Page 15 - Annual report eng 2019

Tycoons Worldwide Group (Thailand) Plc.

balance each other, resulting in a natural hedge. TYCN can also avoid the foreign
exchange risk by signing forward contracts to offset the net foreign exchange position.
TYCN group uses USD loans for working capital and long term investment. Therefore,
the interest rate should be carefully watched. TYCN can choose interest rate exchange
or repay USD loans by using THB loans to avoid risks of foreign exchange rate and
interest rate.

TYCN engages in derivatives trading based on actual need and according to TYCN’s「
Procedures of engagement in derivatives trading」. In addition to hedge tools for
foreign exchange rate and interest rate, TYCN also take actions such as:

(1) Set up foreign exchange rate monitor system to get real time information on
exchange rate.

(2) Get reports and hedge strategies about foreign exchange market from banks on a
daily basis.

(3) Check the net foreign exchange position on a daily basis and adjust it according to
the updated information.

3.2.2 Credit policy
There is no significant credit risk between TYCN and its customers. TYCN set credit
lines for its customers by market, products and payment terms. TYCN controls shipment
and collection by using ERP, which allows TYCN to instantly monitor the status of
customers’ credit lines. An approval is necessary for any shipment which is over credit
line. A guarantee deposit, advance payment, or AR insurance is required when a
shipment is made with long payment term or to a high-risk market.

3.2.3 Software and Web technology
The whole production and management of TYCN’s operation are controlled by ERP
and internet system. TYCN has protective measures and backup plan to prevent the
company from suffering from unexpected power failure, hardware damages and
hacker attacks.

4. General information and other significant information

4.1 General information

4.1.1 Name of the company: Tycoons Worldwide Group (Thailand) Public Company
Limited (TYCN)
Type of business: To manufacture and distribute wire rod, reinforcing bars (including
deformed bars and round bars), annealed wire, screw, bolt and
thread rod.
Location: 99 Moo1, Tumbon Nikompattana Amphur Nikompattana, Rayong
21180 Thailand
Registered share capital: 596,748,900 common shares, 5,967,489,000 Baht.
Issued and paid-up share capital: 596,748,900 common shares, par value
10 Baht, paid-up Capital 5,967,489,000Baht.
Company registration: 0107546000172
Telephone No. : (033)-658-558, (038)-636975

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