Strengthen Effective Risk Management and Internal Control

Strengthen Effective Risk Management and Internal Control

Risk Management
    The Company realizes the importance of risk management, which is a key mechanism and tool for
management helping the Company reach its 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 continues to develop its risk management system. In light of
this, the Company appoints 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
and 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 its internal control system complies with related laws and regulation and
improves such system to meet the standard set by the Stock Exchange of Thailand and 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. In addition, the duties of
employees in the operation, inspection and evaluation sectors are clearly separated in order that an
appropriate balance of work is created. Moreover, the Company also arranges the financial report system
for the responsible departments. Note that the members of Board of Directors express their opinions
concerning the sufficiency of the internal control system in the Company’s financial report under the “Internal
Control” section.

    To ensure the efficiency in production of important documents and the internal control and to ensure that
the internal control is improved regularly, the Company 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. In addition, 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 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 outcome as well as
suggestions to the related the management and Audit Committee in a prompt manner and a regular basis.