SET urges CMO to explain guidelines for adjusting the internal control system no later than 27 Feb.

SET urges CMO to explain guidelines for adjusting the internal control system no later than February 27, 2567 after the results of the Special Audit found disbursement of expenses that were not owned by the company. Total damage value is 25.55 million baht.

On February 14, 2567, the Stock Exchange of Thailand (SET) stated that it had requested the CMO to clarify the approach to improving internal control systems following a Special Audit conducted under the direction of the Securities and Exchange Commission (SEC). The audit concluded that the company had paid consultants for services that could not be proven to be related to the company's work, and that it had disbursed expenses that were not company expenses, resulting in damages totaling 25.55 million baht.

by the relationship between the company's executives and the consulting company It may indicate lack of care in management which may cause financial loss to the company. This could also suggest that the former Assistant Chief Executive Officer was a financial beneficiary of the Group's inappropriate expenses.

In this regard, the information must be clarified through the information dissemination system of the Stock Exchange of Thailand by February 27, 2567, and investors are requested to study the special audit report and follow the company's explanation.

By the summary of the results of the special audit report (Special Audit)

1. Hiring and paying a consulting company without actually receiving the service. The damage value was 19.8 million baht. The inspection results found that

• • Selection of consulting companies may not be clear and concise enough. The Executive Committee hired and selected 4 consulting companies without
    Consider comparing the consultants the company hires with other partners.
  • The Company has no additional evidence from the reports of 3 consulting companies (from the 4 companies mentioned above) that can be used as references or clearly prove that there is joint work between the Company and the consulting companies.
  • Found a relationship between the company's executives. (Chief Executive Officer and former Assistant Chief Executive Officer) with a consulting company may indicate laxity in management, which may cause financial losses to the company.

2.Inappropriate expenses of the group of companies The damage value was 5.75 million baht. The inspection results found that

• • The group of companies does not receive services from trading partners. But the expenses were paid away from the group. The company employs employees without contracts and advances.
  • The company and individual contractors are related to the former assistant chief executive officer. This may suggest that someone is financially benefitting from these inappropriate expenses.

The Group still has weaknesses in the internal control system that should be considered for improvement, including:

1. Lack of a clear and concise enough process for selecting vendors Service providers and consulting companies
2. Lack of process for tracking the performance of suppliers Service providers and consulting companies
3. Lack of process for considering the performance of the company group and joint decision-making by the company's executive committee
   (Details according to SETSMART news dated February 9, 2567)

The issues requested from the company include : the approach to improving the internal control system, the expected completion timeline, and the opinions of the company's board of directors and the audit committee on the proposed improvements to the internal control system.