Thai Cold Rolled Steel Sheet Public Company Limited 99 ANNUAL REPORT 2022 2022 2021 Trade payables - related parties (Note 12) Marubeni-Itochu Steel Inc. 674,421 414,898 JFE Shoji Corporation 155,393 13,457 Prachuap Port Company Limited 2,976 3,915 SVL Corporation Limited 990 570 Total trade payables - related parties 833,780 432,840 Other payables - related parties (Note 12) West Coast Engineering Company Limited 18,904 17,359 JFE Shoji (Thailand) Co., Ltd. 2,119 2,474 JFE Steel Corporation 1,326 1,495 JFE Shoji Corporation 1,008 3,326 SVL Corporation Limited 236 299 Central Metals (Thailand) Company Limited 209 253 Sahaviriya Steel Industries Public Company Limited 179 182 Others 249 1,186 Total other payables - related parties 24,230 26,574 Total trade and other payables - related parties 858,010 459,414 Directors and management’s benefits During the year ended 31 December 2022, the Company had employee benefit expense payable to their directors and management totaling Baht 10.7 million (2021: Baht 11.3 million). 7. Cash and cash equivalents (Unit: Thousand Baht) 2022 2021 Cash 45 49 Bank deposits 61,132 135,036 Total 61,177 135,085 As at 31 December 2022, bank deposits in saving accounts and fixed deposits carried interests between 0.01 and 0.33 percent per annum (2021: between 0.01 and 0.13 percent per annum).
100 Thai Cold Rolled Steel Sheet Public Company Limited รายงานประจำำปีี 2565 8. Trade and other receivables (Unit: Thousand Baht) 2022 2021 Trade receivables - related parties (Note 6) Aged on the basis of due dates not yet due 87,520 296,925 Total trade receivables - related parties 87,520 296,925 Trade receivables - unrelated parties Aged on the basis of due dates not yet due 141,289 144,971 Total trade receivables - unrelated parties 141,289 144,971 Other receivables - related parties (Note 6) Other receivables 197 191 Total other receivables - related parties 197 191 Total trade and other receivables - net 229,006 442,087 The normal credit term is 10 days. 9. Inventories (Unit: Thousand Baht) Cost Reduce cost to net realisable value Inventories-net 2022 2021 2022 2021 2022 2021 Finished goods 1,610,107 1,462,622 (85,341) (39,347) 1,524,766 1,423,275 Work in process 53,021 307,266 (1,159) (4,973) 51,862 302,293 Raw materials 829,833 1,688,915 (20,911) (106,322) 808,922 1,582,593 Spare parts and factory supplies 271,634 256,638 - - 271,634 256,638 Inventory in transit 843,769 341,418 (981) (5,060) 842,788 336,358 Total 3,608,364 4,056,859 (108,392) (155,702) 3,499,972 3,901,157 During the current year, the Company reduced cost of inventories by Baht 108 million (2021: Baht 156 million), to reflect the net realisable value. This was included in cost of sales. In addition, the Company reversed the writedown of cost of inventories by Baht 156 million (2021: Baht 29 million) and reduced the amount of inventories recognised as cost of sales during the year. 10. Property, plant and equipment (Unit: Thousand Baht) 2022 2021 Net book value: Property, plant and equipment 2,924,103 3,125,547 Right-of-use assets (Note 13.1) 9,121 12,952 Total 2,933,224 3,138,499
Thai Cold Rolled Steel Sheet Public Company Limited 101 ANNUAL REPORT 2022 Movements of property, plant and equipment for the years ended 31 December 2022 and 2021 are summarised below. (Unit: Thousand Baht) Land and land improvement Building and leasehold improvement Machinery and equipment in production line Tools and equipment Vehicles Assets under construction and installation Total Cost: As at 1 January 2021 329,794 2,740,236 11,936,868 314,126 72,263 72,455 15,465,742 Additions - 3,661 66,250 10,230 3,319 73,871 157,331 Transfers in (out) - 1,932 65,891 169 - (67,992) - Transfer from right-of-use assets - - 138,622 - - - 138,622 Disposals - (102) (172,367) (10,381) (6,205) - (189,055) As at 31 December 2021 329,794 2,745,727 12,035,264 314,144 69,377 78,334 15,572,640 Additions 158 4,735 103,973 11,775 1,347 103,973 225,961 Transfers in (out) - 161 129,785 322 - (130,268) - Disposals - - (59,842) (8,328) (4,617) - (72,787) As at 31 December 2022 329,952 2,750,623 12,209,180 317,913 66,107 52,039 15,725,814 Accumulated depreciation: As at 1 January 2021 29,440 2,694,752 9,064,495 279,097 67,707 - 12,135,491 Depreciation charge for the year 1,964 5,848 436,210 14,846 2,952 - 461,820 Transfer from right-of-use assets - - 4,813 - - - 4,813 Disposals - (102) (165,878) (10,208) (6,200) - (182,388) As at 31 December 2021 31,404 2,700,498 9,339,640 283,735 64,459 - 12,419,736 Depreciation charge for the year 1,636 5,582 402,067 14,719 2,073 - 426,077 Disposals - - (59,387) (8,250) (4,617) - (72,254) As at 31 December 2022 33,040 2,706,080 9,682,320 290,204 61,915 - 12,773,559
102 Thai Cold Rolled Steel Sheet Public Company Limited รายงานประจำำปีี 2565 Land and land improvement Building and leasehold improvement Machinery and equipment in production line Tools and equipment Vehicles Assets under construction and installation Total Allowance for impairment loss: As at 1 January 2021 - - 32,133 136 5 - 32,274 Increase during the year - - 1,608 141 - - 1,749 Disposals - - (6,489) (172) (5) - (6,666) As at 31 December 2021 - - 27,252 105 - - 27,357 Increase during the year - - 1,202 104 - - 1,306 Disposals - - (455) (56) - - (511) As at 31 December 2022 - - 27,999 153 - - 28,152 Net book value As at 31 December 2021 298,390 45,229 2,668,372 30,304 4,918 78,334 3,125,547 As at 31 December 2022 296,912 44,543 2,498,861 27,556 4,192 52,039 2,924,103 Depreciation for the year 2021 (Baht 460.3 million included in manufacturing cost, and the balance in selling and administrative expenses) 461,820 2022 (Baht 418.0 million included in manufacturing cost, and the balance in selling and administrative expenses) 426,077 As at 31 December 2022, certain items of plant and equipment were fully depreciated but are still in use. The gross carrying amount before deducting accumulated depreciation and allowance for impairment loss of those assets amounted to approximately Baht 5,045 million (2021: Baht 4,931 million).
Thai Cold Rolled Steel Sheet Public Company Limited 103 ANNUAL REPORT 2022 11. Short-term loans from financial institutions (Unit: Thousand Baht) Balance as at 1 January 2022 1,655,000 Add: Additions during the year 22,362,000 Less: Repayments during the year (23,144,000) Balance as at 31 December 2022 873,000 As at 31 December 2022, the Company had short-term loans with local financial institutions amounting to Baht 873 million which bear interest at the floating rate by reference to bank rate of approximately 1.58 - 1.65 percent per annum (2021: 0.80 - 0.90 percent per annum). As at 31 December 2022, the Company had unutilised credit facilities totaling Baht 2,032 million and USD 10 million (2021: Baht 1,150 million and USD 10 million). 12. Trade and other payables (Unit: Thousand Baht) 2022 2021 Trade payables - unrelated parties 8,638 1,165 Trade payables - related parties (Note 6) 833,780 432,840 Other payables - unrelated parties 110,695 125,071 Other payables - related parties (Note 6) 24,230 26,574 Total 977,343 585,650 13. Leases The Company as a lessee The Company has lease contracts for various items of property, plant, and equipment used in its operations. Leases generally have lease terms between 2 - 4 years.
104 Thai Cold Rolled Steel Sheet Public Company Limited รายงานประจำำปีี 2565 13.1 Right-of-use assets Movement of right-of-use assets for the year ended 31 December 2022 and 2021 are summarised below: (Unit: Thousand Baht) Building and leasehold improvement Machinery and equipment in production line Motor vehicles Total 1 January 2021 13,033 138,039 4,887 155,959 Additions - - 4,926 4,926 Transfer to machinery and equipment in production line - (133,809) - (133,809) Depreciation for the year (6,516) (4,230) (3,378) (14,124) 31 December 2021 6,517 - 6,435 12,952 Additions - - 6,419 6,419 Depreciation for the year (6,517) - (3,733) (10,250) 31 December 2022 - - 9,121 9,121 13.2 Lease liabilities (Unit: Thousand Baht) 2022 2021 Lease payments 9,998 14,015 Less: Deferred interest expenses (582) (625) Total 9,416 13,390 Less: Portion due within one year (3,228) (9,531) Lease liabilities - net of current portion 6,188 3,859 Movements of the lease liability account during the years ended 31 December 2022 and 2021 are summarised below: (Unit: Thousand Baht) 2022 2021 Balance at beginning of year 13,390 56,840 Additions 6,419 4,926 Accretion of interest 471 1,146 Repayments (10,864) (49,522) Balance at end of year 9,416 13,390 A maturity analysis of lease payments is disclosed in Note 26.2 under the liquidity risk
Thai Cold Rolled Steel Sheet Public Company Limited 105 ANNUAL REPORT 2022 13.3 Expenses relating to leases that are recognised in profit or loss (Unit: Thousand Baht) 2022 2021 Depreciation expense of right-of-use assets 10,250 14,124 Interest expense on lease liabilities 471 1,146 Expense relating to leases of low-value assets 2,460 1,811 13.4 Others The Company had total cash outflows for leases for the year ended 31 December 2022 of Baht 13.3 million (2021: Baht51.3 million), including the cash outflow related to leases of low-value assets. 14. Other current liabilities (Unit: Thousand Baht) 2022 2021 Accrued expenses 44,601 44,941 Provision for loss on commitment of raw material purchase orders 14,527 5,911 Advance received for goods 4,963 4,963 Others 5,175 6,477 Total 69,266 62,292 15. Provision for long-term employee benefits Provision for long-term employee benefits, which represents compensation payable to employees after they retire and other long-term employee benefit, were as follows: (Unit: Thousand Baht) 2022 2021 Provision for long-term employee benefits at beginning of year 106,706 99,416 Included in profit or loss: Current service cost 6,128 6,035 Interest cost 2,179 2,027 Past service costs and gains or losses on settlement 5,159 - Actuarial loss 548 - Included in other comprehensive income: Actuarial (gain) loss arising from Financial assumption changes (20,245) - Experience adjustments 11,810 - Benefits paid during the year (8,080) (772) Provision for long-term employee benefits at end of year 104,205 106,706
106 Thai Cold Rolled Steel Sheet Public Company Limited รายงานประจำำปีี 2565 As at 31 December 2022, the provision for long-term employee benefits of the Company consisted of compensation payable to employees after they retire and other long-term employee benefit amounting to Baht 100.3 million and Baht 3.9 million respectively (2021: Baht 102.5 million and Baht 4.2 million respectively). The Company expects to pay Baht 5.6 million of long-term employee benefits during the next year (2021: Baht 6.2 million). As at 31 December 2022, the weighted average duration of the liabilities for long-term employee benefit is 18 years (2021: 19 years). Significant actuarial assumptions are summarised below: ((Unit: percent per annum) 2022 2021 Discount rate 3.8 2.0 Salary increase rate 6.7 6.6 Turnover rate 0 - 10 0 - 12 The result of sensitivity analysis for significant assumptions that affect the present value of the long-term employee benefit obligation as at 31 December 2022 and 2021 are summarised below: (Unit: Thousand Baht) 2022 2021 Increase Decrease Increase Decrease Discount rate (0.5% movement) (3,851) 4,093 (5,830) 6,305 Salary increase rate (0.5% movement) 3,441 (3,273) 6,690 (6,209) Turnover rate (0.5% movement) (8,408) 9,511 (7,185) 8,496 16. Share capital - preference shares The convertible preference shares can be converted to ordinary shares at the conversion rate of one preference share to one ordinary share. The preference share carries voting right at 1 preference share per 1 vote and shall have the same rights and privileges as the ordinary share. 17. Statutory reserve Pursuant to Section 116 of the Public Limited Companies Act B.E. 2535, the Company is required to set aside a statutory reserve at least 5 percent of its net profit after deducting accumulated deficit brought forward (if any), until the reserve reaches 10 percent of the registered capital. The statutory reserve is not available for dividend distribution. During the current year, the Company has not set aside the statutory reserve (2021: Baht 24.8 million).
Thai Cold Rolled Steel Sheet Public Company Limited 107 ANNUAL REPORT 2022 18. Finance cost (Unit: Thousand Baht) 2022 2021 Interest expenses on borrowings 10,582 6,508 Interest expenses on lease liabilities 471 1,146 Bank fees 426 417 Letter of guarantees fees 159 159 Total 11,638 8,230 19. Expenses by nature Significant expenses classified by nature are as follows: (Unit: Thousand Baht) 2022 2021 Raw materials and consumables used 16,138,397 14,594,917 Changes in inventories of finished goods and work in progress 106,760 (952,616) Depreciation and amortisation 438,340 477,370 Salaries and wages and other employee benefits 403,319 402,769 Utility expenses 272,823 263,310 Transportation of finished goods 290,372 284,928 20. Income tax Tax income for the year ended 31 December 2022 and 2021 are summarised below. (Unit: Thousand Baht) 2022 2021 Current income tax: Current income tax charge - 36,316 Adjustment in respect of income tax of previous year 3,076 - Deferred tax: Relating to origination and reversal of temporary differences (100,525) 27,463 Income tax expense (benefit) reported in profit or loss (97,449) 63,779
108 Thai Cold Rolled Steel Sheet Public Company Limited รายงานประจำำปีี 2565 The amounts of income tax relating to each component of other comprehensive income for the years ended 31 December 2022 and 2021 are as follows: (Unit: Thousand Baht) 2022 2021 Deferred tax on actuarial gain 1,687 - 1,687 - The reconciliation between accounting profit and income tax expense is shown below. (Unit: Thousand Baht) 2022 2021 Accounting profit (loss) before tax (589,966) 580,075 Applicable tax rate 20% 20% Accounting profit (loss) before tax multiplied by income tax rate (117,993) 116,015 Adjustment in respect of income tax of previous year 3,076 - Previously unrecognised tax losses that is used to reduce current tax expenses - (26,412) Effects of: Unused temporary differences and tax losses (4,245) (26,762) Non-deductible expenses 22,055 1,757 Additional expense deductions allowed (342) (819) Total 17,468 (25,824) Income tax expense (benefit) reported in profit or loss (97,449) 63,779
Thai Cold Rolled Steel Sheet Public Company Limited 109 ANNUAL REPORT 2022 The components of deferred tax assets and deferred tax liabilities are as follows: (Unit: Thousand Baht) Statement of financial position 2022 2021 Deferred tax assets Reduction cost of inventory to net realisable value 21,679 31,140 Property, plant and equipment (Impairment of asset) 5,630 5,471 Provision for loss on commitment of raw material purchase orders 2,905 1,182 Provision for long-term employee benefits 20,841 21,341 Lease 59 88 Unused tax loss 96,280 - Total 147,394 59,222 Deferred tax liabilities Accumulated depreciation - equipment 15,505 26,172 Total 15,505 26,172 Presentation in statement of financial position Deferred tax assets, net 131,889 33,050 21. Earnings per share Basic earnings (loss) per share is calculated by dividing profit (loss) for the period attributable to equity holders of the Company (excluding other comprehensive income) by the weighted average number of ordinary shares in issue during the year. The following table sets forth the computation of basic earnings (loss) per share. 2022 2021 Profit (loss) for the year (Thousand Baht) (492,517) 516,296 Weighted average number of ordinary shares (Thousand shares) 832,526 832,526 Earnings (loss) per share (Baht/share) (0.5916) 0.6202 Diluted earnings (loss) per share is calculated by dividing profit (loss) for the year attributable to equity holders of the Company (excluding other comprehensive income) by the weighted average number of ordinary shares in issue during the year plus the weighted average number of ordinary shares which would need to be issued to convert all dilutive potential ordinary shares into ordinary shares. The calculation assumes that such conversion took place either at the beginning of the year or on the date the potential ordinary shares were issued.
110 Thai Cold Rolled Steel Sheet Public Company Limited รายงานประจำำปีี 2565 Diluted earnings per share for the year ended 31 December 2021 is calculated by dividing profit for the year attributable to equity holders of the Company (excluding other comprehensive income) by the weighted average number of ordinary shares in issue during the year plus the weighted average number of ordinary shares which would need to be issued to convert all dilutive potential ordinary shares into ordinary shares as follow: Profit attributable to ordinary shareholders of the Company (Thousand Baht) 516,296 Number of ordinary shares outstanding (Thousand shares) 832,526 Effect of conversion of convertible preferred shares (Thousand shares) 237,774 Number of ordinary shares outstanding (Thousand shares) 1,070,300 Diluted earnings per share (Baht/Share) 0.4824 However, the incremental shares from assumed conversions are not included in calculating the diluted per share amounts for the loss attributable to ordinary shareholders for the year ended 31 December 2022 because the control number was negative (loss). 22. Segment information Operating segment information is reported in a manner consistent with the internal reports that are regularly reviewed by the chief operating decision maker in order to make decisions about the allocation of resources to the segment and assess its performance. The Company is principally engaged in the manufacture and distribution of cold rolled steel sheet which is only one reportable segment. Its operation is carried on exclusively in Thailand. Segment performance is measured by management based on operating profit or loss, on a basis consistent with that used to measure operating profit or loss and assets in the financial statements. As a result, all of the revenues, operating profits or loss and assets as reflected in these financial statements pertain exclusively to the aforementioned reportable operating segment and geographic area. Geographic information The Company operates in Thailand only. As a result, all the revenues and assets as reflected in these financial statements pertain exclusively to this geographical reportable segment. Major customers For the year 2022, the Company has revenue from 3 major customers in totaling amount of Baht 9,227 million (2021: Baht 8,880 million derived from 3 major customers). 23. Provident fund The Company and its employees have jointly established a provident fund in accordance with the Provident Fund Act B.E. 2530. Both employees and the Company contribute to the fund monthly at the rate of 5 - 7 percent of basic salary. The fund, which is managed by Kasikorn Asset Management Company Limited will be paid to employees upon termination in accordance with the fund rules. The contributions for the year 2022 amounting to approximately Baht 12.3 million (2021: Baht 11.5 million) were recognised as expenses.
Thai Cold Rolled Steel Sheet Public Company Limited 111 ANNUAL REPORT 2022 24. Commitments and contingent liabilities 24.1 Capital commitments As at 31 December 2022, the Company had capital commitments in relation to the acquisition of machinery and equipment approximately Baht 118.6 million, USD 0.8 million and JPY 198.5 million (2021: Baht 153.1 million, USD 0.2 million, JPY 127.5 million and EUR 0.1 million). 24.2 Raw materials and chemical purchase contracts As at 31 December 2022, the Company had contracted commitments in relation to the acquisition of raw materials approximately Baht 51.6 million and USD 29.7 million (2021: Baht 30.3 million and USD 35.5 million) and of Baht 19.3 million (2021: Baht 1.5 million) in relation to chemical purchases for production for a period of 3 years ending on 31 May 2025. 24.3 Other service contracts As at 31 December 2022, the Company had contracted commitments under service agreement of Baht 45.5 million and JPY 30.0 million (2021: Baht 43.5 million and JPY 30.0 million). 24.4 Guarantees As at 31 December 2022, the Company had bank guarantees issued by banks on behalf of the Company in respect of guarantee electricity use of Baht 25.4 million (2021: Baht 25.4 million) and guarantee customs use of Baht 1.0 million (2021: Baht 1.0 million). 25. Fair value hierachy As at 31 December 2022, the Company had the financial liabilities that were measured at fair value using level 2 of Baht 111 million (2021: Baht 7 million). 26. Financial instruments 26.1 Derivatives (Unit: Thousand Baht) 2022 2021 Derivative liabilities Derivatives liabilities not designated as hedging instruments Foreign exchange forward contracts 110,960 7,202 Total derivative liabilities 110,960 7,202 Derivatives not designated as hedging instruments The Company uses foreign exchange forward contracts to manage some of its transaction exposures. The contracts are entered into for periods consistent with foreign currency exposure of the underlying transactions, generally from one to 12 months.
112 Thai Cold Rolled Steel Sheet Public Company Limited รายงานประจำำปีี 2565 26.2 Financial risk management objectives and policies The Company’s financial instruments principally comprise cash and cash equivalents, trade accounts receivable, short-term loans and derivative financial instruments. The financial risks associated with these financial instruments and how they are managed is described below. Credit risk The Company is exposed to credit risk primarily with respect to deposits with banks and financial institutions, trade accounts receivable and other financial instruments. Except for derivative financial instruments, the maximum exposure to credit risk is limited to the carrying amounts as stated in the statement of financial position. The Company’s maximum exposure relating to derivative financial instruments is noted in the liquidity risk topic. Trade receivables The Company manages the risk by adopting appropriate credit control policies and procedures and therefore does not expect to incur material financial losses. Outstanding trade receivables are regularly monitored. An impairment analysis is performed at each reporting date to measure expected credit losses. The provision rates are based on days past due for groupings of various customer segments with similar credit risks. The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. Financial instruments and cash deposits The Company manages the credit risk from balances with banks and financial institutions by making investments only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through a counterparty’s potential failure to make payments. The credit risk on debt instruments and derivatives is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. Market risk The Company’s market risk comprises foreign currency risk, interest rate risk and commodity price risk. The Company enters into foreign exchange forward contracts to manage its risk exposure of the foreign currency risk arising on the import of goods.
Thai Cold Rolled Steel Sheet Public Company Limited 113 ANNUAL REPORT 2022 Foreign currency risk The Company’s exposure to foreign currency risk relates primarily to its goods purchasing transactions that are denominated in foreign currencies. The Company seeks to reduce this risk by entering into forward exchange contracts when it considers appropriate. Generally, the foreign exchange forward contracts mature within one year. As at 31 December 2022 and 2021, the balances of financial assets and liabilities denominated in foreign currencies are summarised below. Foreign currency Financial assets Financial liabilities Average exchange rate 2022 2021 2022 2021 2022 2021 (Million) (Million) (Million) (Million) (Baht per 1 foreign currency unit) US dollar 0.7 0.2 24.2 12.9 34.7335 33.4199 Japanese yen - - 9.6 19.7 0.2645 0.2944 As at 31 December 2022 and 2021, foreign exchange contracts outstanding are summarised below. 2022 Contractual exchange rate Contractual Foreign currency Bought amount Sold amount Bought Sold maturity date (Million) (Million) (Baht per 1 foreign currency unit) US dollar 104.4 - 34.61 - 38.11 - 13 January 2023 - 30 June 2023 Japanese yen 3.8 - 26.45 - 31 January 2023 2021 Contractual exchange rate Contractual Foreign currency Bought amount Sold amount Bought Sold maturity date (Million) (Million) (Baht per 1 foreign currency unit) US dollar 63.3 - 32.63 - 33.74 - 31 January 2022 - 28 April 2022
114 Thai Cold Rolled Steel Sheet Public Company Limited รายงานประจำำปีี 2565 Interest rate risk The Company’s exposure to interest rate risk relates primarily to its cash at banks, interest bearing short-term loans and lease liabilities. Most of the Company’s financial assets and liabilities bear floating interest rates or fixed interest rates which are close to the market rate. As at 31 December 2022 and 2021, significant financial assets and liabilities classified by type of interest rate are summarised in the table below, with those financial assets and liabilities that carry fixed interest rates further classified based on the maturity date, or the repricing date if this occurs before the maturity date. (Unit: Million Baht) 2022 Fixed interest rates Floating interest rate Non- interest bearing Total Effective interest Within 1 year 1-5 years rate (% per annum) Financial assets Cash and cash equivalents - - 61.2 - 61.2 0.01 - 0.33 Trade and other receivables - - - 229.0 229.0 - Financial liabilities Short-term loans from financial institutions - - 873.0 - 873.0 1.58 - 1.65 Trade and other payables - - - 977.3 977.3 - Lease liabilities 3.2 6.2 - - 9.4 2.99 - 14.60 (Unit: Million Baht) 2021 Fixed interest rates Floating interest rate Noninterest bearing Total Effective interest rate Within 1 year 1-5 years (% per annum) Financial assets Cash and cash equivalents - - 135.1 - 135.1 0.01 - 0.13 Trade and other receivables - - - 442.1 442.1 - Financial liabilities Short-term loans from financial institutions - - 1,655.0 - 1,655.0 0.80 - 0.90 Trade and other payables - - - 585.6 585.6 - Lease liabilities 9.5 3.9 - - 13.4 3.00 - 14.60
Thai Cold Rolled Steel Sheet Public Company Limited 115 ANNUAL REPORT 2022 Commodity price risk The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing purchase and manufacture of cold rolled steel sheet and therefore require a continuous supply of hot rolled coil. The Company is exposed to changes in the price of hot rolled coil on its forecast hot rolled coil purchases. The Company’s Board of Directors has developed and enacted a risk management strategy for commodity price risk and its mitigation. The Company hedges the purchase price by setting the trading price in advance and adjust in accordance with the world market price on quarterly basis. Liquidity risk The Company monitors the risk of a shortage of liquidity through the use of short-term loans from financial institutions and lease contracts. Approximately 94.78% of the Company’s debt will mature in less than one year at 31 December 2022 (2021: 95.43%) based on the carrying value of borrowings reflected in the financial statements. The Company has assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and debt maturing within 12 months can be rolled over with existing lenders. The table below summarises the maturity profile of the Company’s non-derivative financial liabilities and derivative financial instruments as at 31 December 2022 and 2021 based on contractual undiscounted cash flows: (Unit: Thousand Baht) As at 31 December 2022 Less than 1 year 1 to 5years Total Non-derivatives Short-term loans from financial institutions 873,000 - 873,000 Trade and other payables 977,343 - 977,343 Lease liabilities 3,228 6,188 9,416 Total non-derivatives 1,853,571 6,188 1,859,759 Derivatives Derivative liabilities: net settled 110,960 - 110,960 Total derivatives 110,960 - 110,960
116 Thai Cold Rolled Steel Sheet Public Company Limited รายงานประจำำปีี 2565 (Unit: Thousand Baht) As at 31 December 2021 Less than 1 year 1 to 5 years Total Non-derivatives Short-term loans from financial institutions 1,655,000 - 1,655,000 Trade and other payables 585,650 - 585,650 Lease liabilities 9,531 3,859 13,390 Total non-derivatives 2,250,181 3,859 2,254,040 Derivatives Derivative liabilities: net settled 7,202 - 7,202 Total derivatives 7,202 - 7,202 26.3 Fair values of financial instruments Since the majority of the Company’s financial instruments are short-term in nature or carrying interest at rates close to the market interest rates, their fair value is not expected to be materially different from the amounts presented in the statement of financial position. 27. Capital management The primary objective of the Company’s capital management is to ensure that it has appropriate capital structure in order to support its business and maximise shareholder value. As at 31 December 2022, the Company’s debtto-equity ratio was 0.4:1 (2021: 0.5:1). 28. Approval of financial statements These financial statements were authorised for issue by the Company’s director on 17 February 2023.
บรþษัท เหล็กแผนรÿดเย็นไทย จำกัด (มหาชน) Thai Cold Rolled Streel Sheet Public Company Limited สำนักงานใหญ : 28/1 อาคารประภาวþทยชั้น 5 ถนนสุรศักดิ์ แขวงสีลม เขตบางรัก กรุงเทพฯ 10500 โทร (02) 630 0300 แฟกซ (02) 630 0320-2 โรงงาน : 111 หมูที่ 4 ถนนบานกลางนา-ยายพลอย ตำบลแมรำพึง อำเภอบางสะพาน จังหวัดประจวบคีรÿขันธ 77140 โทร (032) 510 699 แฟกซ (032) 510 692 www.tcrss.com Head Office : 28/1 Prapawit Building 5th Floor, Surasak Road, Silom, Bangrak, Bangkok10500 Tel. (02) 630 0300, Fax (02) 630 0320-2 Factory :111 Moo 4 Ban Klang Na-Yaiploy Road, Maeramphueng Sub-district, Bangsaphan District, Prachuapkhirikhan 77140 Tel. (032) 510 699, Fax (032) 510 692