Page 134 - Amata-one-report2020-en

Internal Control and Related Party

Transactions

Internal Control Systems

Conclusion of Board of Directors’ Comments on the Internal Control Systems

The Audit Committee has reviewed and evaluated the internal control system and then report findings to
the Board of Directors in order to ensure good corporate governance and extends to internal controls in various areas,

such as Organizational Controls and Environmental Measures, Risk Management Measures, Management Control
Measures, Information and Communication Measures, and Monitoring Measures, as per the below details.

Section 1 Organizational Controls and Environmental Measures

The Company considers that a good organizational structure and a quality work environment are very important
for an effective internal control system. Therefore, the Company focuses on creating the conditions and factors that
facilitate the internal control system of the Company and its subsidiaries in order to operate as the Company expects.
Further, the Company encourages every employee to understand the following key features of the internal control system:

• The Board of Directors of the Company and its subsidiaries are responsible for setting clear business
goals. The Management regularly hold meetings to determine the operation plan of the Company and its

subsidiaries; to increase the business of the Company and its subsidiaries to reach the established goals;
and to consider approval of annual budgets. Also, Executives of all departments are notified in order to
ensure that their management accords with the established goals.

• The Company and its subsidiaries thoroughly consider and review the operational goals of each operating

level by reviewing past performance, the economic situation, and other factors which would allow employees
to carry out their assigned duties efficiently, and to motivate and compensate the employees efficiently.

• The Company and its subsidiaries determine the organizational structure with consideration of the efficiency
of the organizational management, and notify the employees of any changes to the structure.

• The Company and its subsidiaries establish guidelines related to the Code of Conduct, rules, practices
and penalties for management and employees.

• The Company and its subsidiaries establish policies and procedures concerning approval of transactions
related to finance, procurement and asset management to prevent any misconduct.

• The Company and its subsidiaries maintain a policy of Good Corporate Governance and set principles
and a business plan which take into consideration fairness in doing business with all related parties and

stakeholders.

134 56-1 One Report 2020