Page 78 - One Report Thai Final_ENG_2021

Tycoons Worldwide Group (Thailand) Plc.

9. Internal control and Connected transactions
9.1 Internal control
At the company’s Board of Director meeting No.1/2021 on February 24, 2021 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

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.

Internal Control/Audit System
The company has developed the internal control system to monitor and audit the
area including finance and operation to ensure that they comply with the law and
regulations. It would provide the balancing mechanism for the company to protect the
shareholders’ investment and the company asset. The company established internal
auditing unit to audit and ensure that all departments are operated in accordance with the
regulations, and moreover to assess the efficiency of the auditing work. The board of
directors ensured that the internal auditing unit is independent and can serve as balancing
mechanism. In 2020, the internal auditor has presented the report on the efficiency of the
control system to the board of audit committee and board of directors for review.

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