SiS Distribution (Thailand) Public Company Limited and its Subsidiary
Notes to financial statement For the years ended 31 December 2009 and 2008 Credit risk Credit risk is the risk arising from failure of customers or counterparties to meet their contractual obligations, which may eventually cause financial losses. The Group has determined a risk management policy through analysis of the customer and counterparties’ financial status, and also by defining the rules for credit approval and debt collection period. In addition, the Group has policy to take out risk insurance for uncollectibility of accounts receivable. 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. Fair value A number of Group’s accounting policies and disclosures require the determination of fair value, for both financial and non0financial 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 the measurement and/or disclosure purpose 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 is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. The fair value of trade receivables, trade payables and bank overdrafts and loans from financial institutions is taken to approximate the carrying value The fair value of forward exchange contracts is based on their listed market price, if available. If a listed market price is not available, then fair value is estimated by discounting the difference between the contractual forward price and the current forward price at the balance sheet date for the residual maturity of the contract using a risk-free interest rate.
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Commitments with non-related parties Consolidated financial statements 2009 Non-cancellable operating lease commitments Within one year After one year but within five years Total Other commitments Unutilised credits facilities Swap contracts Forward contracts Bank guarantee Total
Separate financial statements 2009 2008 (in million Baht)
25.59 9.11 34.70
25.59 9.11 34.70
42.08 29.50 71.58
2,042.67 48.60 80.89 15.37 2,187.53
2,042.67 48.60 80.89 15.37 2,187.53
2,199.36 199.97 134.54 7.01 2,540.88
Annual Report 2009 | SiS Distribution (Thailand) Pcl. 13