Page 183 - Mono Technology Public Company Limited : Annual Report 2014 EN

Credit risk

The Company and its subsidiaries is exposed to credit risk primarily with respect to trade and other
receivables, and loans. The Company and its subsidiaries manages the risk by adopting appropriate

credit control policies and procedures and therefore does not expect to incur material financial losses.
However, the Company and its subsidiaries is exposed to concentrations of credit risk with respect to trade
receivables because it has a few major customers who are in the same industry. The maximum exposure
to credit risk is limited to the carrying amounts of trade and other receivables, and loans as stated in the

statement of financial position.

Interest rate risk
The Company and its subsidiaries exposure to interest rate risk relates primarily to its cash at banks, current

investments, loans, borrowings and financial lease liabilities. Most of the Company and its subsidiaries
financial assets and liabilities bear floating interest rates or fixed interest rates which are close to the
market rate.

29.2 Fair values of financial instruments

Since the majority of the Company and its subsidiaries financial instruments are short-term in nature or
bear floating interest rates, their fair value is not expected to be materially different from the amounts
presented in statement of financial position.

A fair value is the amount for which an asset can be exchanged or a liability settled between
knowledgeable, willing parties in an arms length transaction. The fair value is determined by reference to
the market price of the financial instruments or by using an appropriate valuation technique, depending
on the nature of the instrument.

30. Capital management

The primary objective of the Company and its subsidiaries capital management is to ensure that it

has appropriate capital structure in order to support its business and maximise shareholder value. As at
31 December 2014, the Company and its subsidiaries debt-to-equity ratio was 0.93:1 (2013: 0.09:1) and
the Companys was 0.07:1 (2013: 0.08:1).

31. Approval of financial statements

These financial statements were authorised for issue by the Companys Board of Directors on 25 February 2015.

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