Page 22 - TYCONS - ANNUAL REPORT 2022

Tycoons Worldwide Group (Thailand) Plc.

(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.

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. 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.

Environmental Impact Risks

Due to the Company's production process may cause pollution to communities near
the factory. The Company has prevented problems that arise. Therefore, a working group
has been set up to manage energy and environment. To set guidelines for implementation
and follow up on management in matters related to the environment both within and
outside the factory with the concept of 3R which is Reuse, Reduce, and Recycle, thus
reducing the amount of waste in the production process. Minimizes dumping of waste
materials and reduces waste disposal costs. Production processes have been improved to
reduce water and energy use, especially the use of electricity. The Company has begun to
replace more efficient equipment in the production process and install solar cell lamps
beside factory buildings and roads to reduce electricity consumption and improve the
production process to reduce dust and odor, as well as require measurements continuous
impact by the results of the audit in the past year, the Company has passed all the items of
industry standards. Does not affect or destroy the environment and resources of the
community. In order to reduce the company's losses and liabilities caused by environmental
pollution incidents and protect the environmental benefit of third parties, the Company has
purchased environmental liability insurance from insurance companies.

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