Group Overview Operation and Financial Review Financials Sustainability and Governance Other Information Indofood Agri Resources Ltd. 44 Corporate Governance Noting that no internal control system or ERM framework could completely guarantee against material judgements or human errors, frauds and other irregularities, the Board was of the view that the Group’s internal control system, including financial, operational, compliance and information technology controls, and ERM framework were adequate and effective in addressing the identified risks. The AC & RMC concurred with the Board’s assessment. In compliance with Rule 720(1) of the SGX-ST Listing Manual, the Company and all its Directors and executive officers have committed to comply with the relevant provisions of the SGX-ST Listing Manual. In 2025, the key audit matters listed below were discussed between the Management and the external auditor, and subsequently reviewed by the AC & RMC. The AC & RMC was satisfied that the key audit matters were appropriately addressed and disclosed in the financial statements. Key Audit Matters Key Considerations and Decisions made by the AC & RMC Impairment assessment of goodwill The AC & RMC considered the methodology applied by (i) the independent valuer engaged by the Management to determine the recoverable amount of the goodwill and the underlying assets associated with Lonsum using the income approach, and (ii) the management’s internal assessment of the recoverable amount of other goodwill from other acquisitions. They also reviewed the appropriateness and reasonableness of the underlying assumptions applied in determining the recoverable amount of the goodwill impairment, as well as the audit findings report presented by the external auditor during the year-end meeting. The AC & RMC concurred with the Management’s assessment of goodwill impairment for the financial year ended 31 December 2025. Recoverability of plasma receivables The AC & RMC reviewed the methodology and key assumptions used by the Management in determining the recoverability of plasma receivables by estimating the allowance for expected credit loss (“ECL”) using the general approach as these receivables contain a significant financing component. They also considered the appropriateness and reasonableness of the underlying assumptions in determining the allowance for ECL, as well as the audit findings report presented by the external auditor during the year-end meeting. The AC & RMC concurred with the Management’s assessment of the recoverability of plasma receivables for the financial year ended 31 December 2025. The key audit matters listed in the external auditor’s report for the financial year ended 31 December 2025, together with a detailed description of the audit procedures adopted, can be found on pages 56 to 60 of this Annual Report. PRINCIPLE 10: Audit Committee Composition of the AC & RMC: The AC & RMC is chaired by Mr David Sungkoro (ID), with Messrs Goh Kian Chee (NED) and Andreas Tan (ID) as members. The AC & RMC possesses sound expertise in financial management and is fully qualified to discharge its powers and duties. None of the AC & RMC members were previous partners, employees or Directors of the Company’s external auditor, Messrs Ernst & Young LLP, within the last 24 months or hold any financial interest in Messrs Ernst & Young LLP. The Board considers Mr David Sungkoro, who has extensive and practical accounting and financial management knowledge and experience, well qualified to chair the AC & RMC. Powers and Duties of the AC & RMC: The key responsibility of the AC & RMC is to support the Board in risk management, internal controls and governance processes as well as to conduct an independent review of the effectiveness of the ERM framework and the adequacy of internal control measures in addressing the financial, operational, compliance and information technology risks. The AC & RMC is empowered to review and investigate any matters under its terms of reference listed below, with full access to the Directors, the Management, employees, internal auditors and the external auditor.
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