NOTES TO THE FINANCIAL STATEMENTS Cont’d 29. Financial instruments cont’d 29.6 Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and other prices that will affect the Group’s financial position or cash flows. 29.6.1 Currency risk The Group is exposed to foreign currency risk on sales, purchases, cash and cash equivalents, derivatives and borrowings that are denominated in a currency other than the respective functional currencies of Group entities. The currencies giving rise to this risk are primarily Australian Dollar (“AUD”), Renminbi (“RMB”), Singapore Dollar (“SGD”), U.S. Dollar (“USD”), Euro (“EUR”) and Great Britain Pound (“GBP”). Risk management objectives, policies and processes for managing the risk The Group actively monitors its exposure to foreign currency risk and uses forward exchange contracts and cross currency swaps to mitigate the risk when the need arises. Some of the forward exchange contracts and cross currency swaps have maturities of less than five years after the end of the reporting period. Where necessary, the forward exchange contracts are rolled over at maturity. PRESS METAL ALUMINIUM HOLDINGS BERHAD 291
RkJQdWJsaXNoZXIy NDgzMzc=