The internal control system that applies in the Company was built by referring to generally accepted internal control standards and in accordance with best practices in the industry. The system was established to control and prevent risks in the business run by the Company.

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The internal control system implemented by the Company consists of the following components:
1. Business risk reduction
2. Protection of the Company’s assets
3. Reliable financial reporting system and
4. Fulfillment of applicable laws and regulations

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All of these components have been appropriately implemented by the Company, including in each of the duties and responsibilities of the Company’s organs.

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Financial Control System

The Company implements a financial control system by managing finances based on sound principles, enabling the Company to minimize waste and deviations while optimizing its revenue.

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Operational Control System

The operational control system is implemented through planning, supervision and evaluation of documented operational procedures, considering aspects of occupational safety, health and the environment. The Company has established standard operating procedures (SOPs) that govern its operational activities. Every employee of the Company is required to adhere to the applicable SOPs and work in accordance with the established procedures.

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Compliance Control System

The compliance control system with laws and regulations is carried out by monitoring the development of regulations, as well as planning, supervising and evaluating compliance related to all business activities of the Company.

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Overview of the Effectiveness of Internal Control System

The Company continues to review the effectiveness of the implementation of SPI periodically and thoroughly and to provide confidence to interested parties regarding the Company’s operational activities.

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Statement of the Board of Directors and/or Board of Commissioners on the Adequacy of the Internal Control System

The Board of Commissioners and the Board of Directors view the implementation of the internal control system throughout 2023 to be quite adequate.. Furthermore, the evaluation results will be used as a basis for Management to improve and develop the internal control system so that its implementation can run effectively and efficiently, as well as to encourage growth and sustainability of the Company’s business.