Page 61 - Anual report STi 2022_eng

from delayed installment payment or delayed contract performance, and the cash inflow of the Company Group in

renewal. Regarding the delay in the ongoing projects due to each period may fluctuate according to the amount of work on
the COVID-19 epidemic, the Company was also affected. hand, project's commissioning value, progress, or completion
The Company is well aware of this risk. Therefore, they have of work to collect service fees according to the agreed contract

found a way to manage the risk of financial liquidity by and continuity in obtaining new projects.
considering and evaluating the quality of customers before However, the Company Group has a guideline for risk
bidding or accepting work. When accepting work or bidding, management in such matters by diversifying the risk from
the Company will focus on strictly following the service providing consulting services in various types of projects, such
contract to ensure that the Company will be able to deliver as condominiums, mixed-use Development projects, office

quality work within the specified time frame to customers. buildings, shopping centers, educational institutions, and
In addition, the Company has prepared a business plan and multi-purpose buildings, infrastructure works, including
an annual budget plan, set revenue targets by type of service, historical conservation projects that require specialized
as well as the proportion of work from the public and private expertise in providing services and diversifying risks from

sectors so that the Company's management can analyze accepting works that cover both public and private sectors that
information and plan appropriately for accepting work or are more diverse, such as mergers and acquisitions AEC whose
participating in bidding for new projects. Overdue receivables main customers are government customers.
and pending collections are regularly followed up. Bank credit 2.2.3 Environmental and Social Risks

lines are regularly requested to provide adequate liquidity,
as well as to maintain current ratio and debt to equity ratio Nowadays, there is an emphasis and attention on
at appropriate levels. environmental care and the impact of construction on the
lives of people surrounding construction projects from many
Risk From Income Volatility
agencies from the government, NGO, or even the general
Each tender for each project or institution has different public who have been affected. This is considered the main
procedures, regulations, and periods. There are also other factor that will affect the completion time of construction work.
environmental factors that may affect investment in the For example, the government sector tends to increase the

construction of new real estate projects of each type, such as strictness of construction control by issuing new rules or
economic conditions, political situation, tourism business regulations, such as measures to control the working time
situation, the amount of outstanding housing in the market, the per day that are shortened, prohibiting working during holidays
situation of the epidemic of COVID-19, including changes in or time after sunset, or rigorous monitoring of environmental
government policies. Therefore, it may affect the construction impacts such as measuring dust, smoke, or noise caused by

business. In particular, the policies that have a significant construction. The Company Group has established guidelines
impact are policies on budgets for construction of various for preventing such risks as follows:
infrastructures which affects the construction consulting ● During the design process, the Company tries to push

services as well, etc. These factors result in the companies not designers both architects and engineers to design structural
being able to clearly know the chances of winning the bidding, systems or other components as prefabricated systems or
including the commencement period and the amount of use prefabricated parts as much as possible to reduce the
construction work in an industry that may change according construction period, which also reduces the impact on the
to the purpose of the employer and other environmental factors environment.

mentioned above, including the opportunity to obtain government
-related jobs due to government policies. Therefore, income,

Stonehenge Inter Public Company Limited 59