Page 136 - Amata-one-report2020-en

• The Company monitors the operations of its subsidiaries and affiliates on a regular basis, and provides
guidelines to the persons appointed as Directors or Executives of such companies in order to ensure that

the operation of these companies correspond with the Company’s goals. The Company and its subsidiaries
have also set up a monitoring policy to ensure that the operations of the Company, and that of its
subsidiaries and affiliates, comply with all relevant laws and regulations. The Company also adopts preventive
measures to prevent any violation of the law.

Section 4 Information and Communication Measures

The Company and its subsidiaries have organized its information technology system to cover the Company’s
performance at the corporate level, the financial reporting level, the operating unit level and the policy compliance level

to ensure effective communication to enhance achievement of the objectives and goals of the Company. Convey of
such information to the relevant persons is extremely important and enhances the effectiveness of the internal control
system as follows:

• The Company and its subsidiaries provide the Board of Directors with essential information to support their
decision making. Such documents are delivered, together with the invitation to the Board of Directors’ meeting,
at least 7 days in advance of the meeting so that the Board of Directors have sufficient time to study such
documents, except in an emergency case in which the documents cannot be delivered at least 7 days
in advance.

• The Company and its subsidiaries require that the record of the minutes of the Board of Directors’ meetings
contain appropriate details, which are the basis for decisions made for each agenda item. Also, there is
a record of Directors’ inquiries, comments, and observations regarding each matter being considered
during the Board of Directors’ meeting.

• The Company and its subsidiaries maintain and categorize all its accounting records and books in a manner
to allow for their being easily investigated. The accounting policy of the Company and the subsidiaries
is determined in accordance with the main business operations of the Company and subsidiaries and
are not contradict with Generally Accepted Accounting Principles.

Section 5 Monitoring Measures

The Company and its subsidiaries monitor compliance of the established procedures on a regular basis.
The internal control system is continuously reviewed and improved to be in line with changing situations and all errors
are immediately rectified as follows:

• The Company and its subsidiaries monitor and evaluate the internal control system in the light of actual
operations. The Company and its subsidiaries regularly conduct meetings to consider whether the performance
result is different from the established goals, and would propose necessary operational guidelines so that
the Company and its subsidiaries can rectify any errors within appropriate timeline.

136 56-1 One Report 2020