Frontken Berhad Annual Report 2023

Frontken Corporation Berhad 200401012517 (651020-T) • ANNUAL REPORT 2023 139 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 27. DIVIDENDS The Group/The Company 2023 2022 RM RM Second interim single-tier dividend of 2.5 sen per ordinary share in respect of the financial year ended 31 December 2021, paid on 13 April 2022 - 39,273,785 First interim single-tier dividend of 1.6 sen per ordinary share in respect of the financial year ended 31 December 2022, paid on 20 September 2022 - 25,135,222 Second interim single-tier dividend of 2.6 sen per ordinary share in respect of the financial year ended 31 December 2022, paid on 13 July 2023 40,844,736 - 40,844,736 64,409,007 On 22 February 2024, the Company announced a first interim single-tier dividend of 2.2 sen per ordinary share in respect of the financial year ended 31 December 2023. 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 2024. 28. FINANCIAL INSTRUMENTS The activities of the Group and of the Company 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 overall financial risk management policy focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group and of the Company. (a) Financial Risk Management Policies The policies in respect of the major areas of treasury activity are as follows: Market Risk (i) Foreign currency risk The Group and the Company are 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, and others. Foreign currency risk is monitored closely on an ongoing basis to ensure that the net exposure is at an acceptable level. The Group holds cash and cash equivalents denominated in foreign currencies for working capital purposes.

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