Panjawattana Plastic Public Company Limited

Panjawattana Plastic Public Company Limited Annual Report 2012Internal ControlThe Company is fully aware of the importance of appropriate internal control managementsystem to ensure its efficient business operations. The Audit Committee is tasked to assess andensure that the Company’s internal control and internal audit systems are efficient and appropriate,as well as ascertain that its operations comply with the securities and exchange law, the stockexchange requirements, and other relevant laws.The Audit Committee will have meeting at least every quarter to consider the financialstatements and ensure the accuracy of financial reports and the adequacy of disclosure thereof;consider connected transactions or transactions that may involve conflicts of interest so theycomply with the laws and regulations stipulated by the stock exchange and the Capital MarketSupervisory Board; and verify the appropriateness and efficiency of the internal control and internalaudit systems in place.The Audit Committee at its 1/2013 meeting on 20 February 2013 with the attendance of thethree members assessed the internal control system in five perspectives below:1) Organization control and environment measure2) Risk management measure3) Management control activities4) Information and communication measure5) MonitoringThe Audit Committee has opined that the Company has adequate and appropriate internalcontrol system, as well as the monitoring system, that can protect its assets from unlawful orunauthorized use by its executives, and the internal control procedure on the conduct oftransactions with major shareholders, directors, executives, and their related persons.Nevertheless, the Board of Directors realizes that any internal audit control system cannotguarantee the occurrence of influence whole mistake but it can protect and make a confidence inreasonable level.67