YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 304 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 (continued) The currency profile of monetary financial assets and financial liabilities are as follows: (continued) Company 2023 Denominated in currencies other than the entity’s functional currency United States Dollar RM million Others RM million Denominated in functional currency RM million Total RM million Other investments - - 51 51 Receivables - - 3 3 Intercompany receivables 335 - 118 453 Cash and bank balances 74 - 47 121 Borrowings (17) - (1,004) (1,021) Lease liabilities - - (2) (2) Payables (2) - (50) (52) Intercompany payables (538) - (545) (1,083) (148) - (1,382) (1,530) 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.
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