Page 374 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

Persons or Companies Transaction value (Baht : Million) Audit
Necessity and rationale of
which may have Committee’s
conflict of interest Transaction 2019 2020 2021 transactions Opinion
3.1 Management fee expenses (Cont.)

HCDS Group: Management 255.76 271.72 354.07 The Group receive accounting & Transactions are
− Harng Central fee expenses financial services from FAST (operates normal course of
Department Store under HCDS) such as accounting business transactions
Limited - Accounting entry, tax filing, financial statement which are favorable
− CGE Investment and Finance preparation, payment, issuance of to the Group. Service
Limited invoices and issuance of receipts. rate is calculated
Managements considered that the from c ost plus
Company would take advantages from margin and can
services provided by FAST because be comparable
of their expertise and specialization to market rates.
of employees. Therefore, the Group Therefore, transactions
and FAST have entered into services are reasonable and
agreements and agreed service scopes, beneficial to the
service fee, and conditions annually. Group.
The service fee would be referred
to cost plus margin and would be
adjusted annually. If there would be
an adjustment, it shall be approved
by Audit Committee before being
applied. However, these service fees are
comparable to other service charges in
the market and service conditions are
also appropriated and complied with
other services provided by FAST.

Management 105.41 96.88 80.25 The Company and its business units Transactions are
fee expenses received human resource services from normal course of
HCDS such as recruitment & selection, business transactions
- Human talent management, salary payment, which are favorable
Resources annual performance evaluation form, to the Group. Service
and communication with employees. rate is calculated from
Managements considered that HCDS cost plus margin and
would provide services with expertise can be comparable
and proficiency of their employees, to market rates.
and this would be advantages to the Therefore, transactions
Group. The Group and HCDS have are reasonable and
entered into services agreements and beneficial to the Group.
agreed service scopes, service fee,
and conditions annually. Service fees
are calculated based on agreed rates,
number of tasks and cost of services plus
margin which will be adjusted annually.
If there will be an adjustment, it shall
be approved by the Audit Committee
before being applied. Moreover, service
rates are comparable to other third
parties and service conditions are also
appropriated.

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