Page 379 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

Persons or Companies Transaction value (Baht : Million)
Necessity and rationale of Audit Committee’s
which may have
conflict of interest Transaction 2019 2020 2021 transactions Opinion
4.2 Other Expenses

HCDS Group: Other 127.84 154.42 151.22 Other expenses that HCDS Transactions are normal
− Harng Central Expenses Group charged the Group can c ourse of business
Department Store be divided into 2 categories as transactions which the
Limited shown below. Group receive services
− Central Embassy Hotel from HCDS group. Service
Company Limited (1) Other services expenses rates are agreed between
− Z Retail Tech Company such as rental expense for EDC parties. The group will
Limited and system, licenses fee for have lower operating cost
− Central Payment software and computer system, than proceed all activities
Company Limited and operating expenses for by itself. In case of HCDS
− Cha-am Seaview bargain media and advertising make advance payment,
Company Limited expenses. Expenses would be HCDS will charge the
− The 1 Central Company annually agreed in advance Group with actual cost.
Limited or calculated based on cost Therefore, transactions
− Paton 1 Company plus margin. are reasonable and
Limited beneficial to the Group.
− Central Garment (2) Expenses that HCDS
Factory Company Group paid in advance such
Limited as marketing activities
− Tiang Chirathivat
Company Limited expenses, employee satisfaction
survey expense, and expense
− Baby Kiko Sdn. Bhd
for scholarship ceremony
− CRC Property
arrangement. These expenses
Company Limited
would be charged according
− Central JD Commerce
Company Limited to actual expenses that HCDS
group paid in advance.
− CRC Power Retail
Company Limited
− Central Food Retail
Ratchada Company Managements considered
Limited
that receiving services from
− Central Insurance HCDS Group would be more
Services Company
favorable for the Group because
Limited
HCDS takes advantages from
− Siam Retail economies of scale and has
Development
bargaining power over suppliers.
Company Limited
The Group will have lower
operating cost comparing
to proceed all activities by
itself. However, if there will
be an adjustment of service
rate or relevant conditions,
it shall be approved by the
Audit Committee before being
applied.
COL Group: Other 8.32 9.50 0.42 Other expenses that COL Transactions are normal
Expenses Group charged the Group c ourse of business
(CRC group acquired COL are mostly compensation transactions. Service rates
Group as subsidiaries in expense for damaged goods, and conditions are normal
February 2021. Therefore, compensation for damages operation or actual cost.
in 2021, there were caused by reduction of leasing Therefore, transactions
transactions in January space in department stores, are reasonable.
2021 only.) logistic expenses, miscellaneous
expenses, and IT support service
charges which are agreed in
advance and the rates are
comparable to services provide
by other companies.

Annual Report 2021 (Form 56-1 One-Report) 379