Annual Report 2006 - Thai Beverage Public Company Limited

Credit riskCredit risk is the potential financial loss resulting from the failure of a customer or a counterparty to settle its financial andcontractual obligations to the Group as and when they fall due.Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluationsare performed on all customers requiring credit over a certain amount. At the balance sheet date there were no significantconcentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financialasset in the balance sheet. However, due to the large number of parties comprising the Group’s customer base, managementdoes not anticipate material losses from its debt collection.Liquidity riskThe Group monitors its liquidity risk and maintains a level of cash and cash equivalents deemed adequate by management tofinance the Group’s operations and to mitigate the effects of fluctuations in cash flows.Fair valuesThe fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willingparties in an arm’s length transaction. In determining the fair value of its financial assets and liabilities, the Group takes intoaccount its current circumstances and the costs that would be incurred to exchange or settle the underlying financial instrument. 28. CommitmentsCapital commitments Contracted but not provided for BahtEuro (EUR)US Dollar (USD)Great Britain Pound (GBP)Singapore Dollar (SGD)Authorised but not contracted for BahtEuro (EUR)Non-cancellable operating lease commitmentsWithin one yearAfter one year but within five yearsAfter five yearsTotalConsolidated The Company2006 2005 2006 2005 (in million)620.82 1,330.20 11.00 132.698.59 7.44 - -0.06 - - -2.97 - - -0.11 - 0.11 -2,914.15 2,927.79 1,633.70 1,259.790.56 - - -Consolidated The Company2006 2005 2006 2005 (in million Baht)284.52 275.75 23.78 19.51284.46 214.12 37.77 31.1718.93 0.26 - -587.91 490.13 61.55 50.68161