Page 36 - One report AUCT2024_Eng

Part 1
Business Operation and Operating Results
a fire occurring. The Company also prepared a plan in case an event beyond one’s control occurred by having fire insurance to support the unexpected risks. The amount that customers’ assets are insured is higher than the property valuation in order to ensure that the Company had prepared a measure to substantially handle the risk of fire.
1.2 Risk of Flooding
The Company has all-encompassing flood preventative measures because different locations were prepared above flood water levels to stock vehicles across the country. Other than convenience for property owners, the Company is able to use these locations for storing assets in the case that some locations are affected by floods in the future. At the head office, Safety Zone area is assigned in case of an emergency with continued development of the area, i.e., build a safety zone (“Safety Zone”), raise the floor to prevent flooding, install a large water pump, and improve a drainage, etc.
The Company has purchased insurance that covered properties, cars, motorcycles and furniture for headquarter sites as well as 43 other storage locations all across the country. The Company also prepared a process for flood preventative measures. This began by inspecting the availability of equipment, personnel and reporting the incidents to authorized person to direct the act. As a result, the Company concluded that the Company could manage the risk of flooding at a good level.
1.3 Risk from Properties Being Lost, Damaged and Stolen while under the Company’s
Possession
As most of the properties taken into auction process are cars or motorcycles delivered by the sellers or the financial institutions, so these properties cannot undergo the auction process right away because they have to wait until all conditions specified in the contracts agreed between the Company and such financial institutions have been fulfilled. The Company has to retain the confiscated properties pending for auction in the areas and under its care pursuant to the period of time specified by the law. The Company is also responsible for moving those vehicles to the auction venues. This could create a possible risk because the Company would be held liable for any damages or loss to any vehicles under its supervision.
The Company has taken measures against potential damages resulting from any damages to vehicles under the Company’s possession by installing surveillance cameras at storage sites, implementing strict access controls, hiring out-sourced 24-hour security guards at all storage location sites. In the case that damages occur due to an act of the security guards or their negligence, as stated in the contract, the security company is responsible to reimburse damages to the property and the Company. The Company also purchased insurance which covered the Company’s properties.
36
Annual Registration Statement / Annual Report 2024
(Form 56-1 One Report)