open and professional association with External Auditors, and the BAC is entrusted with recommending their appointment or removal, approving their remuneration, and establishing the terms of engagement for Board approval. Responsibilities of the Board and BAC include reviewing, assessing, and monitoring the performance, suitability, and independence of External Auditors. A comprehensive policy outlines guidelines and procedures for the assessment and monitoring processes, covering aspects such as Selection and Appointment, Independence, Conflict of Interest, Non-Audit Services, Rotation of Audit Partner, Annual Reporting, Annual Assessment and Audit Fees. The appointed Audit Partner undergoes rotation at least every five (5) Financial Years, with a mandated two (2) year gap before returning as the Audit Partner for the engagement. While External Auditors may be engaged for non-audit services, their objectivity, judgment and independencemust not be impaired. Written assurance of meeting independence requirements is obligatory for each non-audit service undertaken for the TNB Group. Three (3) fundamental principles govern the prohibition of non-audit services: External Auditors cannot function in a management role, audit their own work, or serve in an advocacy role for TNB Group. Compliance with the By-Laws of the Malaysian Institute of Accountants (MIA) concerning non-audit services is mandatory, with the application of safeguards if necessary. TNB External Auditors Policy stipulates a three (3)-year cooling-off period for a former partner of TNB’s External Auditors before being appointed as a BAC member in accordance with Practice 9.2 of the MCCG. Additionally, in alignment with Guidance 9.3 of the MCCG, the annual assessment of External Auditors incorporates information from the Annual Transparency Report of the audit firm. CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 181 The BAC, in evaluating the External Auditors’ independence, considers non-audit fees provided for services during the Financial Year. The