9. Internal Control

The Board of Directors and management has continued to stress the
important of internal control, by emphasizing on the adequate internal
control system for business operation to maximize management as well as
assets monitoring, reduction in possible errors, the Company’s damage
prevention, financial management, risk management, operation
supervision, which reasonably ensure that the Company can operate as
expected and maximized the added value in long run. In addition, The
Board of Directors has made certain that all operations are within the
rules and regulations stipulated by the laws to prevent any possible
damage to the Company.

In the meeting of Audit Committee 4/2009 on August 10, 2009 their have
been an appraisal of the Company internal control sufficiency by
answering the questionnaires as in the documents attached. All the three
members of Audit Committee joined in the meeting and briefly voiced the
opinion about sufficient internal control, which can be segmented into 5
parts as follow:

Part 1 Organization and Its Environment The Company determines business
goals which are accurate, clear, possible and measurable. Moreover, the
Company’s structure supports the goals. There are regulations and
penalties to prohibit executives and employees from possible conflict of
interest. The Company, however, is in the stage of establishing policies
and regulations about financial, purchasing and administrative
transactions. All policies are based on fair business with partners for
long-term benefit.

Part 2 Risk Management The Company always went through the risk
assessment, both internal and external business risks. The working group
consisting of the Managing Director and assistant managing director
Deputy Managing Director Managing Director related to the risk in each
line of duty, and each division and department managers will analyze
risk factors, as well as the control and follow-up action for risk
administrative plans.

Part 3 Controlling Executive Performance The administrative
responsibilities include authorization, accounting and information
booking and asset keeping. To authorize any transaction, 2 Directors
have to co-sign documents.

Transaction authorization between the Company and major Shareholders,
Director, executives, and related persons are regarded for these
advantages, as with any external transactions with others.

Part 4 Information and Communications System The Company provides enough
information for Directors’ decisions. However, the Company is,
sometimes, able to submit a financial statement with the meeting letter
7 days before the meeting, but it can be proposed just a day before, or
at the meeting room.

Accounting documents are filed systematically in accordance with the
accounting system for the purposes of business policy.

Part 5 Pursuit System The Company uses a follow up system comparing each
quarter’s goal, which is examined by the internal audit, by reporting
the performance directly to the Audit Committee. When significant errors
are encountered, the Internal Audit must immediately inform the
Committee concerned, as well as the updated error correction report.

Moreover, the audit Committee has found that there were not any
significant weakness, from effectiveness assessment, in the accounting
control system.