- 62 - Commodity derivative contracts The Group has a policy to enter into commodity derivative contracts to manage the commodity price risk associated with anticipated purchase transactions in next 24 months. The Group policy is to enter into crack spread swap contracts up to 50% of production quantity and enter into crude oil swap contracts up to 100%. The following tables detail the commodity derivative contracts outstanding at the end of the reporting period. Commodity derivative contracts are presented in the line ‘Derivative Liabilities’ within the statements of financial position. Consolidated and separate financial statements Quantity Carrying amount of derivative contracts As at December 31, 2021 2021 Million Barrels Million Baht Outstanding of commodity derivative contracts Crack Spread Swap Contracts 5.25 28 Total current derivative liabilities 28 Consolidated and separate financial statements Quantity Carrying amount of derivative contracts As at December 31, 2020 2020 Million Barrels Million Baht Outstanding of commodity derivative contracts Crack Spread Swap Contracts 2.40 90 Crude Oil Swap Contracts 6.35 (431) Total current derivative liabilities (341) 38.2.4 Other price risks The Group is exposed to equity price risks arising from equity investments. Equity investments in unlisted entities are held for strategic rather than trading purposes. Equity price sensitivity analysis The sensitivity analysis below have been determined based on the exposures to equity price risks at the reporting date. If equity prices had been 10% higher/lower: - Other comprehensive income for the year ended December 31, 2021 would increase/decrease by Baht 11 million (2020 : increase/decrease by Baht 12 million) as a result of the changes in fair value of the investments in listed shares. 38.3 Credit risk management Note 8 details the Group’s maximum exposure to credit risk and the measurement bases used to determine expected credit losses. In order to minimise credit risk, the Group has determined the policies and procedures to consider the appropriate credit limit for business, comparable to leading companies in the same business. The Group takes into account the risks that will cause bad debts to the Group by having the credit committee who is responsible for supervising the credit management for selling all type of products and services of the Group. 364 IRPC PUBLIC COMPANY LIMITED 56-1 ONE REPORT 2021
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