Page 143 - TYCONS - ANNUAL REPORT 2022
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Tycoons Worldwide Group (Thailand) Plc.
28. Financial instruments
28.1 Derivatives
(Unit: Thousand Baht)
Consolidated/Separate
financial statements
2022 2021
Derivative assets
Derivative assets not designated as hedging
instruments
Foreign exchange forward contracts - 12,053
Total derivative assets - 12,053
Derivative liabilities
Derivative assets not designated as hedging
instruments
Foreign exchange forward contracts 60,513 1,696
Total derivative liabilities 60,513 1,696
Derivatives not designated as hedging instruments
The Company uses foreign exchange forward contracts to manage some of its transaction
exposures. The contracts are entered into for periods consistent with foreign currency
exposure of the underlying transactions, generally 6 months.
28.2 Financial risk management objectives and policies
The Group’s financial instruments principally comprise cash and cash equivalents, trade
accounts receivable, investments, short-term and long-term loans. The financial risks
associated with these financial instruments and how they are managed is described below.
Credit risk
The Group is exposed to credit risk primarily with respect to loan, deposits with banks and
financial institutions and other financial instruments. The maximum exposure to credit risk
is limited to the carrying amounts as stated in the statement of financial position. The
Company’s maximum exposure relating to derivatives is noted in the liquidity risk topic.
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