Internal Control and Connected Transaction Internal Control The Board’s Views on the Internal Control System IRPC Public Company Limited has implemented internal control in accordance with the internationally-accepted COSO Internal Control – Integrated Framework to achieve objectives in 3 areas: Operations, Reporting, and Compliance. The management and the internal control unit have created an internal control assessment form in accordance with the rules prescribed by the Securities and Exchange Commission (SEC) as well as reviewed and given opinions on recommendations made by the Audit Committee before reporting to the Board of Directors at Meeting No. 1/2022 of January 18, 2022, also attended by independent directors and the Audit Committee. The Board was of the opinion that the Company’s internal control system was sufficient and appropriate, and no significant deficiencies detected that could compromise the ability of the internal control system to achieve its objectives. The Company has put in place appropriate procedures and competent personnel to ensure efficient and effective implementing internal control, accurate and reliable reporting, and conduct businesses in full compliance with relevant laws and regulations. That is to safeguard the Company and its subsidiaries’ assets against fraud or abuse by directors, executives, or employees as well as to prevent transactions with potential conflicts of interest involving related parties. The Company’s internal control system has undergone constant revision and updating to correspond with changing external and internal contexts. In 2021, the Company further developed its internal control system and summarized internal control outcomes for publication in its annual report in accordance with COSO (The Committee of Sponsoring Organizations of the Treadway Commission) framework, which consists of five internal control components as follows: 1. Control Environment The Board and the management promote a corporate culture that nurtures talent and integrity of the Company’s employees. This not only enables the Company to effectively and sustainably align business operations to its vision and mission, but also to foster business ethics and corporate governance through the establishment of sound and appropriate internal control environment as follows: The Board and the management have set good corporate governance policy, compliance policy, internal control policy, anti-corruption policy, personal data privacy (PDP) policy, and code of conduct, requiring employees at all levels to submit conflict of interest declaration form electronically every year. There is also ethics self-assessment form for executives and employees to complete, along with the introduction of corporate governance handbook (revised edition), prescribing best practices in various fields that executives and employees must sign to acknowledge, uphold, and implement. The Board, independent from the management, is tasked with overseeing the Company’s overall business operations and giving opinions on the strategic direction underpinning the business and operational plans as well as monitoring the Company’s operating results and the performance of directors on a regular basis to ensure corporate objectives are met. IRPC organizes itself along the business group and business function structures to enable efficient corporate management focusing on the unwavering strategic direction of the entire group of companies. Segregation of duties in critical functions is designed to ensure checks and balances. In addition, approval authority regarding the Company’s business operations and transactions is subject to review on a regular basis. The Company also formulated an overall short- and long-term human resource development plans with clearly defined qualifications for individual positions and put in place succession planning 273 Internal Control and Connected Transaction IRPC PUBLIC COMPANY LIMITED
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