STRUCTURE AND MECHANISM OF CORPORATE GOVERNANCE

MONITORING AND EVALUATION

Monitoring is the process of assessing the quality of the Company's Internal Control System within a certain period of time. Monitoring and evaluation is carried out through:

Principle 16: Conduct Ongoing/Walking and/or Separate Evaluations

The Company establishes, develops, and carries out ongoing and/or separate evaluations to ensure that internal controls have been designed adequately and effectively.

1. Consider a mix of ongoing and separate evaluations Management balances the mix of ongoing and separate evaluations.
2. Develop an understanding of starting points
   The design and running state of the Internal Control System is used to establish a starting point for ongoing and separate evaluations.
3. Consider the rate of change
   Management considers the degree of change in business processes when establishing and developing ongoing and separate evaluations.
4. Using competent workers
   Evaluators who carry out ongoing and separate evaluations have sufficient knowledge to understand what is being evaluated.
5. Integrated with business processes
   Ongoing evaluation is built into business processes and adapted to changing conditions.
6. Evaluation objectively
   Separate evaluations are carried out periodically to provide objective input.
7. Adjust the scope and frequency
   Management adjusts the scope and frequency of separate evaluations, depending on the risk.

Principle 17: Evaluation and Communication of Internal Control Weaknesses

The Company evaluates and communicates internal control weaknesses in a timely manner to the parties responsible for taking corrective action, including the Board of Directors and the Board of Commissioners.

1. Assess results
   Board of Directors and Board of Commissioners assess the results of ongoing and separate evaluations.
2. Communicating weaknesses to management Weaknesses are communicated to those responsible for taking corrective action and to at least one level of management and above.
3. Report weaknesses to Board of Directors and Board of Commissioners
4. Significant weaknesses are reported to Board of Directors and Board of Commissioners, if necessary.