Page 471 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

Central Retail Corporation Public Company Limited and its Subsidiaries
Notes to the financial statements
For the year ended 31 December 2021

(b.1.1) Trade receivables
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. However, management also considers the factors that may influence the credit risk of
its customer base, including the default risk associated with the industry and country in which
customers operate. Detail of concentration of revenue are included in note 26.

The risk management committee has established a credit policy under which each new customer
is analysed individually for creditworthiness before the Group’s commercial terms and
conditions and credit limits are offered.

The Group limits its exposure to credit risk from trade receivables by establishing a payment
period. Outstanding trade receivables are regularly monitored by the Group. An impairment
analysis is performed by the Group at each reporting date. The provision rates of expected credit
loss are based on days past due for individual trade receivables/groupings of various customer
segments with similar credit risks to reflect differences between economic conditions in the past,
current conditions and the Group’s view of economic conditions over the expected lives of the
receivables.

Information relevant to trade receivables is disclosed in note 9.

(b.1.2) Cash and cash equivalent and derivatives
The Group’s exposure to credit risk arising from cash and cash equivalents and derivative assets
is limited because the counterparties are banks and financial institutions which the Group
considers to have low credit risk.

(b.1.3) Guarantees
The Group’s policy is to provide financial guarantees only for subsidiaries’ liabilities. As at 31
December 2021, the Group has issued a guarantee to certain banks in respect of credit facilities
granted to subsidiaries (see note 7).

(b.2) Liquidity risk
The Group monitors its liquidity risk and maintains a level of cash and cash equivalents deemed
adequate by management to finance the Group’s operations and to mitigate the effects of
fluctuations in cash flows.

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