Page 221 - 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
Notes to the Consolidated and Separate Financial Statements
Tata Steel (Thailand) Public Company Limited
Notes to the Consolidated and Separate Financial Statements
For the year ended 31 March 2025
For the year ended 31 March 2025
A segment-level summary of the goodwill allocation is presented below:
Factory of The Siam Iron and Steel (2001) Million Baht
1,685
2025 Factory of
The Siam Construction Steel Million Baht
1,771
Factory of The Siam Iron and Steel (2001) Million Baht
1,685
2024 Factory of
Consolidated financial statements
Goodwill allocation
Total Million Baht
3,456
The Siam Construction Steel Million Baht
1,771
Total Million Baht
3,456
The recoverable amount of a CGU is determined based on value-in-use calculations. These calculations use pre-tax cash flow projections based on financial budgets approved by management covering a 5-year period. Cash flows beyond the 5-year period are extrapolated using the estimated growth rates stated below. The growth rate does not exceed the long-term average growth rate for the business in which the CGU operates.
The key assumptions used for value-in-use calculations are as follows:
Gross margin1 Growth rate2 Discount rate3
Goodwill from Factory of The Siam Iron and Steel (2001)
2.07%
1.25% 10.40%
Goodwill from Factory of The Siam Construction Steel
2.34%
1.25% 10.40%
Budgeted gross margin.
Weighted average growth rate used to extrapolate cash flows beyond the budget period. Pre-tax discount rate applied to the cash flow projections.
These assumptions have been used for the analysis of each CGU.
1 2 3
Management determined budgeted gross margin based on past performance and its expectations of market development. The weighted average growth rates used are consistent with the forecasts included in industry reports. The discount rates used are pre-tax and reflect specific risks relating to the relevant segments.
Key assumptions, having significant influence to sensitivity of discounted cash flows, were growth rate and discount rate.
In the segment of The Siam Iron and Steel (2001) factory, the recoverable amount is calculated based on value in use exceed carrying value by Baht 268.83 million. A reduction in gross growth rate of 0.69% or a raise in discount rate of 0.52% would remove the remaining headroom.
In the segment of The Siam Construction Steel factory, the recoverable amount calculated based on value in use exceed carrying value by Baht 1,423.45 million. A reduction in gross growth rate of 3.99% or a raise in discount rate of 2.73% would remove the remaining headroom.
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