Page 43 - PSTC - One Report 2023 (EN)

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Power Solution Technologies Public Company Limited
Management and Operational Risks
Project Management Risks and Power Plant Performance
Power plant management requires reliance on employees with expertise and specific knowledge. If the Company is unable to provide sufficient personnel to perform its duties, the Company may not be able to manage its power plants effectively. However, in preparations to start operating the power plants, the Company will select a sufficient number of qualified personnel to perform duties and provide training for employees in the department to have knowledge and ability to work interchangeably.
Compliance Risks
1. The company is licensed by the Department of Energy Business as an LPG trader in accordance with the requirements for becoming an oil trader under Article 7 in 2015 , with a registered capital of 50 million baht or more, a working capital of no less than 100 million baht and a depot facility to store legal reserves of 2% of the volume to be traded over a one-year period. In compliance with the Department’s new announcement, effective 1/1/2022, a trade volume of more than 50,000 tons per year is required.
2. In terms of actions taken to comply with the essence of the Personal Data Protection Act, which covers the collection, disclosure, processing and destruction of information, the exercising of the rights of data subjects and cases involving procedures for handling infringements of personal data, the Company plans to ensure that data collection is carried out in accordance with the Personal Data Protection Act.
Financial Risks
1) Risk of Liquidity of the Company:
Presently, operating expenses are on the rise, prompting the company to consider raising approximately 100 million baht in capital. This infusion of funds is earmarked for expanding investments in both private sector electricity sales and the construction of LNG stations. Anticipating ongoing capital needs to sustain construction and potentially a heightened demand after future sales, the company may encounter liquidity challenges in meeting short-term debt obligations.
Hence, prudent planning and meticulous management of investments are imperative. The company must also explore diverse financial instruments to secure capital from shareholders and investors. The management of working capital is pivotal for operational sustainability, and the company boasts an efficient debt management and collection system.