Page 310

Separate financial statements Average Effective Interest rate

After 1 year but Within 1 year

(% per annum)

within 5 year

After 5 year

Total

(in thousand Baht)

2010 Current Bank overdrafts and loans payable - financial institutions

5.80

966,458

-

-

966,458

Non-current Loans payable - financial institutions

5.80

-

1,338,802

-

1,338,802

Loans payable - related party

4.75

-

9,700

-

9,700

966,458

1,348,502

-

2,314,960

-

333,655

Total

2009 Current Bank overdrafts and loans payable - financial institutions

6.02

333,655

-

Non-current Loans payable - financial institutions

6.02

-

1,794,404

Loans payable - related party

4.75

-

9,700

-

9,700

333,655

1,804,104

-

2,137,759

Total

1,794,404

Credit risk Credit risk is the potential financial loss resulting from the failure of a customer or a counter party to settle its financial and contractual obligations to the Group as and when they fall due. Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount. At the reporting date there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet. 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 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. In determining the fair value of its financial assets and liabilities, the Group takes into account its current circumstances and the costs that would be incurred to exchange or settle the underlying financial instrument. Fair values of financial assets and liabilities are not significant difference with the carrying values at 31 December 2010 and 2009.

310

AREEYA AWARD WINNING ANNUAL CHIC REPORT 2010

A 10  

A_2010 AREEYA PROPERTY PCL Annual Report 2010

A 10  

A_2010 AREEYA PROPERTY PCL Annual Report 2010

Advertisement