9. Internal Control System

The Board of Directors remains committed to effectiveness of the
internal control and audit systems of the Company. To strengthen the
commitment, the Audit Committee has been established to supervise the
financial reporting process of the Company and its subsidiaries in
accordance with generally accepted and consistently applied accounting
standards and in line with the rules and regulations of the Stock
Exchange of Thailand as well as legislation concerned. Its
responsibilities also involve reviewing the company performance in
compliance with corporate governance principles, evaluating the risk
management, maintaining suitable, effective, and well-recognized
internal control and audit systems, selecting and nominating external
auditors, and any other tasks as designated by the Board of Directors.
Besides, the Audit Committee is entrusted to modify the control measures
in response to changing circumstances, environment, and business risks.

In support of the performance of the Audit Committee, a leading
international audit firm has been appointed to independently perform the
internal audit services for the Company and its subsidiaries. This
auditing agency has the duty to summarize and report all associated
findings on a quarterly basis directly to the Audit Committee, who will
further deliberate the report and express opinions to the Board of
Directors. Significant aspects comprehended in the internal audits
entailed improvements in efficiency and controls in the areas of
procurement and payables process, sales, marketing and distribution,
human resource management, inventory management, accounts and finance
and SAP post implementation, etc.

However, in the second half of the year 2009-2010, the Company
established its own Internal Audit Office, which is also under the
supervision of the Audit Committee, to do some parallel work, and
prepare for carrying out the internal audit of the Company and its
subsidiaries.

On April 30, 2010, a meeting of the Board of Directors of the Company
No. 43 (1/2010-2011), which was attended by all members of the Audit
Committee, the Board of Directors, after considering of the
recommendation of the Audit Committee, has come up with the opinion for
the internal control system in the year 2009-2010 of the Company in each
area as the followings:

Organization and environment

The Company has an organizational structure and environment that promote
operational efficiency and an adequate control system. In addition,
there is a clear delineation of responsibilities for each department.
This organizational format has also been shown to be suitable to the
business plan, including the recruitment of quality personnel and the
continual development program to respond to changes in business
operations. The Company has established its operating guidelines for
each section so as to ensure efficiency, internal control and ensuring a
similar operating standard for all departments. The Company established
clear business goals for 2009-2010, incorporating different factors such
as economic condition, market condition and competition strategies.

Risk Management

The Risk Management Committee was reconstituted on September 26, 2008.
The objective of the risk management program is to enhance the existing
practices and to further develop including enterprise the risk
management framework. With ERM (Enterprise Risk Management), the
approach to risk management is to manage risk from an enterprise
perspective, integrating concepts of strategic planning, operation
management, and internal control. By identifying and proactively
addressing risks and opportunities, business enterprises protect and
create value for their stakeholders, including owners, employees,
customers, regulators, and society overall.

Operational Control of Management

The Company has established policies and procedures that are appropriate
to the efficient operations of the business. These include the
determination of clear scope, responsibility and authority for each
level of management, and monitoring of the operation of the Company and
its subsidiaries on a regular basis. Appropriate internal controls are
also evident in transactions concerning major shareholders, directors
and management team or related parties.

Information Technology and Communication System

Information that are complete, accurate, relevant and important are
submitted to the Board of Directors to facilitate their decision making
process. Minutes of all Board meetings are taken. Important and
accounting documents are kept according to legal requirements and a
storage system is available for such use. The Company also maintains a
system of communication channels that are updated, on-time and easy to
understand.

Monitoring System

Meetings of the Board of Directors and the Audit Committee are held on a
quarterly basis along with the monthly Management meeting to monitor the
operating performance of the Company and comparison to the plan. Causes
are analyzed and corrections and improvements made on a continuous
basis.