GIA adopts a risk-based methodology in planning and conducting audits by focusing on key risks areas and activities that are aligned with the Group’s strategic plans. GIA has also adopted internal audit standards and best practices based on the International Professional Practices Framework (IPPF) promulgated by The Institute of Internal Auditors. The terms of reference of the GIA are clearly spelt out in the Internal Audit Charter. GIA has operated and performed in accordance with the principles of the Charter that provides for its independence. GIA reports directly to the AC and is independent of the activities it audits. GIA has an adequately resourced internal audit function to assist the AC and the Board in maintaining an effective system of internal controls and overall governance practices within the Group. GIA has in total 17 internal auditors as at 31 December 2023, comprising staff from diverse backgrounds. GIA continues its commitment to equip its internal auditors with the necessary knowledge, skills and competencies to discharge their duties and responsibilities. They had attended relevant trainings and courses and are strongly encouraged to obtain appropriate professional certifications and qualifications. The audits conducted in year 2023 covered a wide range of operational areas within the Group including fresh fruit bunches harvesting, field maintenance, procurement, contract management, marketing, project management, finance, administration, production, inventory management, plant and machinery maintenance and plantation research. The corresponding audit reports were presented to the Management and AC for their attention, deliberation and implementation of corrective actions. Performance of the GIA is assessed annually by the AC. During the financial year, GIA undertook the following activities: • Prepared the annual audit plan for approval by the AC. • Performed risk-based audits based on the annual audit plan, including follow-up of matters from previous internal audit reports. • Conducted root-cause analysis as part of the internal audit work to enable relevant recommendations to address any weaknesses noted. • Issued internal audit reports on risk management, control and governance issues identified from the risk-based audits together with recommendations for improvements for these processes. • Undertook ad-hoc reviews on matters arising from the audits and/or requested by the Management and/or AC and issued the reports accordingly. • Reported on a quarterly basis to the Management and AC on significant risk management, control and governance issues from the internal audit reports issued, the results of special reviews undertaken (if any) and the results of follow-up of matters reported. • Reported on a quarterly basis to the AC the achievement of the audit plan and annually on status of resources of GIA. • Conducted regular follow-ups and monitoring on the implementation of recommendations made to ensure that appropriate corrective actions are taken on a timely basis. • Liaised with the external auditors to maximise the use of resources and for effective coverage of audit risks. • Reviewed the procedures relating to related party transactions entered into by the Group to ensure that the related party transactions have been conducted in accordance with the Group’s normal commercial terms and are not to the detriment of the Group’s minority shareholders. • Conducted workshops and communication sessions with the Management and operational staff on internal controls, internal audit observations and proposed action plans on the areas covered during the audit engagements. All audit work for the internal audit function during the year was conducted in-house. No area of the internal audit function was outsourced. The total cost incurred for GIA in respect of financial year 31 December 2023 amounted to RM0.8 million (2022: RM0.8 million). AC Effectiveness Review and Performance For the year under review, the Board assessed the performance of the AC through an annual evaluation exercise. The Board agreed that the AC continued to support the Board in reviewing financial and audit matters, contributing to the overall effectiveness of the decision-making process by the Board for the Company and the Group. The Board is satisfied that the AC has discharged its functions, duties and responsibilities in accordance with the TOR of the AC. REPORTING TO THE EXCHANGE For the year under review, the AC is of the view that the Company is in compliance with the MMLR and as such, the reporting to Bursa Malaysia Securities Berhad under Paragraph 15.16 of the MMLR is not required. This Report is made in compliance with a resolution of the Board dated 12 July 2024. Integrated Report 2023 127
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