AUDIT CHARTER - INTERNAL AUDIT UNIT

POLICY
It is companys policy to support Internal Audit Unit as an independent objective assurance and
consulting activity designed to add value and improve the Groups operations.
OBJECTIVE
Internal Audit Unit aims to assist and be a partner to the organization to accomplish its
objectives by bringing a systematic, disciplined approach to evaluate and improve the
effectiveness of risk management, control and governance process.
DUTIES AND RESPONSIBILITIES
In carrying out their duties responsibilities, members of Internal Audit Unit will have full, free and
unrestricted access to all relevant company activities, records, property and personnel. The
scope of internal auditing encompasses the following:

Internal Auditors have no direct responsibility or authority over any of the activities which
they review. Review and appraisal by Internal Audit Unit do not in any way relieve other
persons in the organization of the responsibilities assigned to them.

To assist the organization in identifying and evaluating significant exposures to risk and
contribute to the improvement of Risk Management and control system.

To review organizations within each company at appropriate intervals to determine whether

they are efficiently and effectively carrying out their functions of planning, organizing,
directing and controlling in accordance with Managements instructions, plans, policies and
procedures, and in a manner that is consonant with both company objective and high
standards of administrative practice.

To determine the adequacy, integrity and effectiveness of each companys system of internal
control over operations management and management information systems including
systems for compliance with applicable laws, regulations, rules, directives and guidelines.

To provide assurance on compliance to statutory requirements, company policies,

guidelines, procedures, laws, and regulations which could have a significant impact on
operations and reports and suggest guidelines and procedures where required.

To evaluate procedures in place to safeguard company assets and, as appropriate, verify the
existence of such assets.

To appraise the resources employed. Identify opportunities to improve operating

performance and recommend practical solutions where appropriate.

To provide advisory services as part of the routine audit activities as well as in response to
requests by management.

The findings and recommendation of Internal Audit Unit shall be made available to the
relevant manager and senior management for corrective action.

To follow-up and ensure adequate, as well as effective corrective action is taken.

Any other duties as directed by the Audit Committee or the Board of Directors.

Any special review and investigative audit as directed by Chief Executive Officer.

RESOURSES AND STAFFING

The Internal Audit Department Unit must be adequately staffed and provided with the necessary
resources to discharge their duties independently and effectively.
OTHERS
The Operating Division Manager is responsible for seeing that corrective action on reported
weaknesses is planned and taken within a reasonable time from receipt of a report disclosing
those weaknesses.
In addition, Internal Audit Unit must be immediately informed if any of the following occurs:

Any change in circumstances which may lead to a major movement in assets/ liabilities, for
example the disposal of fixed assets, change of premises and so forth.

Any burglary of theft affecting Group assets that involved an insurance claim.

Discovery of any suspected cash defalcation or fraud.