Ratchaburi Electricity Generating Holding PCL.
203
Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
Notes to the financial statements
82
Foreign currency risk
At 31 December, the Group and the Company were exposed to foreign currency risk of significant
transactions as follows:
Consolidated
financial statements
Separate
financial statements
2013
2012
2013
2012
(in thousand Baht)
United States Dollars
Short-term loans to related parties
-
100,278
-
100,278
Long-term loans to related parties
-
-
1,172,862
1,093,943
Australia Dollar
Long-term loans from related parties
1,186,178
1,358,280
-
-
Singapore Dollar
Short-term loans from financial-
Institutions
6,724,215
-
-
-
Japan Yen
Debentures
4,639,038
5,291,570
-
-
Gross balance sheet exposure
12,549,431
6,750,128
1,172,862
1,194,221
Credit risk
Credit risk is the potential financial loss resulting from the failure of a customer or counterparty to
settle its financial and contractual obligations to the Group as and when they fall due. The Group has
concentrations of credit risk since most of its revenues are contracted under long-term agreements with
a small number of parties. However counterparties are generally government authorities and large
public or private corporations and the risk perceived is low.
Liquidity risk
The Group monitors its liquidity risk and maintains a level of cash and cash equivalents deemed
adequate by management to finance the Group’s operations and to mitigate the effects of fluctuations
in cash flows.
Determination of fair values
A number of the Group’s accounting policies and disclosures require the determination of fair value,
for both financial and non-financial assets and liabilities. The fair value is the amount for which an
asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s
length transaction. Fair values have been determined for measurement and/or disclosure purposes
based on the following methods. When applicable, further information about the assumptions made in
determining fair values is disclosed in the notes specific to that asset or liability.
The fair value of trade and other short-term receivables is taken to approximate the carrying value.
The fair value of investments in equity and debt securities, which are held to maturity and available for
sale, is determined by reference to their quoted bid price at the reporting date. The fair value of held-
to-maturity investments is determined for disclosure purposes only.
The fair value of non-derivative financial liabilities, which is determined for disclosure purposes, is
calculated based on the present value of future principal and interest cash flows, discounted at the
market rate of interest at the reporting date.
otes to the financial statements
Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
