Page 197 - Tata Steel One Report 2024-Eng-Ebook HY

Business Operation and Performance Driving Business Towards Sustainability Corporate Governance Policy Financial Statements Attachments
Tata Steel (Thailand) Public Company Limited
NTaotaesStoeetlh(eTChoainlasnoldid) aPtuebdliacnCdoSmeparnayteLiFminiatendcial Statements Notes to the Consolidated and Separate Financial Statements
For the year ended 31 March 2025
For the year ended 31 March 2025 4.17 Derivatives
Derivatives that do not qualify for hedge accounting is initially recognised at fair value. Changes in the fair value are included in other income/other expenses.
Fair value of derivatives is classified as a current or non-current following its remaining maturity.
5 Financial risk management
5 Financial risk management
5.1
Financial risk factors
5.1
Financial risk factors
5.1.1
The Group exposes to a variety of financial risk: market risk (including foreign exchange risk and interest rate risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance. The Group uses derivative financial instruments to hedge certain exposures.
Financial risk management is carried out by the Group Treasury Committee. The Group’s policy includes areas such as foreign exchange risk, interest rate risk, credit risk and liquidity risk. The framework parameters are approved by the Board of Directors and uses as the key communication and control tools for Treasury team.
Market risk
5.1.1 Marketrisk
a)) Foreign exchangerriiskk
The Group operates internationally and is exposed to foreign currency risk arising from US Dollar, Euro and Rupee India from trading transactions that are denominated in foreign currencies. The Group uses forward contracts, transacted with the financial institutions, to hedge their exposure to foreign currency risk of transactions in foreign currency.
The Group does not apply hedge accounting. The foreign currency forwards accounted for as held for trading, with gains (losses) recognised in profit or loss.
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