Taking into account the loan agreements which exclude the loans whose repayments were more than 4 months overdue and the debtors who were being sued, THANI’s loans whose repayments were scheduled to be made were as follows: Debt Repayments Hire Purchase Agreements Finance Lease Agreements Total Within 1 year 19,327.82 242.89 19,570.71 1-up to 2 years 15,073.99 179.82 15,253.81 2-up to 3 years 10,394.71 100.70 10,495.41 Over 3 years 7,347.81 60.67 7,408.48 Total 52,144.33 584.08 52,728.41 (Unit: Million Baht) As of 31 December 2021, THANI’s loans (including overdrafts and short-term loans) due to be repaid within one year amounted to 17,796.32 million baht while its long-term loans due to be repaid after one year but not more than two years amounted to 6,169.93 million baht. On the other hand, the installment payments due to be repaid by debtors within one year amounted to 19,570.71 million baht while the installment payments due to be repaid after one year but not more than two years amounted to 15,253.81 million baht. It could be seen that THANI’s sources of funds were adequate to repay the loans which were due within one year as part of the short-term loans would be repaid by the long-term loans. This was a capital structure strategy adopted by the company. In this connection, the short-term loans due to be repaid within one year consisted of overdrafts, loans in the form of promissory notes issued by financial institutions and third parties as well as long-term debts due for repayment within one year. THANI recognized the importance of liquidity. As a result, it took out long-terms loans which carried a fixed interest rate as a new source of funds, ensuring that it was in line with the repayments of the debtors. The arrangement also helped reduce interest risk and mitigate funding mismatch. In this connection, THANI continued to closely monitor the risk management in a careful manner. Lending THANI’s lending policy placed emphasis on the high quality of customers. Most of its customers were members of the general public. In considering the hire purchase loans for customers, THANI took into account their repayment ability and their guarantor’s creditworthiness. Factors including the stability of their income and occupation, as well as the location of their residence or workplace were also taken into consideration. In particular, their personal history would be checked in detail. Moreover, an officer would be assigned to carefully check each procedure related to application approval. Lending Money through Parties Related to Executives or Major Shareholders Currently, THANI had no loans which were given through executives, major shareholders or related parties. Investment THANI invested in Kamrai Permpoon Open-ended Fund (KPLUS). The objective was to make a long-term investment. The investment was made in 1993 at the cost of 300,000 baht. However, as of 20 May 2021, THANI has divested such investment. 56-1 One Report / Annual Report 2021 Thanachart Capital Publ ic Company Limited 31
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