Press Metal Annual Report 2022

NOTES TO THE FINANCIAL STATEMENTS Cont’d 29. Financial instruments cont’d 29.6 Market risk cont’d 29.6.1 Currency risk cont’d Exposure to foreign currency risk cont’d Company 2022 2021 RM’000 RM’000 Denominated in USD Balances recognised in the statement of financial position Cash and cash equivalents 79,783 18,084 Loans and borrowings (979,412) (970,815) Net derivative liabilities - Commodity swaps and options (6,602) (104,501) (906,231) (1,057,232) Forecast transaction Net derivative assets - Cross currency swaps 1,500,000 1,880,000 Forecast loan repayment (1,500,000) (1,880,000) - - Net exposure (906,231) (1,057,232) Currency risk sensitivity analysis Foreign currency risk mainly arises from USD and RMB against RM. The exposure to other currencies is not material and hence, sensitivity analysis is not presented. A 10% (2021: 10%) strengthening of RM against the following currencies at the end of the reporting period would have increased/(decreased) equity and post-tax profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that the Group considered to be reasonably possible at the end of the reporting period. This analysis assumes that all other variables, in particular interest rates, remained constant and ignores any impact of forecasted transactions. Equity Group Company 2022 2021 2022 2021 RM’000 RM’000 RM’000 RM’000 USD against RM 84,816 88,192 64,964 - Profit of loss Group Company 2022 2021 2022 2021 RM’000 RM’000 RM’000 RM’000 USD and RMB against RM - USD (11,424) 5,026 3,910 80,350 - RMB 20,905 23,902 - - 9,481 28,928 3,910 80,350 ANNUAL REPORT 2022 294

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