Page 377 - 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
3.3 Management fee income

HCDS Group: Management 31.19 27.02 21.14 The Company provided internal audit Transactions are
− Harng Central fee income services in bill payment or CenPay system normal course of
Department Store according to the conditions determined business transactions
Limited by Bank of Thailand to HCDS Group. which are favorable
− Central Embassy Hotel Since 2019, internal audit department to the Group. Service
Company Limited is responsible for auditing of this scope. rate is comparable to
− Lagrange Estate S.R.L. Service fees are comparable to other market rates or actual
− Illum A/S service rates in the market and the cost. Conditions
− Rina Estate Italia S.r.l. conditions can be agreed the condition can be agreed to
− The KaDeWe Group of general trading. condition of general
GmbH trading. Therefore,
− The 1 Central Company transactions are
Limited reasonable and
Moreover, business unit provides human beneficial to the
resource services to HCDS Group. Service Group.
fees are calculated by allocating actual
cost of the time that each employee
served the Group and HCDS Group. The
conditions of services are agreed to the
condition of general trading.
COL Group: Management 161.04 148.52 12.63 The Group entered into warehouse Transactions are
fee income management service agreements normal course of
(CRC group acquired COL with COL Group to provide services in business transactions
Group as subsidiaries in warehouse system management and which are favorable
February 2021. Therefore, goods distribution. Service fees are to the Group. Service
i n 20 21 , th er e w er e comparable to other service rates in rate is comparable
transactions in January the market and the conditions can be to market rates or
2021 only.) agreed with the condition of general calculate by cost
trading. plus margin and
will not cause any
In addition, business unit and COL disadvantages to
group entered into loss prevention the Group. Therefore,
agreement to conduct safety inspection transactions are
in products, stores, and equipment. reasonable and
Service fee is calculated by cost beneficial to the
plus margin and adjusted annually. Group.
If there will be an adjustment, it shall
be approved by the Audit Committee
before being applied. Service rates
do not cause any disadvantages to
the Group and the conditions can be
agreed with the condition of general
trading.

Annual Report 2021 (Form 56-1 One-Report) 377