Page 100 - BTSGroup ONE REPORT 2021/22_EN

98 l Introduction l Nature of Business l Organisation and Shareholding Structure l Business Review l Corporate Governance l Financial Statements l Other Information l

Risk from the COVID-19 Pandemic Financial Risk

The Covid-19 pandemic situation and government measures to control Liquidity Risk
the contagion, by requesting public cooperation to limit travel and gatherings, Liquidity risk relates to the Company’s capability to manage its cash flow,
have affected consumer confidence in using mass transit services, change in including servicing interest expenses, debt principal repayment and capital
consumer behaviour resulting in a decline in the tourism sector. In FY 2021/22, investment within a certain period. An increase in working capital or investment
affected from the spread of the Delta variant, the Core Network ridership requirement, or reduction in revenue may put a strain on the Company’s liquidity
decreased by 41% from the previous year. and render higher financial costs. In addition, main source of income of
the Company is from dividends from its subsidiaries and associated companies,
BTS Group has established a COVID-19 War Room to manage and monitor including BTSGIF, as such, if the financial performances of the subsidiaries,
the pandemic situation closely and effectively. The Company has prepared associated companies or BTSGIF fall short of their projections, the Company’s
a pandemic response plan that outlines health and safety measures for employees, liquidity and financial performance may be impacted.
partners and passengers, such as social distancing measures, temperature
checks, preparation of hand sanitising alcohol, mask wearing, and cleaning As of 31 March 2022, the Company had cash on hand of THB 4.1bn, other
and disinfecting inside trains and stations, etc. current financial assets of THB 1.0bn and will receive the cash THB 12.9bn
from the issuance of VGI right offerings, amounting to a total of THB 18.0bn.
Although, the Company is unable to predict when the COVID-19 pandemic The Company had available credit lines from commercial banks THB 25.5bn
situation will draw to a close, the Company expects that the situation would not compared to short-term debt obligations THB 37.6bn, long-term debt obligations
resume to normalcy, as new waves of outbreaks could prolong the pandemic during the next 8 months of approximately THB 1.8bn, and interest expenses
situation. Such events may negatively impact business operations, financial of THB 2.6bn, totalling THB 42bn. Therefore, the Company has its cash on
performance and future business opportunities of the Group. (More information hand, current financial assets and credit line to adequately manage the cash
can be found in Section 4.4 Management Discussion and Analysis in this report.) outflow in the next 8 months.

Given the current uncertainty, the Company expects the spread of COVID-19 On 6 May 2022, the Company issued Sustainability-Linked debentures amount
to ease when the government declares endemic along with the rising vaccination THB 11bn, therefore, as of 31 May 2022, the Company has short-term debt
rates. The Company believes that this scenario as well as an ample number of obligations of THB 22.9bn, decreasing THB 14.7bn. The Company has a low
individuals were acclimated to ‘New Normal’ behaviour will lessen the impact liquidity risk due to its cash on hand, current financial assets and credit line to
of COVID-19 pandemic. adequately manage the cash outflow in the next 18 months.