Page 105 - Annual report eng 2019

Tycoons Worldwide Group (Thailand) Plc.

27. Financial instruments

27.1 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.
(Unit: Million Baht)
Financial statements in which equity method is applied/Separate financial statements
As at 31 December 2019
Fixed interest rates Floating Non-
Within interest interest
1 year 1 - 5 years rate bearing Total Effective interest rate
(%)
Financial assets
Cash and cash equivalent - - 382 42 424 Refer to Note 7
Trade and other receivables - - - 573 573 -
Restricted bank deposits 60 - - - 60 Refer to Note 11
60 - 382 615 1,057

Financial liabilities
Trade and other payables - - - 511 511 -
Short-term loans 1,502 - - - 1,502 Refer to Note 15
Long-term loans 32 20 46 - 98 Refer to Note 17
1,534 20 46 511 2,111

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