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  9. Internal Control

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The Company has taken several measures to ensure its internal control
processes function effectively. This includes a balanced composition of
the board of directors, an audit committee made up of independent
directors and dedicated monitoring and risk management departments which
report directly to director-level committees.

The Company’s three Independent Directors also served as the Audit
Committee, namely Mr. Suraphol Sindhuvanich, Miss Narumol
Wangsatorntanakun and Mr. Chatchawan Triamvicharnkul. They execute their
responsibilities independently with no restrictions in obtaining
information, and receive full cooperation from senior management and
staff. One of the duties of the Audit Committee is to review and audit
the Company’s financial statements in order to maintain transparency and
provide independent oversight.

For monitoring and control, the Company has an Internal Audit Department
and a Compliance Department which report directly to the Audit Committee
and attend monthly Audit Committee meetings. The Company also has a Risk
Management Department which reports directly to the Executive Committee.

Internal Audit Department

The Internal Audit Department audits and evaluates internal operations
of the Company by monitoring compliance with internal policy and
procedure. The department also compares operations with plan to
determine whether the Company’s goals and objectives are being achieved,
and performs other auditing assignments as requested by the Audit
Committee. The Internal Audit Department works closely with operations
staff and reports their observations directly to the Audit Committee.

The Company has also hired an independent internal audit consultant to
help strengthen its internal audit systems, its internal audit policy,
and improve its overall auditing efficiency.

Compliance Department

The Compliance Department monitors, evaluates and controls the Company’s
operation systems to ensure compliance with all relevant laws and
regulations. The department reports evaluation results concerning risk
prevention and control plans for each department directly to the Audit
Committee and the Board of Directors.

Moreover, the Company has systems in place to prevent leakage of
information between different operating units (i.e., Chinese Wall
policy) by segregating the section that holds confidential information
into a separate area, setting up a code name for each client, allocating
and limiting the team for each project to avoid conflicts of interest.
Staff are trained regarding regulations concerning the safeguarding of
confidential information (as disclosed in the section on corporate
governance). The Company also has a secure documentation management
system in place so only internal auditors or authorised juristic persons
can inspect documents when necessary.

Risk Management Department

The Risk Management Department develops and monitors the Company’s risk
management program. This involves coordinating with and advising each
department on risk evaluation and risk management, and also assisting in
the creation of their risk prevention and control plans.

The Audit Committee together with the Internal Audit Committee reviewed,
evaluated and audited the Company’s internal control systems in 2012 -
during the Audit Committee’s meeting of 1/2013 held on 30 January 2013.
The results were reported to the Executive Committee at meeting 2/2013
on 26 February 2013 and the Board of Directors at meeting 1/2013 on 27
February 2013. The evaluation concerned five areas: 1) Organisation
Controls and Environment Measures, 2) Risk Management Measures, 3)
Management Control Activities, 4) Information Technology and
Communication Measures, and 5) Monitoring.

The Audit Committee concluded that the Company has sufficient internal
control systems that are able to support the Company’s operations
according to the principles of Good Corporate Governance. In addition,
the Audit Committee has reviewed and approved the Company’s financial
statements and has reported this issue to the Board of Directors.