Page 73 - Amata-one-report2020-en

BUSINESS OPERATION AND OPERATING RESULTS CORPORATE GOVERNANCE FINANCIAL STATEMENTS ENCLOSURES

Risk Management

Thus, the Company diversified investments in other countries and managed investment risks by closely monitoring
and evaluating risks. The Company also conducted research by analyzing and assessing marketing, economy, politics,
society, business environmental conditions and changes caused by technology before making investment decision.
The working groups which comprised of experts who have knowledge about domestic industries and expertise on

marketing, regulations, industrial competition, and business operations have been appointed to monitor risks, cooperate,
and request for support from local and central government of such country. In addition, in order to decide to invest in
any project, internal rate of return of new investment must be higher than the acceptable minimum return rate. Before
joint investment, due diligence to analyze status of the partner company, inspect and evaluate assets and liabilities of
such joint venture have been carefully conducted to ensure that value of assets was correctly and completely as per
stated in the accounting and they really do exist.

As businesses in Vietnam expanded rapidly and continually, so the Company supervised Amata VN Public Co., Ltd.
(Amata VN), a subsidiary, which invests and expands businesses continually via 6 subsidiaries in Vietnam. Sources
of investment are from Amata VN’s source of fund and loans from commercial banks. At present, its interest-bearing
debt-to-equity ratio is 1.26 times. The Company monitored liabilities levels and lending capability for investment

constantly.
With regard to business in Myanmar, the Company has joint venture with the Myanmar’s government entity,

where the representative of the Myanmar government is Department of Urban Planning and Development, Ministry of
Construction. By having the government entity as a joint venture, the Company’s political risks, risks from change in
laws and financial risks of the investment project can be lessened. The Myanmar government will be responsible for
investment on land management, while the Company is responsible for land development and to invite foreign investors
to invest in Myanmar. Thus, the Company can decrease risk from acquisition of land for operations which is the main
raw material of main revenue, i.e., revenue from real estate and from utilities rendering services.

The Company carefully managed risks regarding change in laws and policies of the countries that it has invested
in. The Company has appointed the specific relevant units and personnel who have keen expertise in such matters
to monitor the change in laws, trade regulations, accounting standards, international agreements, including tendency
of law, so it will have well informed, precise, clear and up-to-date information for planning suitable strategies. The

Company also provided knowledge on laws relevant to business operations to its personnel and supervised them to
strictly comply with the laws.

Amata Corporation Public Company Limited 73