External Audit Ernst & Young LLP (“EY”) has been the external auditors of ESR-REIT since 25 April 2017. The ARCC reviewed and approved the audit plan and scope with the external auditors and critically reviewed the report on the audit of the financial statements. Throughout the year in review, the ARCC, together with the Management, reviewed the quality of work done, the performance as well as the independence of the external auditors. The aggregate amount of fees paid or payable to the external auditors for FY2025 was S$957,000, of which audit and non-audit fees amounted to S$707,000 and S$250,000 respectively. The ARCC has undertaken a review of all non-audit services provided by the external auditors and is satisfied that the independence and objectivity of the external auditors have not been impaired by the provision of those services. In reviewing the nomination of EY for re-appointment as external auditor of ESR-REIT and its subsidiaries until the conclusion of the next AGM, the ARCC had conducted the evaluation of EY via both a checklist, which had taken into consideration the Accounting and Corporate Regulatory Authority’s Audit Quality Indicators Disclosure Framework, as well as a face-to-face evaluation session. The ARCC had also considered the adequacy and experience of the engagement partner and key team members assigned, EY’s experience in the REIT sector and the size and complexity of the audit in the evaluation process. Based on the evaluation results, the ARCC is satisfied with the independence and performance of EY and has recommended to the Board the re-appointment of EY as the external auditors of ESR-REIT and its subsidiaries at the forthcoming AGM. The Board has taken into account the ARCC’s recommendation and concurred with the ARCC’s endorsement. Accordingly, the Manager confirms that ESR-REIT complies with Rules 712 and 715 of the Listing Manual with respect to the appointment of external auditors. Internal Audit Given the Manager’s size and scale of operations, the internal audit function has been outsourced to Deloitte Singapore Assurance Pte. Ltd. (“Deloitte”) with effect from FY2026. Deloitte has been engaged pursuant to a three-year internal audit plan covering FY2026 to FY2028, following a structured evaluation and selection process conducted by the ARCC. Deloitte reports directly to the ARCC Chairman and administratively to the Management. The ARCC reviews and recommends to the Board on the appointment, removal and evaluation, as well as the compensation of the internal auditors. The ARCC reviews the internal audit programme and reports on a periodic basis, and monitors Management’s responsiveness to the findings and recommendations of the internal auditors. Deloitte adopts the Standards for the Professional Practice of Internal Auditing set by the Institute of Internal Auditors and has unfettered access to all of ESRREIT’s and the Manager’s documents, records, properties and personnel, including the ARCC. The ARCC will conduct annual evaluations of Deloitte to assess the performance and effectiveness of the internal audit function on an ongoing basis. The ARCC will review the scope of internal audit work and the audit programme, as well as reports submitted by Deloitte, to satisfy itself that the internal audit function remains independent, effective, adequately resourced, and has appropriate standing within the Manager to perform its functions effectively. Whistleblowing Policy The Manager is committed to conduct its business within a framework that fosters the highest ethical and legal standards. The Manager has established a Policy on Whistleblowing, which has been communicated to all employees and details of the policy are available on ESR-REIT’s website. Employees of the Manager and any external parties may raise, in good faith and in confidence, any concerns about possible improprieties in matters of financial reporting or other matters to the ARCC Chairman, without fear of reprisals by submitting a whistleblowing report using the prescribed form found on ESR-REIT’s website at https://www. esr-reit.com.sg/whistleblowing.html. The Manager prohibits discrimination, retaliation or harassment of any kind against a whistleblower who submits a report in good faith. Any party found to have taken reprisal actions or victimised the whistleblower may face disciplinary action, including the possibility of dismissal. The ARCC has the responsibility of overseeing this policy to ensure it is properly administered. Valid reports made in good faith will be investigated by an independent party and the outcome of each investigation is reported to the ARCC Chairman, who will advise on the appropriate followup action. All whistleblowing reports are reviewed by the ARCC quarterly to ensure independent and thorough investigation with appropriate followup actions. All information and reports are received confidentially to protect the identity and the interest of all whistleblowers. 109 ESR-REIT ANNUAL REPORT 2025
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