Page 167 - annual report AUCT 2025_Eng

Business Operation and Operating Results Corporate Governance Financial Statements Attachments
25.5 Service commitments
The Company has commitments to non-related companies and commercial banks under agreements
related to its arrangement of auctions covering a period from May 2006 to March 2028. The Company
is required to comply with significant terms in related agreements such as commission rates.
25.6 Capital commitments
As at 31 December 2025, the Company had capital commitments of approximately Baht 15 million
(2024: Baht 22 million).
26. Financial instruments
26.1 Financial risk management objectives and policies
The Company’s financial instruments-principally comprise cash and cash equivalents, trade receivables,
and other current financial assets. The financial risks associated with these financial instruments and
how they are managed is described below.
Credit risk
The Company is exposed to credit risk primarily with respect to trade receivables, deposits with
banks and financial institutions and other financial instruments. The maximum exposure to credit risk
is limited to the carrying amounts as stated in the statement of financial position.
Trade receivables
The Company has no significant concentrations since the receivables are diversified. The Company
has policies in place to ensure that services are provided to customers with an appropriate credit
history. Normally, trade receivables as at the end of reporting period are from the recent auction
transactions that occurred near the period end. These receivables have potentially fewer collection
issues because they settle payments upon the delivery of property sold at auction, and the credit
terms, are rather short i.e., between 3 days and 30 days.
An impairment analysis is performed at each reporting date to measure expected credit losses.
The provision rates are based on days past due for groupings of various customer segments with
similar credit risks. The Company classifies customer segments by customer type and rating. The
calculation reflects the probability-weighted outcome, the time value of money and reasonable and
supportable information that is available at the reporting date about past events, current conditions
and forecasts of future economic conditions.
บริิษััท สหการประมููล จำำากัด (มหาชน)
Union Auction Public Company Limited
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