internal control system and will continue to undertake such steps. The Board is of the view that the system of internal control in place for the year under review is sound and sufficient to safeguard shareholders’ investments, stakeholders’ interests and the Group’s assets. REVIEW OF THE STATEMENT BY EXTERNAL AUDITOR The external auditors have performed limited assurance procedures on this Statement on Risk Management and Internal Control. The review was performed in accordance with Malaysian Approved Standard on Assurance Engagements, ISAE 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information and Audit and Assurance Practice Guide 3 (AAPG 3), and the Guidance for Auditors on Engagements to Report on the Statement on Risk Management and Internal Control that are included in the Integrated Report. AAPG 3 does not require the External Auditors to consider whether the Directors’ Statement on Risk Management and Internal Control covers all risks and controls, or to form an opinion on the adequacy and effectiveness of the Groups’ risk management and internal control system including the assessment and opinion by the Board of Directors and management thereon. This statement is made in accordance with a resolution of the Board of Directors dated 30 August 2024. Boustead Plantations Berhad 122
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