123 Annual Report 2025 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2025 (CONT’D) 35. FINANCIAL INSTRUMENTS (CONT’D) (c) Financial risk management objectives and policies (cont’d) (iii) Market risks (cont’d) (b) Foreign currency risk (cont’d) Foreign currency sensitivity analysis The following table demonstrates the sensitivity of the Group’s and the Company’s profit/(loss) before tax for the financial year to a reasonably possible change in the RMB, USD and SGD exchange rates against the functional currencies of the Group and of the Company, with all other variables held constant. Change in currency rate Group Company Effect on profit/(loss) before tax 2025 2024 2025 2024 RM RM RM RM RMB Strengthened 10% 1,512,702 1,668,701 1,512,702 1,668,701 Weakened 10% (1,512,702) (1,668,701) (1,512,702) (1,668,701) USD Strengthened 10% 1,440,302 1,438,302 24,451 27,308 Weakened 10% (1,440,302) (1,438,302) (24,451) (27,308) SGD Strengthened 10% 5,101 35 34 35 Weakened 10% (5,101) (35) (34) (35) Material accounting policy information Transactions in foreign currencies are translated to the respective functional currencies of the Group and of the Company at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at financial year end are retranslated to the functional currency at the exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies are not retranslated at the end of the reporting date, except for those that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Foreign currency differences arising on retranslation are recognised in the profit or loss. In the consolidated financial statements, when settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future, foreign exchange gains and losses arising from such a monetary item are considered to form part of a net investment in a foreign operation and are recognised in other comprehensive income, and are presented in the foreign currency translation reserve in equity.
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