Page 70 - 56-1 One Report 2022 EN

Part 1 Business Operation and Operating Performance

according to the needs of customers
and standards.

3.2.2.4 Supply chain management
Development and management of relationships with suppliers (business partners)

The Company has a supplier database system that is reviewed and updated on a regular basis in order to provide
an up-to-date database for analyzing and ranking suppliers. It is important to have the suppliers list on hand
whenever a crisis occurs, according to the business continuity management program. The satisfaction with
products and services delivered by suppliers is assessed by internal users and the results are analysed through
the corporate procurement process to screen and prioritize suppliers. In addition, the results are also used as
feedback for suppliers to improve their products and services to meet the needs of users, which will result in good
business cooperation in the long term.

On the other hand, the Company provides its suppliers the opportunity to file a complaint if they find unfair treatment
from doing business together or fraudulent procurement from outsourcing other suppliers. The Company provides
a channel to send complaints through "Ethics Hotline" on the website, and also issued a “Whistle-blowing Policy for
Misconduct and Corruption” to support and create fairness for suppliers. Suppliers can also directly contact either
the procurement department or the internal audit department, which can coordinate with related departments to
respond to them on various issues.

In addition, the Company also promotes the development of products and services with business partners with their
expertise. Until now, the Company has collaborated with many business alliances to explore new business
opportunities in pursuit of mutual and sustainable growth.

In 2022, the Company checked with its suppliers regarding risks related to human rights by using a checklist of the
Human Rights Due Diligence (HRDD) and selected 5 local suppliers considered critical. It was found that all
suppliers had performed positively in the area of human rights.

Please see more information on “Supplier Charter” on the website: https://www.thaicom.net/wp-
content/uploads/2019/07/20160822-thcom-supplier-charter-en.pdf
3.2.2.5 TAX Management
Thaicom has announced a tax policy to be a framework for tax in accordance with the laws and regulations. The
Company discloses information with relevant reporting requirements and standards to acknowledge stakeholders.
The tax policy is applied to the group companies including overseas branch offices to strictly adhere to the
principles of the tax policy. The accounting department is responsible for regularly reviewing and updating this
policy.
Effective Tax Rate
In 2021 and 2022, the company reported a profit (loss) before income tax expense at Baht 232 million and Baht
198 million while income tax expenses were Baht 88 million and Baht 156 million, respectively.
The Effective Tax Rates of the company* for 2021 and 2022 were 38% and 79%, respectively. Compared with
Thailand’s Corporate Income Tax Rate of 20%.
The differences between the Effective Tax Rates and Corporate Income Tax Rate were described below:
• In 2021, the difference resulted from the expense of the effect of different tax rates in foreign jurisdictions,
the share of profit (loss) of investment in joint ventures, the effect of income recognized in different periods

Part 1 Page 56