SCI Annual Report 2015

SCI Electric Public Company Limited
SCI ELECTRIC PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES
(FORMERLY KNOW AS “SCI ELECTRIC MANUFACTURER COMPANY LIMITED”)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE TEAR ENDED 31 DECEMBER 2015
Manufacturer of
switch board
In million Baht
Consolidated financial statements
For the year ended 31 December 2014
Manufacture
and galvanized
service
Services
and others
Profit before income tax 417.41
Income tax (90.90)
Profit for the year 326.51
Total
Major customers
For the year 2015, the Group has the income from 3 major customers, equivalent to 55% of sales and service income (2014:
2 major customers, equivalent to 61% of sales and service income).
34. Financial Instruments
Financial risk management policies
The principal financial risks faced by the Group are interest rate risk and exchange rate risk. The Group borrows at
floating rates of interest to finance its operations. Certain sales, purchases and a portion of borrowings are denominated
in foreign currencies. In order to manage the risks arising from fluctuations in exchange rates and interest rates, the Group
makes use of derivative financial instruments.
Trading for speculative purposes is prohibited. All derivative transactions are subject to approval of the management
before execution.
Capital management
The primary objective of the Company’s capital management is to provide good returns to shareholders and
benefits to other stakeholders and to maintain an optimal capital structure in order to support asset management plan
and new investment opportunities which will create value and strengthen financial position for the whole group.
Determination of Fair values
The fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable,
willing parties in an arm’s length transaction.
The carrying amount of cash and cash equivalents, short-term investments, trade receivables, amounts due from
related parties, short-term loans and advances to related parties, trade creditors, accounts payable-property and equipment,
amounts due to related parties, and borrowings are assumed to approximate their fair value due to the short maturities
of these instruments.
Fair values of assets and interest-bearing liabilities, together with the carrying amount values shown in the balance sheets
as follows:
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