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is subject to interpretation. It establishes provisions
where appropriate on the basis of amounts expected
to be paid to the tax authorities.
Deferred income tax is recognised, using the
liability method, on temporary differences arising from
differences between the tax base of assets and liabilities
and their carrying amounts in the financial statements.
Deferred income tax is determined using tax rates (and
laws) that have been enacted or substantially enacted
by the end of the reporting period and are expected to
apply when the related deferred income tax asset is
realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised only
to the extent that it is probable that future taxable profit
will be available against which the temporary differences
can be utilised.
Deferred income tax assets and liabilities are
offset when there is a legally enforceable right to offset
current tax assets against current tax liabilities and
when the deferred income tax assets and liabilities
relate to income taxes levied by the same taxation
authority on either the same taxable entity or different
taxable entities where there is an intention to settle
the balances on a net basis.
2.20 Segment reporting
Operating segments are reported in a manner
consistent with the internal reporting provided to the
Group’s senior management.
3. Financial risk management
Financial risk factors
The Group’s activities expose it to a variety of financial
risks: market risk (including currency risk, fair value
interest rate risk and cash flow interest rate risk), credit
risk, liquidity risk and risk from investments and deposits.
The Group’s financial risk management programme
focuses on investment management under investment
policies and strategic asset allocation which is approved
by the SET’s Board of Governors and subsidiaries’ Board
of Director. The investment committees is strictly
established to oversee the investment in compliance
with the policies and strategic asset allocation defined.
The investment policy aims on maintaining stability of the
principal, while receiving the appropriate level of return.
3.1 Foreign exchange risk
The Group has no significant exposure to foreign
currency risk relates due to its accounts receivable
and accounts payable are mainly made in Thai Baht.
The Group does not use any derivative financial
instruments to hedge foreign currency exposure.
3.2 Interest rate risk
Interest rate risk arises from fluctuations in market
interest rates which may affect the Group’s operating
results and cash flow. The market interest rate at the time of
transaction will be considered when the borrowing
transaction is initiated. TheGroupdoes not have interest rate
derivative in order tomanage fluctuation of the interest rate.
3.3 Credit risk
The Group has no significant concentrations of
credit risk. The Group has appropriate policies in place
to ensure that Group sell products and provide services
to customers who have appropriate credit history.
3.4 Liquidity risk
The Group has no significant exposure to liquidity
risk as the Group has sufficient cash to support its
operations. The Group aims on maintaining flexibility
of funding by using internal capital of the Group.
3.5 Risk from investments and deposits
The Group is exposed to market risks as the
investor of financial instruments, and credit risk from
the issuer of financial instruments. The Group, therefore,
has a policy of diversifying its investments and deposits
to high credit financial institutions according to the
investment policy prescribed by the resolution of the
investment committee.