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16. Internal Control

The Company’s Board of Directors has appointed Audit and Corporate Governance Committee comprising three independent directors who are not the Company’s employees. Responsibilities are reviewing and auditing financial statements, supervising internal control, complying with rules and regulations and preventing any conflict of interests that may happen. The Company sets up its own internal audit department with aim to check and evaluate the internal control system of the Company and its subsidiaries. The Company prepares business code of conduct so called work book, implements the Key Performance Indicator (KPI) to control and evaluate the Company’s operations and incorporates risk assessment based guidance from COSO (The Committee of Sponsoring Organization of Treachery Commission). Internal audit department will report the auditing results and comments to audit committee and board of directors on quarterly basis. In the Board of Directors’ meeting 2/2013 dated February 25, 2013, Audit and Corporate Governance Committee (three independent directors), management and internal audit participated in this meeting. Following is the conclusion from the meeting regarding internal control system covering five areas;

1. Corporate and environment 2. Risk management 3. Internal control and operations 4. Information technology and communication system 5. Follow-up report

Both Board of Directors and Audit and Corporate Governance Committee agree with internal audit department that the Company and its subsidiaries have good efficient and proper internal control system. We found no error on the Company’s internal control system that can have significant negative impact on accuracy and reliability of the financial reports. Internal control also involves in checking the transactions between company and major shareholders, directors, management and/ or related persons. Gunkul Engineering Public Company Limited

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Gunkul 12  

GUNKUL_2012 GUNKUL ENGINEERING PCL Annual Report 2012

Gunkul 12  

GUNKUL_2012 GUNKUL ENGINEERING PCL Annual Report 2012

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