PTT Global Chemical Public Company Limited and its Subsidiaries For the year ended 31 December 2023 PTT Global Chemical Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2023 99 Management has a 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 credit risk and the concentration of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position. However, the majority of the customers are on the long-term contracted commitment and parts of them are the Company’s shareholders which the company has consistently collected from them. For the customers who do not have the long-term contracted commitments, the Group monitors the risk on an ongoing basis and would do the business only with the credible customers by limiting the credit lines and requesting the guarantee on some cases. For the export, the credit of counterparty will be considered. The Group will demand a payment on a case to case basis and also has commercial credit insurance. Management anticipates no material losses from its debt collection. For trade receivables, the Group apply simplified approach in accordance with TFRS 9 to measure lifetime expected credit loss. The Group consider expected credit loss by using trade receivables provision table which estimate historical credit loss. The overdue circumstance adjusted to reflect current situation of receivables and the future economic conditions were taken into account. (b.1.2) Loans to related parties In assessing credit risk, the Company considers that most of subsidiaries and joint ventures in which have borrowings from the Company have the affordability that payments will be made under the agreements. However, the Company continually monitors the possibility of payments from counterparties. (b.1.3) Cash and cash equivalents The Group’s exposure to credit risk arising from cash and cash equivalents and derivative assets is limited because the counterparties are financial institutions which are rated at investment grade. The Group constantly assesses the financial status and stability of those financial institutions and companies to manage risks from deposit and investing. (b.1.4) Investment in debt securities The Group considers that all debt investments measured at amortised cost and FVOCI have low credit risk. Marketable bonds are considered to be an investment grade credit rating published by external credit rating agencies. The credit risk of other non-marketable debt instruments is considered to be low when the risk of default is low and the issuer has a strong capacity to meet its contractual cash flow obligations. (b.2) 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. The following table shows the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted and include contractual interest payments and exclude the impact of netting agreements. 343 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2023
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