Page 368 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

Transactions between the Company and its subsidiaries

with persons or companies which may have conflict of interest

Transactions between the Company and its subsidiaries with persons or companies which may have conflict of
interest during the year ended 31 December 2019, 2020 and 2021 can be concluded as follows:
(These following transactions are excluded effect of TFRS16: Leases)

1) Rental of land, building, and space in building

Persons or Companies Transaction value (Baht : Million) Necessity and
Audit Committee’s
which may have rationale of
conflict of interest Transaction 2019 2020 2021 transactions Opinion
1.1 Rental land, building, and space in building and other services expense
HCDS Group: Rental and 2,395.70 2,229.33 2,158.50 The Group lease and/or Transac tions are
− Harng Central service sublease land, building, business supp or t
Department Store Limited expenses and space in building, transactions of the
− Tiang Chirathivat including car park area, Group. Rates of rental
Company Limited and other relevant are agreed between
− Central Embassy Hotel services from HCDS to parties which are
Company Limited establish branches, stores, c omp arable with
− Overseas Fashions offices, or warehouses. market prices or lower
Company Limited Mostly, period of land than nearby property
− Central WHA Alliance lease agreements is and third-party rates.
Company Limited long-term period which is The Group has usual
− Bangna Department Store 30 years. Period of building business practice
Company Limited and space in building following the condition
− CRC Power Retail leased agreements are of general trading.
Company Limited not more than 3 years for Therefore, transactions
− Siam Retail Development short-term contracts and are reasonable and
Company Limited from 3 to 30 years for long- beneficial to the Group.
− Central Condominium term contracts. The Group
Company Limited has leased land, building,
− Prin Inter Trade Company and space in building
Limited which located in good,
− Teenee Wongsawang c on venienc e and
Company Limited well-known locations.
− Central Garment Factory The Group has leased
Company Limited these properties for a
− Vivi file Company Limited long time and considered
− Central Good Retail that it would be difficult
Ratchada Company to find other locations
Limited which had similar spec
− Centerl Inter Pattana and size. Therefore, the
Company Limited Group decided to continue
− Suannaklua Company leasing them.
Limited
− Ploenruedee Company Rates of rental and
Limited c onditions of lease
agreements were
− Phuket Hill Resort
Company Limited agreed b etween
− Z Retail Tech Company parties. Rental rates are
Limited comparable to market
− Cha-am Seaview prices or lower than
nearby property rates.
Company Limited
− Teenee Khonkhaen However, currently, the
Company Limited group has Business
− Rina Estate Italia S.r.l. development Department
− Lagrange Estate S.r.l. (BD) who is responsible
for procurement, market
− CRC Property Company
Limited price checking, comparing
− Central Marketing Group rental rate with nearby
Intertraie Co., Ltd. properties and negotiating
− Central Insurance Services on rental rates and
conditions with lessors
Company Limited
to get suitable rate and
achieve objectives of
leasing.

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