The Audit Committee is empowered by the Board to examine all matters relating to the operation of the Company and its internal and external audit work programmes. These include reviews of the annual and interim financial statements, internal reporting, internal control procedures, accounting and regulatory standards and SET/SEC notifications. It is also empowered to recommend the appointment and fees of external auditors. The Committee reports to the Board.

In the year 2000, the Audit Committee continued its efforts to enhance the practice of Good Corporate Governance. The Committee had four official meetings to review the quarterly financial statements. Apart from reviewing the draft of the Internal Audit Charter and approving the Internal Audit Plan for the year 2000, the Committee also has the oversight of the Internal Audit Department and gives recommendations on the audit activities.

During the year, the Internal Audit Department actively performed its duties and responsibilities to assure that the objective of the organisation is being met, despite a shortage of staff. The department is in the process of recruiting other staff so that it will be effectively up to strength.

The Audit Committee recommended the Board to propose to the Shareholders to adopt the following resolution:

"Resolved that Mr. Narong Puntawong, Certified Public Accountant (Thailand) No. 3315, Mr. Ruth Chaowanagawi, Certified Public Accountant (Thailand) No. 3247 and Mr. Sophon Permsirivallop, Certified Public Accountant (Thailand) No. 3182 of Ernst & Young Office Limited be appointed as the Company's auditors for the fiscal year 2001, any one being authorised to conduct the audit and express an opinion on the annual financial statements of the Company".

The proposed fee of Baht 680,000 per annum, excluding out-of-pocket expenses, is deemed reasonable.

On 14 February 2001, the Committee reviewed the Annual Accounts of the Company for the year 2000 and will ensure the proper follow up of any recommendations made by the External Auditors where necessary.

The Audit Committee recommended the Board to present the Consolidated and Company Financial statements of the Company for the year ended 31 December 2000, as submitted for adoption by the Shareholders.