Audit Committee and Internal Audit Department of Iran Combine Manufacturing Company

Internal auditing is an independent, assurance, objective, and consultative activity designed to add value and improve an organization's operations. By providing a systematic and disciplined approach to evaluating and enhancing the effectiveness of governance, risk management, and control processes, internal auditing assists the organization in achieving its objectives.

■ Key Actions Taken by the Internal Audit Unit

1. Gaining reasonable assurance regarding the effectiveness of the risk management system and performing risk-based audits of high-risk areas. Providing corrective solutions for the continuous improvement of the company's risk management processes, and maintaining ongoing collaboration and interaction with the risk committees of the parent company and group subsidiaries.
2. Outsourcing a portion of internal audit operations based on identified risks. Continuous monitoring of the internal audit status and progress of outsourcing contracts in the parent company and group subsidiaries. Reviewing corrective proposals in audit committees and submitting suggested amendments to the boards of directors of the companies.
3. Conducting briefing and training sessions. Completing and documenting the Securities and Exchange Organization checklist regarding internal controls over financial reporting and following up on it.
4. Follow-up on the issuance of the Board of Directors' report to the General Assembly regarding internal controls over financial reporting. Gaining reasonable assurance regarding the adequacy of the scope of review of internal controls by internal auditors through determining and approving the scope of audits, and following up on it in the audit committees of group companies.
5. Reviewing the accuracy of financial statement preparation to ensure the fair presentation of information and adequate disclosure.
6. Ongoing supervision and follow-up regarding points mentioned in internal and independent audit reports and management letters by committees and the internal audit unit. Proposing corrective suggestions in audit committees.
7. Follow-up on the implementation of control and legal systems to combat money laundering. Oversight of the anti-money laundering unit of the parent company and group subsidiaries. Follow-up on establishing required processes in accordance with relevant laws.

Audit Committee

■ The Audit Committee, in order to fulfill its designated duties, consists of three to five financial specialist members:

1. Alireza Esmailzadeh; Committee Chairman
2. Majid Mohammad Panah; Committee Member
3. Yousef Pashanejad; Committee Member
4. Majid Akhondi; Committee Secretary

■ Key Actions Taken by the Audit Committee

1. Holding joint meetings between the Audit Committee and the Internal Audit Unit.
2. Ongoing supervision by the company's Audit Committee and monitoring the effectiveness and performance evaluation thereof, as well as overseeing the activities of independent auditors and internal auditors.
3. Presenting corrective proposals from the Audit Committee to the Board of Directors by the Committee Chairman, and submitting the committee's performance results and meeting minutes to the Board of Directors.
4. Obtaining an audit report with an unqualified opinion for the company, considering the continuous monitoring of internal controls over financial reporting and regular oversight of the performance of audit and financial reporting committees.
5. Gaining reasonable assurance regarding the adequacy of the scope of internal control reviews by internal auditors through determining and approving the scope of audits and following up on it in the Audit Committee.
6. Oversight of information, conditions, and compliance with requirements related to transactions with related parties.