Ratchaburi Electricity Generating Holding PCL.
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source of income. Analysis of financial impact from
foreign exchange fluctuation in foreign currencies
has been conducted to support the right decision
on hedging instruments selection in order to
maintain risks at the acceptable level.
2.3 Risk Related to Financial Liquidity
The Company ha s p l anned and
continuously adjusted capital sourcing plan as well
as cash management plan. The main objective is
to ensure that the Company always has sufficient
capital required in different project operations.
Reserves are allocated for new investment and
other business activities. Good relations with
Thai and international financial institutes are also
maintained to create new opportunities and seek
new funding sources.
3. Operational Risks
The Company’s Board of Directors and
Management consider operational riskmanagement
as one of the top priorities. Given the Company’s
increasing investment, it has closely monitored
the progress of business activities handled by
its subsidiaries and joint ventures. The Board of
Directors and the Management jointly considered
and appointed the Company’s representatives
to sit in the board of directors and management
of the companies and projects in which the
Company invested. Such appointment enabled
the Company to participate in formulating policy,
directing project development and monitoring
and regularly reporting project progress to the
Company’s Board of Directors.
3.1 Risk of Unexpected Dividend Received
from Subsidiaries
In preventing adverse impact on the
overall operations, the Company has closely
monitored and assessed subsidiaries’ performance
with emphasis on significant factors that may
affect income and profit which have impact on
dividend received from subsidiaries. Subsidiaries
are required to prepare annual plan that best
supports the Company’s goal and a contingency
plan for unexpected events that may affect
dividend received.
3.2 Risk of Unexpected Performance
of the Company and Its Subsidiaries
Close monitoring and assessment have
been implemented to enable the Company
and its subsidiaries and affiliates to achieve its
goals, including availability and efficiency of
machinery, regular maintenance, fuel efficiency
and emission control which must be within the
legal requirement limit. In addition, management
of risk related to operations and maintenance of
power plants that are commercially operated are
already in place. The plan includes budgeting for
the operations and maintenance. The Company
also made a long-term agreement for the
sourcing of power plant equipment in order to
maintain the confidence and readiness of the
power plants according to the agreement made
with EGAT without having to pay penalty and at
the same time receive full availability payment.
Expense control was ensured in order to maintain
profitability and increase the Company’s cash
flow.
4. Human Resource Risks
The Company realizes that employees are
the most important resources that drive the
Company towards success and, therefore, gives
high importance to the management of risks
related to human resource. The Company ensures
effective recruitment in order to secure qualified
employees, provides incentives to maintain
capable human resources, provides appropriate
and fair remunerations and benefits that are
within industry average range, develops people
capability, and regularly reviews operational
process and system to support the Company’s
future business expansion.
