84 CapitaLand Ascott Trust Internal Audit (IA) The Managers have an internal audit function supported by CLI’s Internal Audit Department (CLI IA). The head of the CLI IA is Dr Jenny Tan. CLI IA is independent of the activities it audits and has unfettered access to CLAS’ documents, records, properties and employees, including access to the ARC, and has appropriate standing with respect to the Managers. CLI IA’s primary reporting line for the Stapled Group is the ARC8. The ARC monitors and assesses the role and effectiveness of the IA function through the review of IA’s processes from time to time. The ARC also reviews to ensure that the IA function is adequately resourced and skilled in line with the nature, size and complexity of the Managers and CLAS’ business. In FY 2025, the ARC reviewed the IA function and was satisfied that the IA function is adequately resourced, effective and independent. In addition, CLI IA has passed the quality assurance review conducted by an external independent auditor. CLI IA formulates its internal audit plan in consultation with, but independently of, Management. Its plan is submitted to the ARC for approval prior to the beginning of each year. CLI IA also reviews compliance with the CLI Group’s and CLAS’ policies, procedures and regulatory responsibilities, performed in the context of financial and operational, and information system reviews. CLI IA is guided by the International Standards for the Professional Practice of Internal Auditing (Standards) developed by the Institute of Internal Auditors Inc. (IIA), Singapore, and has incorporated these Standards into its audit practices. During FY 2025, the ARC reviewed the results of audits performed by CLI IA based on the approved audit plan. All significant findings are reported to Management and the ARC. CLI IA also reviews the status of implementation of the audit recommendations, and reports the same to Management and the ARC. The ARC reviewed reports on whistle-blower complaints reviewed by CLI IA to ensure independent and thorough investigation and adequate follow up. The ARC also received reports on Interested Person Transactions reviewed by CLI IA that they were on normal commercial terms and are not prejudicial to the interests of CLAS and its minority Stapled Securityholders. This is pursuant to procedures established by the Managers to comply with the Listing Manual requirements relating to interested person transactions. All interested person transactions are reported to and monitored by the Finance department which also keeps tab on the aggregate value, prior to the review by CLI IA. Legal advice is sought, if required, in respect of any issues relating to any specific interested person transaction. In the year under review, save for the divestment of Citadines Central Shinjuku Tokyo, there were no significant interested person transactions involving controlling Stapled Securityholders, controlling shareholders of each of the Managers or Directors requiring approval of the Stapled Securityholders. CLI IA employs suitably qualified professional staff with the requisite skill sets and experience, including IT auditors with the relevant professional IT certifications who are also members of the ISACA Singapore Chapter, a professional body administering information systems audit and information security certifications that is headquartered in the USA. CLI IA provides training and development opportunities for its staff to ensure their technical knowledge and skill sets remain current and relevant. Stapled Securityholder Rights and Engagement Principles 11, 12 and 13: Shareholder Rights and Conduct of General Meetings, Engagement with Shareholders, Managing Stakeholder Relationships The Managers are committed to treating all Stapled Securityholders fairly and equitably. All Stapled Securityholders enjoy specific rights under the Trust Deeds and the relevant laws and regulations. General Meetings In FY 2025, CLAS convened and held an annual general meeting on 17 April 2025 and an extraordinary general meeting on 26 September 2025 (collectively, the 2025 General Meetings), which were both held physically. This provided Stapled Securityholders with the opportunity Corporate Governance 8 While CLI IA’s primary reporting line is to the ARC for the Stapled Group, the ARC does not determine the appointment, termination, or remuneration of the head of CLI IA, as such decisions are made at the CLI Group level. Despite this deviation from Provision 10.4, CLI IA is able to fulfil its role effectively, aligning with the intent of Principle 10 of the Code.
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