6. Report of Audit Committee (Continued) Other functions performed by the Audit Committee are described in the report on corporate governance included in the annual report. It also includes an explanation of how the independent auditor’s objectivity and independence is safeguarded where the independent auditor provides non-audit services. The Audit Committee has recommended to the board of directors that the independent auditor, RSM SG Assurance LLP, be nominated for re-appointment as independent auditor at the next annual general meeting of the Company. 7. Independent auditor RSM SG Assurance LLP has expressed willingness to accept re-appointment. 8. Directors’ opinion on the adequacy of internal controls Based on the internal controls established and maintained by the Group, work performed by the internal and external auditors, and reviews performed by management, other committees of the board and the board, with the concurrence of the Audit Committee, is of the opinion that Group’s internal controls (including financial, operational, compliance and information technology controls), and risk management systems were adequate and effective as at 31 December 2025 to address the risks that the Group considers relevant and material to its operations. 9. Subsequent developments There are no significant developments subsequent to the release of the Group’s and the Company’s preliminary financial statements, as announced on 25 February 2026, which would materially affect the Group’s and the Company’s operating and financial performance as of the date of this report. On behalf of the directors Chew Choon Tee Yeo Wee Kiong Managing Director Independent and Non-Executive Chairman 18 March 2026 MEGACHEM LIMITED ANNUAL REPORT 2025 114 STATEMENT BY DIRECTORS
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