9. Internal Control

The Board of Directors and management has continued to stress the
importance 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 ensures 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.

The Audit Committee has performed its duties within the framework of
responsibilities assigned by the Company’s Board of Directors, which is
also consistent with the Stock Exchange of Thailand’s stipulation. In
the fiscal year 2012, there were 6 Audit Committee meetings in which
every audit committee attended along with the executives, auditors,
accounting department and internal audit department. The remarks about
the sufficiency of the internal audit system can be summarized as
follows:

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, Deputy Managing Director, and
assistant 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, considering proper credit limit to be approved by
executives in each level 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, in case of the change in
last updated information, the Company may not be 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 weaknesses, from
effectiveness assessment, in the accounting control system.