Page 124 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

(7) Corporate Services
In managing cash and liquidity, Central Retail implements
a cash pooling system, which pools cash from various bank
accounts opened at different locations of the business Central Retail has entered into several corporate
units into a single bank account of the parent company of services agreements with HCDS, Central Retail’s
such business units on a daily basis. This is to ensure that major shareholder, pursuant to which it has agreed to
there is no surplus of cash or bank deposits that are not provide Central Retail with certain corporate services
utilized for liquidity management purposes and to ensure with respect to management, finance and accounting
that business units do not suffer from liquidity issues or and legal services, and including certain aspects of
have to incur interest expenses form lacking liquidity. human resources and other functions. Central Retail
also engages RIS Company Limited to provide Central
(6) Quality Control Retail with IT services.

All products sold in stores are subjected to inspection by (8) Long-Term Business Plan
each store at the time they are delivered by the suppliers.
The same standard of quality is adopted for merchandise Central Retail has still set long-term strategic goals
sold through both consignment and credit sales. If any to achieve sustainable growth in revenue and profits
defects are detected, the relevant product will be returned with customer-centric omnichannel platforms with
to the supplier for replacement. Central Retail will permit various formats and channels in Thailand Vietnam and
any products that need governmental’s approval only. Italy (Multi-Category, Multi-Format and Multi-Market).
Under standard supply agreement, suppliers are responsible To achieve the aforementioned goals, Central Retail has
if any claims arise from the quality of their products. established business expansion guidelines by developing
The agreement also stipulates that only genuine products an omnichannel platform to offer innovative retail formats
can be sold in stores. to provide diverse and convenient experiences to meet
the lifestyles of all groups of customers in Thailand and
Under the terms of standard supply contracts with suppliers, expand to overseas business in the future.
they are required to give Central Retail product quality
assurance. In addition, all product liability in respect of any Central Retail is committed to improving efficiency in
products supplied to Central Retail by any supplier and sold its work processes in all units, carrying out financial
at stores is borne by such supplier. By carefully selecting management tasks to maintain liquidity and focusing
suppliers, Central Retail believes Central Retail can also on strategic growth projects both domestically and
reduce the risks arising from quality problems. internationally to ensure future growth in according
to the goals. Examples can be seen in expansion of
stores of Thai Watsadu, Robinson Lifestyle, Big C / GO!
Vietnam, etc., including the development of new stores
format or new brands that can respond to customer
needs and build synergy among each business units in
Central Retail.

In addition, Central Retail has studied mergers and
acquisitions (M&A) opportunities including high growth
potential business to generate new revenue channels
and strengthen its business in accordance with the
growth plan and future goals in a stable and sustainable
manner.

124 Annual Report 2021 (Form 56-1 One-Report)