Internal Control

Internal Control System

NTC established an effective internal control system based on the Company and its
subsidiaries' overall operation activities and its industry in accordance with the "Regulations
Governing Establishment of Internal Control Systems by Public Companies". The
Company conducts reviews at any time to respond to changes in the Company's
internal and external environment as well as to ensure that the system design and
implementation remain effective.

The implementation of the internal control system is a continuous operation. We continue
to inspect various business and management operations and detect deviations from
company policies, operating procedures, existing goals, or standards. We use a
feedback system to respond to the appropriate management level and take necessary
corrective actions for the issues to ensure the Company's operations are implemented
in accordance with the original plans. We use the internal control system to complete
audits and prevent abuse in operations.


Internal Audit

NTC established Corp. Audit under the Board of Directors and appoints dedicated
auditors who participate in related auditing courses organized by professional training
institutions each year to improve their professional skills. We also use the professional
and independent internal audit operations framework to implement internal control in
all levels of the Company.

In addition to the audit report on the status of correction of defects and irregularities of
internal control systems, the internal auditors shall follow up and provide reminders to
ensure that relevant units take appropriate improvement measures in a timely manner.
They shall submit the measures to the Independent Directors for review before the end
of the following month after the completion of the audit report. Internal audit is not
merely the responsibility of the independent audit department. The Company's units
must complete independent business inspections within the specified cycles for specific
audit items. Independent audit units shall review the results of the self-inspections and
implement review inspections regularly or from time to time to ensure the execution of
the internal control systems of each unit.

Grievance and Complaint Channels

NTC has established the "Employee Complaint Guidelines" and "Reporting Regulations"
to provide employees with channels for reporting any unlawful or unethical conduct.
When employees discover a breach of laws or inappropriate conduct that affects the
interests of individuals or the Company or other related material issues or where an
individual attempts to gain unlawful interest by abusing the power of their office, they
may file reports at any time for responsible dedicated units to take charge of processing.
In addition, we also established a report hotline (02-29061001) on the Company's
official website and a dedicated email (audit@ntc.com.tw) to provide complaint
channels for stakeholders for infringements of their rights. We also assign dedicated
personnel to take charge of processing the complaints. To protect the whistleblower,
personnel responsible for processing cases shall conduct investigations based on the
confidentiality principles and they shall be prohibited from disclosing cases to unrelated
personnel. When investigating related individuals, the processing personnel shall
only discuss parts that are relevant to the individuals to protect the identity of the
whistleblower.


Grievance and complaint cases