Yinson Annual Report 2021

294 YINSON HOLDINGS BERHAD SECTION 07 : ACCOUNTABILITY NOTES TO THE FINANCIAL STATEMENTS (CONT’D) For the financial year ended 31 January 2021 42. Financial risk management objectives and policies (continued) (a) Market risk (continued) (ii) Foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange rates relates primarily to the Group’s operating activities and the Group’s net investments in foreign subsidiaries. The Group has transactional currency exposures arising from sales or purchases that are denominated in a currency other than the respective functional currencies of Group entities, primarily RM, USD, INR and Norwegian Krone ("NOK"). The foreign currency in which these transactions are denominated is mainly SGD, Euro and Ghanaian Cedi. The Group holds cash and cash equivalents denominated in foreign currencies for working capital purposes. The other financial instruments denominated in foreign currencies include financial assets at fair value through profit or loss, finance lease receivables, trade and other receivables, trade and other payables, loans and borrowings and lease liabilities. The Group is also exposed to currency translation risk arising from its net investment in foreign operations in Labuan, Singapore, Norway, Republic of the Marshall Islands, British Virgin Islands, Brazil, India and Netherlands. The Group’s investments in its foreign subsidiaries, joint ventures and associates are not hedged as the currency position in these investments are considered to be long-term in nature. The currency profile of monetary financial assets and financial liabilities are as follows: Denominated in currencies other than functional currencies Malaysian United States Denominated in functional Group Ringgit Dollar Others currencies Total RM million RM million RM million RM million RM million 2021 Other investments - - - 229 229 Receivables 6 26 23 553 608 Cash and bank balances 31 7 36 1,747 1,821 Borrowings - - - (6,106) (6,106) Lease liabilities - - (17) (10) (27) Payables (5) (4) (56) (808) (873) Derivatives - - - (225) (225) Put option liability - - - (181) (181) 32 29 (14) (4,801) (4,754) 2020 Other investments - - - 202 202 Receivables 13 25 29 433 500 Cash and bank balances 1 74 32 1,169 1,276 Borrowings - (41) - (3,789) (3,830) Lease liabilities - - (29) (3) (32) Payables (3) (1) (66) (375) (445) Derivatives - - - (156) (156) Put option liability - - - (412) (412) 11 57 (34) (2,931) (2,897)