31

Statement On Internal Control

VITROX CORPORATION BERHAD

[649966-K]

Pursuant to Rule 15.26 (b) of the Listing Requirements of Bursa

Malaysia Securities Berhad for the MESDAQ Market

The Board of Directors of ViTrox Corporation Berhad (“the Company”) has made the following statement on the state of internal

control of the Group which has been prepared in accordance with the “Statement on Internal Control - Guidance for Directors of

Public Listed Companies” issued by the Institute of Internal Auditors Malaysia.

Internal Control Objectives

The Board of Directors recognizes the importance of maintaining a sound system of internal control to achieve the following

objectives:

1.

Safeguard the shareholders’ investments and assets of the Group

2.

Identify and manage risks affecting the business of the Group

3.

Ensure compliance with regulatory requirements

4.

Ensure the effectiveness and efficiency of operations to achieve business objectives of the Group

5.

Ensure the integrity and reliability of financial information

In consultation with the Executive Directors of the Company who are also managing the active subsidiaries, the Board is satisfied

that throughout the year, there is an ongoing process for identifying, evaluating and managing the significant risks affecting the

Group through the system of internal control.

Key Elements of Internal Control System

The important elements of the system of internal control of the Group are as follows:

1.

Organizational structure of each business unit clearly defines operational and financial responsibilities

2.

Key responsibilities are clearly defined and properly segregated

3.

Authority level is properly defined

4.

Key management personnel including Executive Directors meet regularly to address key business risks and operational issues

5.

Operational procedures are governed by standard operating manuals which are reviewed and updated regularly

6.

Effective financial reporting system is in place to ensure timely generation of financial information for management’s review

The Board of Directors is ultimately responsible to ensure that the Group maintains a sound system of internal control. However,

the Board wishes to draw attention that the system of internal control is designed to manage rather than eliminate the risk of failure

to achieve business objectives and can only provide reasonable but not absolute assurance against material misstatements or

losses.