Debt Restructuring Policy The Company and its subsidiaries put in place a debt restructuring policy, ensuring that it is transparent, fair, and verifiable. The purposes are not only to enable borrowers to continue operating their businesses and to repay as much as possible to the Company but also to minimize losses from the debt restructuring. Investments in Securities Policy on Investments in Securities The Company and its subsidiaries consider investment management as an important part of the Company’s business operations. This includes management of investments in temporary and long-term securities issued by public or private sectors. In this connection, its investment plans are subject to a review annually or anytime when there is a significant change in the money market or the capital market. In addition, it is required that the reports on measurement of investment returns and risk management are submitted to high level executives on a regular basis. The Company and its subsidiaries have also adopted a policy to invest in equity and debt instruments issued by businesses with strong potentials, relatively low risk, and opportunities to generate high returns. In this connection, the Company and its subsidiaries have established a work unit responsible for overseeing the investments in equity and debt instruments, ensuring compliance with the requirements, steps, and operational procedures imposed by the state agencies concerned. Investment Risk Management Investment risk management of the Company and its subsidiaries starts from considering and approving investments as well as monitoring and reviewing investment performance. In this connection, the risk management also covers the establishment of an investment policy. As regards the management of the market risk, the Company and its subsidiaries have established the thresholds for early warning risk signals and risk limits, the purpose of which is to keep the risks at an acceptable level. Allowances for Expected Credit Loss In considering the allowances for expected credit loss, the Company and its subsidiaries use the fair valuation method. The establishment of a fair value will depend on the characteristics of the financial instruments. In this connection, there are details related to the allocation of allowances for expected credit loss for the Company’s each type of investments. The details are given in the table under Section 3 on the financial statements. Investments in Subsidiaries and Associated Companies Investment Policy of Subsidiaries and Associated Companies The Company has adopted a policy to invest in subsidiaries and associated companies. The purpose is to support the core operations of Thanachart Group. Most of the subsidiaries and associated companies operate businesses related to financial services such as banking business, leasing, non-life and life insurance businesses, securities brokerage business, and asset management, among others. The Company has not capped the investments in the subsidiaries and associated companies. The level of investments depends on registered capital requirements and the amount of funds necessary to run the business. In this connection, the information related to equity stakes and investment amounts is given under Section 3 on the financial statements. Management Policy of Subsidiaries and Associated Companies The Company has adopted different management policies for its subsidiaries and associated companies, taking into consideration the nature of business and the investment strategies. While adopting a decentralized management approach, the Company participates in key policymaking. In this connection, it assigns its representatives or executives to sit on the board of directors. This will enable the Company to participate in policymaking, ensuring that their policies follow the main 52
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