Notes To The Financial Statements 31 March 2024 (Cont’d) 144 ENRA GROUP BERHAD ANNUAL REPORT 2024 12. DERIVATIVE ASSETS/(LIABILITY) Contract/ Contract/ Notional Notional amount Assets amount Liability Group RM’000 RM’000 RM’000 RM’000 2024 Forward foreign currency contracts - - 2,677 (40) 2023 Forward foreign currency contracts 4,983 98 - - Company 2024 Forward foreign currency contracts - - 2,469 (37) 2023 Forward foreign currency contracts 2,375 41 - - (a) Derivatives are initially recognised at fair value on the date the derivative contracts are entered into and are subsequently remeasured to fair value with changes in fair value being recognised in profit or loss. (b) The Group and Company use forward foreign currency contracts to manage some of the foreign currency transaction exposure. These contracts are not designated as cash flow or fair value hedges and are entered into for period consistent with foreign currency transaction exposure and fair value changes exposure. The Group and Company do not apply hedge accounting. Forward foreign currency contracts represent selling and buying contracts are used to hedge the principal and interest of other borrowings of the Company denominated in Singapore Dollar and to hedge the Group’s receivable from a customer denominated in US Dollar for which the commitments existed at the reporting date. (c) During the financial year, the Group and the Company recognised a net loss of RM74,000 (2023: gain of RM98,000) and RM77,000 (2023: gain of RM41,000) respectively arising from the fair value changes in derivatives. The methods and assumptions applied in determining the fair values of derivatives are disclosed in Note 32(b)(v) to the financial statements.
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