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13.53% of the company’s sale income according to consolidated financial statements. Major customers of the company are regular customers who have maintained contact and business with the company for a long time and have a good relationship. Maintaining good standards of goods and services quality for over 30 years, the company is confident that it will continue to gain trust of customers. However, the company has a policy to reduce risk of dependence on any particular customer in each market, by constantly seeking new customers in order to expand customer base and to create more business opportunities and development of new products. • Risk of dependence on revenue from Myanmar In 2012, the Group had revenue from sales of equipment to Myanmar of 595 million baht, decreasing by 55% from 1,323 million baht volume in 2011, due mainly to the change of procurement policy from using foreign currencies to Myanmar currency. The company considers that procurement according to this new policy has a risk of exchange rate uncertainty of Kyat, which is highly volatile. Therefore, the Group undertakes businesses carefully by focusing on projects under foreign currency deals only. However, the Group plans to seek a long-term solution to meet the changing procurement policy, and is studying the feasibility of setting a branch in Myanmar. In order to reduce dependence on revenue from Myanmar, the Group has a policy of market expansion into neighboring countries, such as Lao PDR, Vietnam, Cambodia and Malaysia. Moreover, the Group has a policy to undertake the business of power generation from renewable energy sources and the business of power plant construction, both in Myanmar and Thailand. In this regard, the Group gains the trust of Myanmar government and is thus assigned to conduct a feasibility study of wind power development project. So, the Group believes that its policy can reduce the risk of dependence on revenue from Myanmar. However, the Group has a policy to prevent risk of dependence on any particular customer, by expanding customer base in public and Gunkul Engineering Public Company Limited

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Gunkul 12  

GUNKUL_2012 GUNKUL ENGINEERING PCL Annual Report 2012

Gunkul 12  

GUNKUL_2012 GUNKUL ENGINEERING PCL Annual Report 2012

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