Information Technology Governance IT Governance Legal

1 66 66 b. Clear accountability for all employees, who have the tasks associated with the legal process of the Company, in accordance with their respective designated authority. c. All employees, who are involved in the legal process of the Company, should be free from any potential conflict of interest and keep prioritizing the interests of the Company. d. Provide services that can meet the needs of shareholders, the Board of Commissioners, Board of Directors, the Companys stakeholders in a fairly manner. e. Legal proceedings undertaken by the Company is in line with the implementation of the corporate strategy, which guarantee that the entire legal risk is under the supervision of the Board of Directors. f. Clear arrangement on the legal advices to the Board of Commissioners, the Board of Directors and Employees in order to perform their duties in compliance with the prevailing legislation. g. Clear recommendation on all legal implications of any contractsagreements with other parties within the corridor of legal risk management legal risk tolerance and be ackknowledged by the Board of Commissioners and Board of Directors, according to their respective authority, as prescribed in the Articles of Association and the prevailing legislation. h. If there is a summon from the court andor from other law enforcement agencies, either as a witness or to provide information in a matter relating to the Company, it should have been well- coordinated. i. Use of legal consultantlawyernotary to oversee legal proceedings, treaties and the legality of the Company or business unit that has been coordinated with internal legal unit and consider the costs and benefits for the Company.

10. Corporate Development

In the effort to maintain market position in the field of inspection and testing, in addition to using the generic strategies in maintaining the Companys business, the Company also seeks improvement of strategies of an-organic business and productmarket development. Development activities is focused on the prospective, innovative and feasible business that provide added value and competitiveness of the 1 C HA P T E R I IN T R O D U C T IO N C HA P T E R I I T H E PR IN C IPL ES O F G O O D C O R PO R A T E G O VER N A N C E C HA P T E R I I I T H E C O MP A N Y O R G A N S C HA P T E R I V T H E C O MP A N Y’ S PR IN C IP A L PO L IC Y C HA P T E R V I MA N A G EMEN T O F R EL A T IO N - SH IP W IT H ST A K EH O L D ER S C HA P T E R V I I IMPL EMEN T A T IO N O F G U ID EL IN ES C HA P T E R V I I I C L O SI N G C HA P T E R V MA N A G EMEN T O F SU B SI D IA R IES 67 67 Company by considering the principle of cost-conscious and scale of priorities. Policy in Performing Business Development: a. Developing business by alligning with strategic plans and policies of the Company and incorporating it into the Company long-term business plan, and also by considering changes in the business environment and the prevaling legislation. b. Conducting periodic market research to find out business opportunities, improving quality of productsservices, and creating new productservice. c. The results of business development can be accessed limitedly only by relevant parties, who are authorized, but not limited to reports, equipment, data, or information.

11. Financial Management

Financial of the Company should be managed professionally orderly, obedient to the regulations and the Company Work and Budget Plan, economical, efficient, effective, transparent, accountable and responsible by considering the risk and using the principle of prudence, and reflecting the management of balanced assets and liabilities. Procedures, policies and regulations related to financial management, either income or costs, should be composed and constantly reviewed with due regard to the accounting standards and prevailing legislation, and represents a good internal control system. Financial management is intended to increase the Companys value through the implementation of the work program, which is based on the principles of cost-conscious, profit oriented and good fund management as well as considering the risk. The Companys policy in managing finances: a. Managing integrated finance that is accommodating the interests of the whole operating activities, investment activities and financial activities of the Company as well as considering the segregation of duties between the functions of planning, implementation, verification, record keeping and reporting, storage and the depositing funds.