Internal Controls

  The Company’s Board of Directors and Executives had a direct
  responsibility in establishing and maintaining Internal Controls as
  well as regularly reviewing their efficiency to maximize benfits for
  all shareholders based on stakeholders’ fairness. Internal Controls
  cover the Company’s finance and operations to ensure that they comply
  with the laws and related regulations.
  To ensure that the Company securely reached its short- and long-term
  goals, the Board of Directors and Executives focused on adequate
  Internal Controls, and ensured that they stayed relevant with the
  business’ competitive nature and changing environment. Steps were also
  taken to ensure that the Company’s properties and important
  information were safe from being misused or exploited. At the Board’s
  Meeting No. 3/2013 on February 28, 2012, attended by all members of
  the Audit Committee and independent directors, the Board evaluated the
  adequacy of the Company’s Internal Controls previously established by
  the Executives and reviewed by members of the Audit Committee. There
  was a total of 5 main areas which were reviewed, which are summarized
  below:

1) Organizational Control Environment Measures
The Company’s Organizational Control Environment Measures made it
possible for the Executives to operate efficiently with clear and
concise objectives that could be monitored and evaluated regularly. As a
result, the Company performed its businesses based transparency and
fairness for the sake of its customers and all parties involved.
2) Risk Management
In 2012, to ensure continuity of the Company’s Risk Management, the
Company appointed the Risk Management Subcommittee and Office of Risk
Management to create awareness of risks and improve risk management. The
Company hired Sharpener Accounting & Tax Co., Ltd. to hold workshops
within the organization to further build security and sustainability by
involving Executives of all levels. The Risk Management Subcommittee in
conjunction with the Executives determined and prioritized risks as well
as implemented risk management planning, designating ownership and key
personnel accordingly.
3) Management Control Activities
The Company assigned clear duties, responsibilities and authority to
approve budget for each level of Managment in writing. The Management
functioned based on transparency and fairness. In case of a transaction
with a major shareholder, the Board of Directors, Executives or any
parties related to that person, the Company strictly acted according to
the ethics guide and rules involving connected transactions. The Company
indicated that its employees must follow the Company’s rules and
regulations as well as related laws, business ethics and good governance
as outlined by the Stock Exchange of Thailand and Securities and
Exchange Commission Thailand.

The Audit Committee reviewed connected transactions with management and
auditors based on transparency of the market’s anticipated benefits and
conflicts of interest of those involved before submitting them to the
Board of Directors for approval.
4) Information and Communication Measures
The Company provided adequate information for the Board to consider when
the next meeting shall be.
5) Monitoring
The Company outlined clear business objectives in writing and
implemented a systematic follow-up method as well as corrective meaures
should the outcomes differ from the aforementioned objectives.
The Board agreed that the Company had adequate Internal Controls and
properties exploit prevention for management was in place. As for any
transactions with a major shareholder, the Board of Directors,
Executives or any parties related to that person, further details and
Internal Controls evaluation are hereby attached.
Public accountants
The Board reviewed the hiring of external auditors based on their
independence, ability to deliver work in a timely manner as well as
in-depth knowledge of the Company’s businesses. After proposing the
chosen candicate to the Board at a shareholders’ meeting, the Audit
Committee appointed Ernst & Young Corporate Services Co., Ltd. as
external auditors for financial year 2012. According to observations
made by these public accountants, no issues were found regarding the
Company’s Internal Controls.
Internal Audit
The Company set up an independent Office of Internal Audit who reports
directly to the Audit Committee on any activities to ensure that their
objectives and the overall organization's goals were reached. Past
investigations revealed no issues or concerns regarding the Company’s
Internal Controls.