Page 106 - Annual Report English 2018
P. 106
Tycoons Worldwide Group (Thailand) Plc.
(Unit: Million Baht)
Consolidated/Separate financial statements
As at 31 December 2017
Level 1 Level 2 Level 3 Total
Assets measured at fair value
Derivatives
Foreign currency forward contracts - 0.4 - 0.4
Financial liabilities measured at fair value
Derivatives
Foreign currency forward contracts - 3.9 - 3.9
29. Financial instruments
29.1 Financial risk management
The Company’s financial instruments, as defined under Thai Accounting Standard No.
107 “Financial Instruments: Disclosure and Presentations”, principally comprise cash
and cash equivalents, trade and other receivables, restricted bank deposits, other
long-term investment, trade and other payables, short-term and long-term loans and
liabilities under finance lease agreements. The financial risks associated with these
financial instruments and how they are managed is described below.
Credit risk
The Company is exposed to credit risk primarily with respect to trade accounts
receivable. The Company manages the risk by adopting appropriate credit control
policies and procedures and therefore does not expect to incur material financial
losses. In addition, the Company does not have high concentration of credit risk since
it has a large customer base. The maximum exposure to credit risk is limited to the
carrying amounts of trade accounts receivable as stated in the statement of financial
position.
Interest rate risk
The Company’s exposure to interest rate risk relates primarily to its cash at banks,
short-term and long-term borrowings. Most of the Company’s financial assets and
liabilities bear floating interest rates or fixed interest rates which are close to the market
rate.
Significant financial assets and liabilities classified by type of interest rates are
summarised in the table below, with those financial assets and liabilities that carry fixed
interest rates further classified based on the maturity date, or the repricing date if this
occurs before the maturity date.
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