Strengthen Effective Risk Management and Internal Control

Risk Management
The Company realizes the importance of risk management, which is a key mechanism and a tool for management helping the Company reach the set goals and targets. The risk management also helps minimize losses while enhancing the Company’s competitiveness. Moreover, the risk management is a key element for good governance. Hence, the Company has continued to develop the risk management system. In light of this, the Company has appointed the Executive Committee to work on the policy level. Meanwhile, the Company also includes the risk management in the job description of all departments so that all employees realize and emphasize the importance of the risk management. All departments hold the responsibility to manage, control, and maintain risks at acceptable levels. Finally, they regularly follow up and evaluate risks to be in line with changes in both internal and external circumstances.

Internal Control and Internal Audit
Realizing the importance of the internal control system, the Company thus focuses greatly on sufficiency and appropriateness of the internal control system covering finance, management and operation. The Company also ensures that the internal control system complies with related laws and regulations, and improves such system to meet the standard set by the Stock Exchange of Thailand, as well as the international standard called Internal Control Framework set by the Committee of Sponsoring organizations of the Treadway Commission or COSO. The Company clearly specifies the duties, responsibilities, and power of the employees both in the operation level and the management level in a written form. Uses of the Company’s assets are controlled to maximize benefits to the Company. Moreover, the duties of employees in the operation, inspection and evaluation sectors are clearly separated in order that an appropriate balance of work is created. In addition, the Company also arranges the financial report system for the responsible departments. The Board of Directors express opinions concerning the sufficiency of the internal control system of the Company and subsidiaries under the “Internal Control” section.

To ensure an efficiency of production of important documents and the internal control and to make sure that the internal control is improved regularly, the Company has set up the internal audit department in 2008. This department is assigned to review the internal operation, as well as assess the effectiveness and the sufficiency of the internal control system of the Company and the subsidiaries. The internal audit department’s main objective is to ensure that core operation and the financial activities of the Company and the subsidiaries are effectively run and meet the management’s objectives. Likewise, the internal audit department also inspects whether all operation of the Company is in accordance with relevant laws and regulations. Hence, in order to enable the members of the internal audit department to perform their duties independently, the Board of Directors requires that the internal audit department report directly to the Audit Committee. The internal audit department is also assigned to carry out inspection duties, in accordance with the Company’s annual business plan approved by the Audit Committee. The department carries out annual internal audit operation, as approved by the Audit Committee, and also reports the outcome along with suggestions to the management department and Audit Committee in a prompt manner and on a regular basis.