Page 144 - TYCONS - ANNUAL REPORT 2022

Tycoons Worldwide Group (Thailand) Plc.

Trade receivables

The Company manages the risk by adopting appropriate credit control policies and
procedures and therefore does not expect to incur material financial losses. Outstanding

trade receivables are regularly monitored and any shipments to major customers are
generally covered by letters of guarantee or other forms of credit insurance obtained from
reputable banks and other financial institutions. In addition, the Company does not have

high concentrations of credit risk since it has a large customer base.

An impairment analysis is performed at each reporting date to measure expected credit
losses. The provision rates are based on days past due for groupings of various customer
segments with similar credit risks. The Company classifies customer segments by

customer type and coverage by letters of guarantee and other forms of credit insurance
are considered an integral part of trade receivables and taken into account in the

calculation of impairment. The calculation reflects the probability-weighted outcome, the
time value of money and reasonable and supportable information that is available at the
reporting date about past events, current conditions and forecasts of future economic

conditions.

Interest rate risk

The Group’s exposure to interest rate risk relates primarily to its cash at banks,
short-term and long-term borrowings. Most of the Company’s financial assets and liabilities

bear floating interest rates or fixed interest rates which are close to the market rate.

As at 31 December 2022 and 2021, significant financial assets and liabilities classified by
type of interest rate are summarised in the table below, with those financial assets and

liabilities that carry fixed interest rates further classified based on the maturity date, or the
repricing date if this occurs before the maturity date.

130