In addition the notification of the securities and

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In addition, the notification of the Securities and Exchange Commission no. Kor Jor. 39/2548 regarding rules, criteria and procedures for disclosure of financial status and operating results of securities issuing companies (item no. 20) requires that such companies ensure the rotation of their auditors if such auditors have performed their du- ties for 5 consecutive accounting years. However the Company is not required to engage a new audit firm, which means the Company, may appoint any other auditor in the existing audit firm to replace the existing auditors. The 2016 Annual General Meeting of Shareholders approved the appointment of Mr. Khitsada Lerdwana, Certified Public Accountant (Thailand) No. 4958 and/or Mrs. Poonnard Paocharoen, Certified Public Accountant (Thailand) No. 5238 and/or Ms. Thipawan Nananuwat, Certified Public Accountant (Thailand) No. 3459 of EY Office Limited as the auditors of the Company. Any one of them is authorised to conduct the audit and render an opinion on the financial statements of the Company. Company Audit Fee Other audit fees Total Food Capitals Public Company Limited 2,250,000 - 2,250,000 Subsidiaries 2,870,000 - 2,870,000 Total 5,120,000 - 5,120,000 (Thai Baht) 90 Food Capitals Public Company Limited ANNUAL REPORT 2016
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Legal Dispute As of December 31, 2016, the Company and its subsidiaries (“the Company”) have a unresolved case form its regular business operations, an estimated total amount Baht 1 million which was less than 5% of its shareholders’ equity as the follow:- On 28 August 2015, one of a company as the plaintiff filed an arbitral dispute against the Company to claim for the outstanding service fee and interest in amount of Baht 999,312 and the penalty interest at the rate of 15% per annum of the outstanding service fee in amount of Baht 747,000 counting from the dispute date until the Company will pay the principal amount of Baht 999,312 to the plaintiff. The Company filed the statement of defense that such plaintiff failed to comply with the agreement and the case is currently under the arbitration process. 91 Food Capitals Public Company Limited ANNUAL REPORT 2016
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Risk Factors The Company is aware that there are always risk factors associated with the business operation. Therefore, the Company always cautiously assess any potential risk, which may adversely affect the business performance, and seek proper preventions and mitigate risk to an acceptable level. The business risk factors are as follow: Fluctuated World Economy The sluggish growth of Chinese economy has an impact on regional economic growth while the US economy as well as European economy picked up in gradual pace. The world economic growth trend adversely affected the business sentiment and con- fidence in private sectors domestically and inter - nationally. The sluggish business sentiment and confidence led to a slowdown in consumption and consequently suppress the revenue growth of the Company. Even though the Bank of Thailand reported a continu- ous growth of service sector, especially tourism in Thailand, which was one of the supporting factors for business growth, the Company managed the risk by diversifying its investment to other potential coun- tries in the region. The Company also controlled its debt to equity ratio at an appropriate level to ensure sufficient working capital for uncertainties.
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