Page 91 - Amata-one-report2020-en

BUSINESS OPERATION AND OPERATING RESULTS CORPORATE GOVERNANCE FINANCIAL STATEMENTS ENCLOSURES

sectors and financial institutes, trade war between various countries, epidemic diseases or country risk. Those risks
may impact to operation costs and financial management as well as reputation of the Company.

At present, the Company still has a large sum of loans and it has plans to expand its investment in various projects,
so the Company has to strictly consider about risk factors which may impact to its businesses. In this regard, financial
risks include adequacy of cash in hand to support financial liquidity; risks from inability to repay loans to the financial
institutes as per agreements which may impact to a change of loan agreement and an increase of interest rates;

risks to the Company’s predefined investment and sales plans; risks from investment in many countries, i.e. Vietnam,
Myanmar and Lao, as it may have risk from exchange rate loss; risk from reduction of credit rating (The Company’s
credit rating is A-Stable). Those risks directly impact to the Company as they can increase operation costs and they
may obstruct the financial support plans which make the operations unable to be suitably performed.

Risk Factor

Risks from financial crises led to fluctuation of exchange rate, an increase of interest rate of loans by the financial
institutes, and slowdown the investor’s investment decision.

Risks factors that impact the significant changes of the Company’s finance include impact from domestic economic
conditions, change of financial policy, trade war between countries, Covid-19 outbreak, financial institutes’ change
of policies which impacts to the Company’s operating costs, reduction of credit rating of the renowned institute, and
country risk. Apart from those risks, the Company also has other risks that require the Company to manage business
prudently and efficiently.

Risk Impact
Such risks impact to the Company, for instance, it makes revenues does not match sales plan and it also increases
finance costs and operating costs due to the increased interest rate of the financial institutes and fluctuation of exchange

rate. These factors may impact to the Company’s cash flow and financial liquidity and may make the Company unable
to repay loans to the financial institutes as per agreed or its credit rating may be decreased from the current rating
of A-Stable. Consequently, it may make the financial institute may not consider to provide credit to the Country and
make the Company lose investment opportunities.

Risk Management

The Company specified various measures to handle such financial crises, for instance, providing the financial
instruments suitable with each business for efficiency on management of working capital of business; managing liabilities,
both short-term and long-term, to keep them in suitable levels; specifying that the investment plan of each project must

generate profits and conform to the Company’s financial plans, fund raising must be as per the specified targets, as
well as inspecting and monitoring significant changes which may impact to the financial changes.
The Company always monitors its financial position and measures liability level and risk indicators applied are
adequacy of outstanding cash, and suitable interest coverage ratio. As of December 31, 2020, the Company’s debt

to equity ratio was 1.37 times, total loans from financial institutes of Baht 15,281 million. Ratio of long-term loan was
33.3 percent of total assets. Cash and cash equivalents, inclusive of short-terms investments were Baht 2,386 million.

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