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Tycoons Worldwide Group (Thailand) Plc.

27. Financial instruments

27.1 Derivatives

(Unit: Thousand Baht)
Consolidated/Separate
financial statements

2024 2023
Derivative assets

Derivative assets not designated as hedging instruments
Foreign currency forward contracts 708 143
Total derivative assets 708 143

Derivative liabilities
Derivative assets not designated as hedging instruments
Foreign currency forward contracts 450 7,486

Total derivative liabilities 450 7,486

Derivatives not designated as hedging instruments

The Company uses foreign currency forward contracts to manage some of its transaction
exposures. The contracts are entered into for periods consistent with foreign currency
exposure of the underlying transactions, generally 6 months.

27.2 Financial risk management objectives and policies

The Group’s financial instruments principally comprise cash and cash equivalents, trade
accounts receivable, investments and short-term loans. The financial risks associated with

these financial instruments and how they are managed is described below.

Credit risk
The Group is exposed to credit risk primarily with respect to deposits with banks, trade and

other receivables and other financial instruments. The maximum exposure to credit risk is
limited to the carrying amounts as stated in the statement of financial position. The Group’s
maximum exposure relating to derivatives is noted in the liquidity risk topic.

Trade receivables

The Company manages the risk by adopting appropriate credit control policies and
procedures and therefore does not expect to incur material financial losses. Outstanding

trade receivables are regularly monitored and any shipments to major customers are
generally covered by letters of guarantee or other forms of credit insurance obtained from
reputable banks and other financial institutions. In addition, the Group does not have high
concentrations of credit risk since it has a large customer base.

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