Audit Committee’s Report

Audit Committee’s Report

The Audit Committee of the Thailand Tobacco Monopoly, Ministry of Finance, for the fiscal year 2014 is composed of three members of TTM’s Board of Directors, serving as independent directors:

– Mr. Kraisorn Barameeauychai as Chairman of the Audit Committee

– Pol. Gen. Chalor Chuwong as Audit Committee

– Mr.Polchai Jitivilailux as Audit Committee

– Director of Internal Audit Department as Secretary of the Committee

TTM, Ministry of Finance changed the Board of Director on 1 July 2014 and there have not been the complete qualified independent directors according to the Audit Committee of the Thailand Tobacco Monopoly, Ministry of Finance, for the fiscal year B.E. 2556 yet. During this period, the Board of Directors would reviewed the issues need to be reviewed by the audit committee. The Audit Committee has overseen the operations of TTM according to the duties and responsibilities assigned to it by the Operation Manual for Audit Committee of the State Enterprise, revised edition, B.E. 2555, which is consistent with the Regulation of Thailand Tobacco Monopoly, Ministry of Finance, on the Audit Committee, B.E. 2556 . In the fiscal year 2014 (October 2013 – September 2014), the Audit Committee has arranged meetings according to TTM’s agendas and meetings with top executive officers, department-level leaders, officers involved, and auditors from the Office of the Auditor General of Thailand. There were 9meetings in total, which can be summarized as follows:

– Audit the annual financial statements for its correctness and credibility; discuss accounting and finance practices with the Office of the Auditor General of Thailand; acknowledge monthly and quarterly financial reports with comparison to the reports from the previous year and the financial plan of fiscal year

2014

– Audit risk management and internal control system of TTM for its appropriateness and adequacy

– Acknowledge the operations of the Office of Information Technology

– Regularly audit the internal audit reports of TTM; approve the work of the Internal Audit

Department, such as strategy plans and operational plans for 2014 and the annual auditing plan for fiscal

year 2014 about human resource management

– Evaluate the performance of the Director of Internal Audit Department; approve the performance evaluations and merit considerations of officers for promotion within the department; select new auditors; plan for human resource development

– Prepare the Audit Committee Report to present to TTM’s Board of Directors and the Ministry of

Finance

– Commit an annual self-evaluation for the members of the Audit Committee

The Audit Committee declared that risk management, internal control, and supervision of the

TTM’s business governance have been effective. Financial statements are accurate with adequate disclosure under related accounting standards. The Audit Committee has performed their duties independently. Supervision and advices were given to TTM’s management team and other meeting participants in a straightforward manner for the TTM’s benefits and all its stakeholders. This drives the operations of TTM to successfully achieve its objectives and goals.

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