YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 302 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 January 2024 41. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) (a) Market risk (continued) (ii) Foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange rates relates primarily to the Group’s operating activities and the Group’s net investments in foreign subsidiaries. The Group has transactional currency exposures arising from sales or purchases that are denominated in a currency other than the respective functional currencies of the Group entities, primarily RM, USD, INR, Brazilian Reias (“BRL”) and Norwegian Krone (“NOK”). The Group holds cash and cash equivalents denominated in foreign currencies for working capital purposes. The other financial instruments denominated in foreign currencies include finance lease receivables, trade and other receivables, trade and other payables, loans and borrowings and lease liabilities. The Group is also exposed to currency translation risk arising from its net investment in foreign operations primarily in Labuan, Singapore, Norway, Republic of the Marshall Islands, British Virgin Islands, Brazil, India and the Netherlands. Except as disclosed in Note 42(a)(ii), the Group’s investments in its foreign subsidiaries, joint ventures and associates are not hedged as the currency position in these investments is considered to be long term in nature. The currency profile of monetary financial assets and financial liabilities are as follows: Group 2024 Denominated in currencies other than the entities’ functional currencies Malaysian Ringgit RM million United States Dollar RM million Others RM million Denominated in functional currencies RM million Total RM million Other investments - - - 74 74 Receivables - 11 70 794 875 Intercompany receivables 11 992 327 19,350 20,680 Cash and bank balances - 34 47 2,982 3,063 Borrowings - (121) (2) (16,196) (16,319) Lease liabilities - - (81) (25) (106) Payables (1) (32) (219) (2,882) (3,134) Intercompany payables (68) (377) (23) (533) (1,001) Derivatives: Interest rate swaps - - - 356 356 Foreign exchange forward contracts - (24) - - (24) Put option liability - - - (23) (23) (58) 483 119 3,897 4,441
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