Notes to the Financial Statements PTT Global Chemical Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2023 98 Consolidated financial statements Separate financial statements 2023 2022 2023 2022 (in million Baht) Derivative liability in put option over non-controlling interest Balance as at 1 January - 470 - - Disposals/ settlements - (457) - - Effect from exchange differences on translating financial statements - (13) - - Balance as at 31 December - - - - (b) Financial risk management policies Risk management framework The Group is exposed to normal business risks from changes in market interest rates, currency exchange rates and commodity prices and from non-performance of contractual obligations by counterparties. The Group does not hold or issue derivative financial instruments for speculative or trading purposes. Risk management is integral to the whole business of the Group. The management continually monitors the Group’s risk management process to ensure that an appropriate balance between risk and control is achieved. Capital management The Company’s Board of Directors’ policy is to maintain a strong capital base so as to maintain the confidence of investors, creditors, partners and other stakeholders. In addition, the Board monitors the return on capital and the level of dividends to ensure business sustainability. (b.1) Credit risk Credit risk is risk of financial loss of the Group if a customer or a counterparty to the financial instrument fails to perform its contractual obligations, most of which is from trade receivables and investment in debt securities of the Group. (b.1.1) Trade accounts receivables Credit risk of the Group is influenced by individual characteristics of customers. However, management has to consider other factors that may affect the customer’s credit risk, including the risk of default in relation to industry and country of operations. 342
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