2.10 Internal Control

The Board of Executive Directors’ Meeting No. 32/2004 held on 23
November, 2004 had evaluated and agreed that the Company had had
sufficient internal control based on the summary data under 5 main
categories as follows:

1.  Organization and environment

2.  Risk Management

3.  Management task of the Executives

4.  IT System

5.  Follow up System

  In addition, the same opinion had been agreed by the Audit Committee
  during the meeting No. 12/2004 held on 16 December, 2004.

Report of Audit Committee

The Board of United Securities Public Company Limited had appointed an
Audit Committee which consists of 3 members, namely Mr. Wichien
Wattanakun as Chairman of the Committee, Mr. Chongrak Sripunporn and
appointed Mr. Chokechai Tanpoonsinthana as committee member to replace
Mr. Vorapol Socatiyanurak who had resigned from the Committee member
after completion of his office term during the year. Moreover, the Vice
President of Compliance & Internal Audit Department was assigned to take
up the Secretary of the Audit Committee. All members’ qualifications of
the Audit Committee had fully met with the standard qualifications
required by SET.

For the fiscal year 2004, during 1 January 2004 to 31 December 2004, the
Audit Committee had held a total of 12 meetings and the Audit Committee
had carried out its functions in compliance to the standard regulation
of the Audit Committee significantly of which are summarized below:

-   Auditing on the suitability and competency of the company’s internal
    control system which was carried out by the external and internal
    auditors. The Audit Committee had made necessary comments and
    suggestions as appropriate.

-   Auditing on the work of the Compliance & Internal Audit Department
    starting from the auditing plan, methods, results and follow ups
    systems by which the Audit Committee had made appropriate
    suggestions which facilitated the auditing function to its highest
    efficiency.

-   Auditing on the company’s operations to ensure that they all
    complied with the laws of securities business and other related laws
    regulated by the Stock Exchange of Thailand.

-   Auditing and making approval of the company’s financial statements
    before submitting to the Board of Directors for final approval. This
    is done independently by the external and internal auditors of the
    Company so as to be informed of any notices, comments or advices.

-   To propose on the appointment of the company’s external auditor and
    its annual auditing fee.

-   To be responsible for the duties of the Remunerations Committee as
    follows:

1.  To propose the remunerations policy of the Board.

2.  To determine the annual remuneration in all forms of the Company’s
    executives ranging from Managing Director level up to the Chairman
    of the Executive Board.

3.  To determine the budget for annual remunerations and rewards of the
    company’s executives ranging from Executive Vice President level up
    to Senior Executive Vice President which was proposed by the
    President thru the resolution from the Executive Board.

Consequently, the Audit Committee does believe that the company is
currently operating on a good governance practice and under efficient
internal control systems.

(Mr. Wichien Wattanakun)

Chairman of the Audit Committee

United Securities Public Company Limited