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  [] Thai Stanley Electric Public Company Limited Form 56-1

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1.  2. Risk factors

The Company provides Risk management Committee, to ensure risk
management of the company is adequate and appropriate manage the risks
to an acceptable level and the practices can be continued to the
following. The risk management policies as follows:

Company's focus on controlling the risks involved in all aspects. Cover
the risk factors associated with business goals in finance,
manufacturing and other operations. As well as security control and
supervision of employees maintain the company’s assets and provide
assistance to the society and government and focuses on making control
measures risk by sharing useful information with other businesses.

  Risk Management Committee is responsible for the following.

1. Prepare Rick control Manual control, to guide decisions to the
responsible controller to

ensure in control continuity.

  2. The operation of the risk various measures.

3. Preparing control system data.

  4. Planning and training.
  5. Extension of social activities.
  6. Consider measures to prevent recurrence.

From risk assessment, the company does not affect the risk of a
significant of investors. Only have a risk for general business, that to
reduce risk by using the cost of prevention in requires careful
consideration, the budget will be measures to reduce risk within the
given the period such as ,

1. The risk from economic problems and political that not security.

The company has established Strategies Center to improve performance and
to study reduce production costs and consider the environment and
business situation to maintain company margins , by organizing a meeting
of the Executive Board and to report every week.

2. The risk of exchange rate and foreign currency loan.

The risk of foreign exchange rates from imported raw materials from
abroad and export goods, in normally programs will be conditional trade
is about 1-3 month and mainly in Yen and US Dollar. The company used
contract traded foreign currency in advance. The Executive will consider
the acceptable level of risk by type of trading and still using same
policy that in 50% of the total liabilities in foreign currency net the
contract will be made to the bank. This is only the

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  [] Thai Stanley Electric Public Company Limited Form 56-1

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company's core banking and transaction company will not trade financial
instruments is speculation.

The Company has no credit risk from the risk of concentration of credit
has a significant contract with Equity Derivatives and cash deposits
with financial institutions with trust.

3. The risk of potential price increases of raw materials and shortages
of raw materials.

The company uses a policy of no monopoly on the production or
distribution of any one material only. Due to raw material suppliers,
but much more the material used in this low grade income, the company
can purchase from the manufacturers in security with ability to conduct
business.

The company has a strong financial position that can be used in order to
create bargaining power with suppliers of raw materials

4. The risk of adequate infrastructure.

  Because the operations of heavy machinery, and developing to be a
  Clean Factory, the

necessary to maintain temperature. Moisture for proper To reduce the
impact on product quality and delivery time, so the impact of
electricity failure is a major impact on manufacturing process the
company has requested assistance from the Provincial Electricity
Authority to distribution electricity to supply three companies from the
Electricity Substation The company has invested in electricity
sub-station size 115. KV a station within the company and will create an
additional station in 2010 to balance the load to increase efficiency
and Stability to the electricity distribution to the Company's
production facilities.