Frontken Berhad Annual Report 2019

116 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2019 29. DIVIDENDS The Group/The Company 2019 2018 RM RM First interim single-tier dividend of 0.7 sen per ordinary share in respect of the financial year ended 31 December 2018, paid on 21 December 2018 - 7,335,779 Second interim single-tier dividend of 0.8 sen per ordinary share in respect of the financial year ended 31 December 2018, paid on 25 March 2019 8,383,748 - First interim single-tier dividend of 1.0 sen per ordinary share in respect of the current financial year, paid on 27 September 2019 10,479,685 - 18,863,433 7,335,779 On 21 February 2020, the Company declared and approved a second interim single-tier dividend of 1.5 sen per ordinary share on 1,047,968,530 ordinary shares, payable on 13 April 2020, in respect of the financial year ended 31 December 2019 amounting to RM15,719,528. The financial statements for the current financial year do not reflect this interim dividend. Such dividend will be accounted for in the shareholders’ equity as an appropriation of retained earnings in the financial year ending 31 December 2020. 30. FINANCIAL INSTRUMENTS The Group’s activities are exposed to a variety of market risk (including foreign currency risk, interest rate risk and equity price risk), credit risk and liquidity risk. The Group’s overall financial risk management policy focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance. (a) Financial Risk Management Policies The Group’s policies in respect of the major areas of treasury activity are as follows:- Market Risk (i) Foreign currency risk The Group is exposed to foreign currency risk on transactions and balances that are denominated in currencies other than the respective functional currencies of entities within the Group. The currencies giving rise to this risk are primarily United States Dollar, Singapore Dollar, New Taiwan Dollar and Philippine Peso. Foreign currency risk is monitored closely on an ongoing basis to ensure that the net exposure is at an acceptable level. The Group also holds cash and cash equivalents denominated in foreign currencies for working capital purposes. Notes To The Financial Statements (cont’d)