Page 48 - Annual report eng 2019

Tycoons Worldwide Group (Thailand) Plc.

11. Connected transactions

11.1 During the year 2019 and 2018, the company has entered into connected transaction with persons/parties, which may create conflict of interest
as follows:

Person who may have conflict of interest Amount of connected
Relationship transaction (MB) Pricing policy / Necessity and Appropriateness / Remarks
Transaction 2019 2018
1.Tycoons Group Holding Revenue from sale 673 1,726 The audit committee reviewed and commented as follows:
Enterprise (TGE) 100% (1) Sales for wire rod and annealed wire : The market in Taiwan is substantially large
Shares of Total Purchase of 68 196 relative to Thai market, thus motivating TYCN selling to TGE in Taiwan. Some of wire rod
Parent raw material and annealed wire sold to TGE will be used internally whilst most of it will be on sold to
company and supplies Taiwanese customers. The logic behind selling through TGE is due to TGE’s long-term
relationships and profile with Taiwanese customers. It can directly grasp the market information
Purchase of fixed 6 7 through it, and can avoid the sales expenses of the company to establish the marketing channel
assets again or need to invest in marketing in Taiwan market.

2.Tycoons Group Parent Total Purchase of - 272 (2) Materials, supplies and fixed assets. : The transactions between the Company and the parent
International company raw material company TGI and the associated company TY STEEL's for raw materials and fixed assets are
(TGI) and supplies based on the operation requirements and the transaction price is based on the market price. The
raw materials purchased from TGE are mainly used to produce fasteners specifically, the
annealed wire chemical component, die and machinery parts cannot be acquired locally,
therefore will are sourced in Taiwan via TGE. The main consideration is still based on TGE
3.TY Steel 30.57% Total Purchase of
Company owned of raw material 2,812 4,095 understanding of the market and bargaining power in purchasing, which can reduce the waste
Limited TYCN of the company’s manpower and time. The audit committee reviewed and commented that
Sales 84 104 purchase item from the parent company is considered to be normal trading.

Sales of lands - 48 (3) Credit terms for the related party was set to be 30 - 60 days, because of the transportation,
inventory and re-sale period of TGE to end-customers.
Other income 8 5

Purchase of goods 2,326 992 (4) The pricing policy for inter company purchase and sale transactions with its related parties
normal are at market price.
4.Jing Hai 19.75% Sales 99 195
Hardware Co., owned of
Ltd. 1 6

41