Page 47 - Annual Report English 2018

Tycoons Worldwide Group (Thailand) Plc.

10 . Internal control and risk management

10.1 At the company’s Board of Director meeting No.1/2019 on February 25, 2019
which was attended by the three independent directors and the audit committee members, the
board review the opinion of board of the audit committee and evaluated the internal controls
of the company by asking certain information of management. The board reviewed the
company’s internal controls in five key areas:

(1) Organization and environment;
(2) Risk management;
(3) Management control;
(4) Information technology and communication measures;
(5) Follow-up systems.

After such review, the board members were of the opinion that the company had adequate
controls in place. The company has policies in place to regulate business transactions with
major shareholders, directors and executive management so as to avoid conflicts of interest
and to preserve its best interests. Further, the audit committee was of the opinion that the
internal control system regarding connected transactions with interested parties (i.e. majority
shareholders, directors, management and related persons aforementioned) is sufficient,
which opinion was approved by the Board of Directors

10.2 The report of the audit committee of year 2018 as follows:

The audit committee jointly reviewed the 2018 annual consolidated financial
statements with the certified public accountant for presentation to the board of directors for
acknowledgement; discussed with relevant parties at meetings; reviewed compliance to the
provisions and laws; and deliberated on information disclosure of related items in conformity
with provisions of the Securities Exchange of Thailand.

The audit committee reviewed the consolidated financial statements and has an
opinion that the company prepared financial statements in accordance with generally
accepted accounting standards; adequately disclosed information; maintained regulating and
supervisory system; internal audit and risk management system is satisfactory with no
significant discrepancies are observed.

10.3 Chief of internal auditor of the Company

(1) Name of chief of internal auditor: Miss Huang Tsai - Ting

(2) Opinion of Board of audit committee to the qualifications of chief of internal auditor

Board of audit committee considered the qualifications of education、experience of the
chief of internal auditor who can perform internal audit positions effectively.

(3) Appointment, transfer and dismissal of the chief of internal auditor must be approved by
the Board of audit committee.

42