287 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) For the financial year ended 31 January 2023 ACCOUNTABILITY (FINANCIAL STATEMENTS) 41. Financial risk management objectives and policies (continued) (a) Market risk (continued) (ii) Foreign currency risk (continued) The currency profile of monetary financial assets and financial liabilities are as follows: (continued) Denominated in currencies other than the entities’ functional currencies Group Malaysian Ringgit RM million United States Dollar RM million Others RM million Denominated in functional currencies RM million Total RM million 2022 Other investments - - - 14 14 Receivables 13 11 48 572 644 Intercompany receivables 195 853 49 10,793 11,890 Cash and bank balances 12 95 57 2,695 2,859 Borrowings - (1) - (8,757) (8,758) Lease liabilities - - (16) (7) (23) Payables (7) (2) (53) (943) (1,005) Intercompany payables (116) (505) (31) (11,542) (12,194) Derivatives: - Interest rate swaps - - - (23) (23) Put option liability - - - (126) (126) 97 451 54 (7,324) (6,722) Instruments used by the Group The Group uses foreign exchange forwards to hedge its exposure to foreign currency risk. Under the Group’s policy, the critical terms of the forwards must align with the hedged terms. The Group only designates the spot component of foreign exchange forward contracts in hedge relationships. The spot component is determined with reference to relevant spot market exchange rates. The differential between the contracted forward rate and the spot market exchange rate is defined as the forward points. It is discounted, where material. The changes in the forward element of the foreign exchange forward contracts that relate to the hedged items are deferred in the foreign currency translation reserve. During the financial year, the Group entered into foreign exchange forward contracts to hedge the foreign exchange risk in relation to firm commitments to purchase property, plant and equipment denominated in a foreign currency.
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