The Practice of Audit Work

Policy
For preserving and protecting CHC's reputation and properties, preventing fraud, stealing, occupying or other unethical and unintegrated behavior, CHC builds up reporting channels and processes to optimize corporate governance and ensure the legal right of prosecutors and relevant persons in accordance with the” Codes of Ethics for First Echelon Supervisors and Executives ” ,“Work Rules for Employees” and “Integrity and Ethics Directions for Employees of China Steel Corporation Group” etc.
Principles of Acceptance
Practitioners should get along well in harmony and mutual understanding, however, for protecting the interests of CHC, practitioners also should have their obligation for reporting fraud or misconduct.
The prosecution of illegal matters should follow a proper way with specific evidence. Intending to make others disciplinary with fictional facts or false accusations is not allowed.
Designated Applicable objects
CHC has established a reporting hotline and e-mail and other acceptance channels to provide internal and external personnel with the opportunity to report and accept crimes, fraud or illegal situations.
Designated Receiving Unit
Auditors office is the unit responsible for reporting cases and is responsible for accepting and verifying cases reported by internal and external personnel.
Independent Hotline
1. TEL : 07-9736698
2. Emai：ia00@chc.com.tw
The whistleblower should provide information
1. The whistleblower must provide the whistleblower's name, professional title, phone number, unit, address, and specific evidence of CHC's involvement in crimes, fraud, or illegal activities.
2. If the content stated by the whistleblower is specific and clear, and is accompanied by information or directions for verification, and Auditors Office thinks that it necessary to investigate, the report could be accepted.
Procedures for the Receipt of Complaints
1. PIC of Auditors Office shall fill in the “ Record of Cases Reported of Auditors Office ” after complaints received.
2. Auditors Office should clarify the purpose of the report and specific evidence, fill in the report sign-in form or project report, and submit it to the Chairman of the board for approval.
3. If directors or senior managers are involved in the investigation results of whistle-blowing cases, Auditors Office should report to the independent directors or the audit committee.
4. The Auditors Office records reporting cases, and handles all relevant information from all processes including acceptance, filing, investigation and reporting, including the original data, worksheets, audio files and other forms of data processing. The relevant reporting information is processed in a confidential manner and archived throughout the entire process for future reference.
Different reporting object acceptance levels
1. Cases reported by internal and external parties involving the CHC's crimes, fraud or illegal activities will be accepted by Auditors Office and reported to the Chairman of the board.
2. When the report involves a director or senior executive, the audit office should report it to the independent directors or the audit committee.
3. If the report involves the auditor chief, the agent of the auditor chief will be the handler and deal with the investigation and report-related work.
Preserving records of reported cases
The acceptance of reporting cases, investigation process, investigation results and related documents, etc., shall be recorded and preserved for at least five years, and shall be preserved electronically. Before the retention period expires, if a lawsuit occurs related to the reported content, the relevant information shall continue to be retained until the conclusion of the lawsuit.
Whistleblower protection system
When handling whistleblowing cases, the identity information of the whistleblower and interested parties should be kept confidential, and the whistleblowing behavior should avoid damaging the rights and interests of the whistleblower and interested parties.