10. Internal Control

In the minute of the Company’s Board of Directors of 2/2005, held on
Febuary 25, 2005 which involved Board of Director together with Audit
committee. Audit committee evaluated internal control system according
to reports and gave Management to explain about all 5 operating systems
which are the Company and its circumstance, Risk management, Operation
control of management, Information technology system, and Monitoring.
Audit committee concluded that the existence of internal control system
is sufficiency as following.

The Company and its circumstance

With the Company Structure in writing format, there are specific
responsibility of each department. The Company set the goal to each
departments for future operation, in which all personnel are involved in
driving to reach that goals. The Company concentrates in the ethics of
working such as honesty, loyalty, truthfulness. The Company also writes
the rules and punishments for any behavior which cause to the Company’s
damages.

Risk management

Management gives more attention in risk management because the nature of
the Company business is related directly to its risk. Management also
gives more caring and circumspection in financial management, credit
approval process by evaluating potential risk and setting preventive
measure and risk management. There are preventive measure and evaluation
of risk from information technology which is the heart of operation
performance. In addition management also evaluates continuously outside
factors which can cause risk to the Company’s operating.

Operation Control of Management 

The Company’s organization are written to clarify specific
responsibilities of each departments. To ensure accuracy and compliance
with law and the Company’s regulation, internal control system is
introduced to verify and control the operation of each department.

Information Technology System 

The Company always gives support to information technology system and
communication system for speed, accuracy, and prompt in gathering and
compiling. Setting the format of operation helps personnel receive
clearly information. And this system also supports decision process of
management correctly and promptly both solving problem and future plan
especially accounting and financial information.

Monitoring

Internal control process is introduced to follow the Company’s operation
continuously to ensure the succeed of the goals. By the way there is the
meeting of management once a month and for emergency the meeting will be
arranged to solve the problem which affect to normal operation.

Furthermore the Company also hire outsource-Tax Specialist Company
Limited, to consult about internal control system. This consultant works
independence which supports and suggests us both risk management and
internal control system. The objectives of hiring outsource are

1)  To increase the efficiency of company operation and report the
    result to Audit committee and Management.

2)  To ensure that the Company’s assets are used efficiency

3)  To inform Audit committee and management about the potential
    problems and can solve that problems promptly.

4)  To ensure the existence of appropriate system and personnel always
    follow to the existed system.