119 www.excelforce.com.my Notes to the Financial Statements (cont’d) 36. Financial Instruments (cont’d) (c) Financial risk management objectives and policies (cont’d) (iii) Market risks (cont’d) (b) Foreign currency risk The Group is exposed to foreign currency risk on transactions that are denominated in currencies other than the respective functional currencies of Group entities. The currencies giving rise to this risk are primarily United States Dollar (USD) and Singapore Dollar (SGD). The Group has not entered into any derivative instruments for hedging or trading purposes. Where possible, the Group will apply natural hedging by selling and purchasing in the same currency. However, the exposure to foreign currency risk is monitored from time to time by management to ensure that the net exposure is at an acceptable level. The carrying amounts of the Group’s and of the Company’s foreign currency denominated financial assets and financial liabilities at the end of the reporting period are as follows: Denominated in USD SGD RM RM Group 2024 Other investments 14,158,500 - Deposits, cash and bank balances 273,083 353 Trade payables (48,564) - 14,383,019 353 Company 2024 Deposits, cash and bank balances 273,083 353 Group and Company 2023 Trade receivables - 12,426 Deposits, cash and bank balances 271,307 351 Trade payables (48,147) - 223,160 12,777 Foreign currency sensitivity analysis The following table demonstrates the sensitivity of the Group’s and the Company’s profit before tax for the financial year to a reasonably possible change in the USD and SGD exchange rates against the functional currencies of the Group and of the Company, with all other variables held constant.
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