161 ENRA GROUP BERHAD ANNUAL REPORT 2025 Notes To The Financial Statements (Cont’d) 31 March 2025 Registration No: 65 199201005296 (236800 - T) 11. DERIVATIVE LIABILITY Contract/ Notional amount Assets Contract/ Notional amount Liability Group RM’000 RM’000 RM’000 RM’000 2025 Forward foreign currency contracts - - - - 2024 Forward foreign currency contracts - - 2,677 (40) Company 2025 Forward foreign currency contracts - - - - 2024 Forward foreign currency contracts - - 2,469 (37) (a) Derivatives are initially recognised at fair value on the date the derivative contracts are entered into and are subsequently remeasured to fair value with changes in fair value being recognised in profit or loss. (b) The Group and Company use forward foreign currency contracts to manage some of the foreign currency transaction exposure. These contracts are not designated as cash flow or fair value hedges and are entered into for period consistent with foreign currency transaction exposure and fair value changes exposure. The Group and Company do not apply hedge accounting. Forward foreign currency contracts represent selling and buying contracts are used to hedge the principal and interest of other borrowings of the Company denominated in Singapore Dollar and to hedge the Group’s receivable from a customer denominated in US Dollar for which the commitments existed at the reporting date. (c) During the financial year, the Group and the Company recognised a net gain of RM40,000 (2024: loss of RM74,000) and RM 37,000 (2024: loss of RM77,000) respectively arising from the fair value changes in derivatives. The methods and assumptions applied in determining the fair values of derivatives are disclosed in Note 30(b)(v) to the financial statements.
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