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EN_Tipco_Annual Report 2014

PAGE 046 / 047 Production & export of canned pine-apple, Concen-trate & other canned fruits Production & export of canned pine-apple, Concen-trate & other canned fruits TIPCO FOODS PUBLIC COMPANY LIMITED 1. Higher production costs 2. Exchange rate fluctuations Loss of the Com-pany’s significant data inemergency situations Various disasters including political disruption that may impact the computer system Disrupted business oper-ations due to damage of important equipments & data Action Plan - Establish a Disaster Recovery Site to safeguard data Significant 3. Technological Risks (T) 1. Rising interest rate trends 2. Higher demand for working capital due to higher raw material costs Declining capacity to gen-erate profit Action plan - Consider selling assets that earn lower rate of re-turn compared to the cost of funds - More effcient manage-ment of trade receivables - more efficient manage-ment of market demand & production to ensure opti-mal inventory holdings Exchange rate loss Action plan Closer monitoring of exchange rate situation and information, control risk by using exchange rate management tools, e.g., forward xchange rate contracts, buying/selling exchange rate warrants Significant 2. Financial Risks (F) Type of business Type of business Nature of risk Nature of risk Degree of risk Degree of risk Cause Cause Impact and responsive measures Impact and responsive measures 1. Economic uncer-tainties in various geograhical regions and countries which impact exchange rate movements 2. Domestic economy & political situation remains uncertain Significant


EN_Tipco_Annual Report 2014
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