Internal Control and Connected Transactions Internal Control Summary of the Board of Directors’ Opinion on the Internal Control System IRPC has implemented internal control in accordance with the internationally-accepted COSO Internal ControlIntegrated Framework to achieve objectives in 3 key areas: Operations, Reporting, and Compliance. The internal control unit’s strategic planning and sustainability section, has developed 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 and taking into consideration suggestions made by the Audit Committee, before reporting to the Board of Directors at Meeting No. 2/2567 on February 13, 2024, with independent directors and the Audit Committee also attending. 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 internal control, accurate and reliable reporting, and business conduct in full compliance with applicable 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. IRPC’s internal control system has undergone constant revision and updating to correspond with changing external and internal contexts. In 2023, 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, courage and integrity among the company’s employees. This not only enables the company to align business operations effectively and sustainably 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 formulated corporate governance policy, corporate compliance policy, internal control policy, anti-corruption policy, personal data protection policy and code of conduct. Employees at all levels are required to submit conflict of interest declaration form electronically every year. There is also professional ethics self-assessment form for executives and employees to fill, along with the introduction of corporate governance handbook (revised edition), prescribing good practices in various aspects of business operations that executives and employees must sign to acknowledge, uphold, and implement. The Board, independent of the management, is entrusted with the power to oversee the company’s overall business operations and to give opinion on the strategic direction underpinning the business and operational plans. The Board also monitors the company’s operating results and the performance of the Board on a regular basis to ensure the company accomplishes the predetermined corporate goals. IRPC organizes itself along the business function structures to enable efficient corporate management focusing on steering the entire group of companies in a common strategic direction. 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 regular reviews. The company also formulated an overall short- and long-term human resource development plans with clearly defined job description and qualification for individual positions. 268 Internal Control and Connected Transactions IRPC Public Company Limited
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