202
Annual Report
2013
Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
Notes to the financial statements
81
At the annual general meeting of the shareholders of the Company held on 26 March 2012, the
shareholders approved the appropriation of dividend of Baht 2.25 per share, totalling Baht 3,262.50
million, from the net profit of 2011 after deducting the interim dividends of Baht 1.10 per share,
totalling Baht 1,595 million, paid to shareholders in September 2011 from the net profit for the six-
month period ended 30 June 2011. The balance of dividend amounted to Baht 1,667.50 million which
was paid to shareholders in April 2012.
32 Financial instruments
Financial risk management policies
The Group is exposed to normal business risks from changes in market interest rates and currency
exchange rates and from non-performance of contractual obligations by counterparties. The Group
does not hold or issue derivative financial instruments for speculative or trading purposes.
Risk management is integral to the whole business of the Group. The Group has a system of controls
in place to create an acceptable balance between the cost of risks occurring and the cost of managing
the risks. The management continually monitors the Group’s risk management process to ensure that
an appropriate balance between risk and control is achieved.
Capital management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the business. The Board monitors the return on
capital, which the Group defines as result from operating activities divided by total shareholders’
equity, excluding non-controlling interests and also monitors the level of dividends to ordinary
shareholders.
Interest rate risk
Interest rate risk arises from the fluctuations in market interest rates, which may have negative effect
on current future operations of the Group. Management believes that exposure to interest rate risk is
minimal because the floating interest rate according to the condition in long-term loans agreement and
debenture (note 17) is included in the availability payment as specified in the Power Purchase
Agreement (note 5). Therefore, the Group does not enter into a hedging agreement to protect against
such risk.
The effective interest rates of loans to and loans from related parties at 31 December 2013 and 2012
and the periods in which those liabilities mature or re-price were disclosed in note 5.
The effective interest rates of interest-bearing liabilities at 31 December 2013 and 2012 and the
periods in which those liabilities mature or re-price were disclosed in note 17.
otes to the financial statements
Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
