- 63 - Before approving credit limit to counterparty, the Group has set the terms and analysis for both counterparty with or without collateral to determine the credit rating. The analysis includes financial position, financial performance, ability to pay off debts together with qualitative information such as the Company’s profile and major shareholders. The terms and credit limits are determined by the credit ratings as approved by the credit committee. The Group reviews the terms and credit limits with each counterparty on an annually basis. The Group does not have significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The Group has no significant concentrations of credit risks. 80% of the trade receivables has the best credit scoring under the credit rating system used by the Group. Other monitoring procedures are also in place to ensure that follow-up action is taken to recover overdue debts. Furthermore, the Group reviews the recoverable amount of each trade receivable on an individual basis at the end of the reporting period to ensure that adequate loss allowance is made for irrecoverable amounts. 38.4 Liquidity risk management Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for management of the Group’s short, medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. 38.4.1 Liquidity and interest risk tables The following tables detail the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows. To the extent that interest cash flows are floating rate, the undiscounted amount is derived from interest rate curves at the reporting date. Unit : Million Baht Consolidated financial statements As at December 31, 2021 Weighted average effective interest rate Less than 1 year 1 - 5 years More than 5 years Total Carrying amount Trade payables 28,671 - - 28,671 28,671 Other payables 3,239 - - 3,239 3,239 Amounts due to related parties 272 - - 272 272 Interest payables 195 - - 195 195 Accrued bonus expense 1,955 - - 1,955 1,955 Other current liabilities 49 - - 49 49 Long-term borrowings from a related party 3.42 - 12 19 31 31 Long-term borrowings from financial institutions 2.31 8,594 25,844 2,715 37,153 37,153 Debentures 3.28 2,000 12,000 10,000 24,000 24,000 Lease liabilities 86 143 5 234 234 Other non-current liabilities - 342 - 342 342 365 NOTES TO THE FINANCIAL STATEMENTS IRPC PUBLIC COMPANY LIMITED
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