A risk assessment update was conducted by the Management together with the ERM Working Group to identify the strategic, financial, operational, information technology and regulatory/ compliance risks that are likely to pose a barrier to the achievement of the Company’s strategic business objectives, and provide counter-measures for the risks identified. The Board and the Management have also reviewed the adequacy, effectiveness and integrity of the Group’s risk management including financial, operational, compliance, information technology and sanctionsrelated controls. The Board has also received the assurance referred to in Provision 9.2 (Assurance) below. The Group internal auditors, PwC, evaluated the related internal controls as part of the internal audit plan approved by the ARC. Any material non-compliance or weakness, including recommendations for improvements, is reported to the ARC. The ARC also reviews the effectiveness of actions taken by the Management on the recommendations made by the internal auditors in this respect. In addition to the work performed by the internal auditors, the external auditors, Deloitte & Touche LLP (Partner-in-charge: Chua How Kiat, date of appointment: 10 August 2021), also perform tests of certain controls relevant to the preparation of the Group’s financial statements. The external auditors report any significant deficiencies of such internal controls to the ARC. Based on the ERM framework and internal controls established and maintained by the Group, the work performed by the internal and external auditors, and reviews performed by the Management and the ARC, the Board, with the concurrence of the ARC, is of the opinion that the risk management and internal control systems in place as at 31 December 2025 are adequate and effective to address in all material respects the financial, operational, compliance, information technology and sanctions-related controls within the current scope of the Group’s business operations. The Board notes that no system of internal controls can provide absolute assurance against the occurrence of material errors, poor judgment in decision-making, human error, fraud or other irregularities. The Board will continue its risk assessment process, which is an on-going process, with a view to improving the Group’s internal controls system. Provision 9.1 (Risk Committee) The Board and the ARC determine the nature and extent of the significant risks which the Company is willing to take in achieving its strategic objectives and value creation. They are responsible for the governance of risk management matters including (a) monitoring the Company’s risk of becoming subject to, or violating, any sanctionsrelated law or regulation; and (b) ensuring timely and accurate disclosures to SGX-ST and other relevant authorities. Provision 9.2 (Assurance) The Board requires and has received assurance from: (a) the Executive Chairman and CEO and the Chief Financial Officer that the financial records have been properly maintained and the financial statements give a true and fair view of the Company’s operations and finances; and (b) the Executive Chairman and CEO and other key management personnel who are responsible, regarding the adequacy and effectiveness of the Company’s risk management and internal control systems (including financial, operational, compliance, information technology and sanctions-related controls). Audit Committee Principle 10: The Board has an Audit Committee which discharges its duties objectively. The ARC will commission and review the findings of internal investigations into matters where there is any suspected fraud or irregularity, or failure of internal controls or infringement of any Singapore law, rule or regulation which has or is likely to have a material impact on the Group’s operating results and/or financial position. The ARC has full authority to investigate any matter within its terms of reference, full access to and cooperation from the Management, and full discretion to invite any director, key management personnel or other employee of the Group to attend its meetings and is given reasonable resources to enable it to discharge its functions properly and effectively. During the year, the ARC reviewed the financial statements of the Group before the announcement of the Group’s half-year and full-year results and the business updates of the Group before the first and third quarter’s announcements. In the process, the ARC reviewed the key areas of Management’s estimates and judgement applied for key financial issues including revenue recognition, impairment testing, provisioning policies, critical accounting policies and any other significant matters that might affect the integrity of the financial statements. The ARC also considered the report from the external auditors, including their findings on the significant risks and audit focus areas. Significant matters that were discussed with Management and the external auditors have been included as Key Audit Matters (“KAMs”) in the audit report for the financial year ended 31 December 2025. Please refer to pages 48 to 50 of the Annual Report. In assessing each KAM, the ARC took into consideration the approach and methodology applied in the valuation of assets, as well as the reasonableness of the estimates and key assumptions used. In addition to the views from the external auditors, subject matter experts, such 35 GEO ENERGY | ANNUAL REPORT 2025
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