Page 350 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

9.1 The Board of Directors’ Opinions on Internal Control

The Board of Directors is aware of the importance of having good internal control systems. It is an important duty to
be taken to ensure that the Company has appropriate and sufficient internal control systems to efficiently oversee
the operations to meet the goals, objectives, laws, and relevant requirements, to be able to protect assets from
any fraud and damage, and to do accounting and financial report with accuracy and reliability that is disclosed
completely and adequately in a timely manner.

The meeting of the Board of Directors No. 2/2021 held on 25 February 2022 was attended by 5 independent
directors, 3 of whom were members of the Audit Committee. The Board of Directors considered and assessed
the sufficiency of the internal control systems of the Company and subsidiaries by using the assessment form for
the sufficiency of the internal control systems of the Securities and Exchange Commission (“SEC”) and asking the
information from the management of the Company. The Board of Directors considered the internal control systems
of the Company in 5 parts according to the guidelines of The Committee of Sponsoring Organizations of Treadway
Commission (“COSO”) which consists of:

(1) Control Environment
(2) Risk Assessment
(3) Control Activities
(4) Information and Communication
(5) Monitoring Activities

After consideration of such assessment form, the Board of Directors was of the opinion that the internal control
systems of the Company and subsidiaries were sufficient and appropriate while having adequate personnel to
efficiently implement the systems as well as oversee operations to sufficiently safeguard the assets of the Company
and subsidiaries from wrongful conduct or without authority and transactions with persons that may have conflict
of interest and related persons. The assessment results on the sufficiency of the internal control systems in 5
components as follows:

Part 1 Control Environment

• The Company considered the operational goals through the preparation of the Company’s strategic plan
and the review of the annual budget plan at the meeting of the Board of Directors. The Company’s business
operations adhere to ethics which require the Company to conduct business with good corporate governance,
transparency, and efficiency.

• The Company values the importance of integrity and ethics. The Board of Directors imposes a good corporate
governance policy, an anti-corruption policy, and a “Code of Conduct” handbook in writing, officially announced
to be abided by the Company’s employees at all levels. The said handbook specified ethical requirements and
regulations that the Company’s employees at all levels should perform or not perform in a manner that may
cause conflict of interest with the business. There is also an Internal Audit Department responsible for reviewing
compliance with the Code of Conduct and a performance assessment policy which specifies ethical practices
as one of the assessment criteria. The Company set up a Compliance Unit to oversee the Company’s personnel
and internal units to perform duties or work in compliance with relevant regulations. And in 2021, the Company
established a Compliance Agent to coordinate with the Compliance Unit and related departments, as well as
auditing and monitoring compliance with the regulation. In addition, the Company also appointed Sustainability
working teams to ensure more efficiency in sustainability operations.

350 Annual Report 2021 (Form 56-1 One-Report)