Financial Statements Notes to the Financial Statements 24. DERIVATIVE ASSETS AND LIABILITIES (continued) Nominal value Fair value 2023 2022 2023 2022 RM’000 RM’000 RM’000 RM’000 Derivatives at fair value through profit or loss − Foreign exchange forward contracts 2,298,156 508,135 60,186 38,096 − Cross currency swaps 373,370 171,657 192,163 291,978 − Call option granted to NCI – 27,321 – – − Interest rate swaps 69,979 – (252) – Derivatives used for hedging − Interest rate caps 1,128,701 1,145,324 4,365 12,799 − Interest rate swaps 922,672 145,286 (8,868) 124 − Cross currency interest rate swaps 286,477 265,828 83,227 61,410 5,079,355 2,263,551 330,821 404,407 The Group enters into interest rate caps, interest rate swaps, cross currency interest rate swaps, cross currency swaps and foreign exchange forward contracts to manage interest rate fluctuations and exchange rate fluctuations on certain loans, as set out in note 35(vi) and (vii). Call option granted to NCI The Group granted a call option to non-controlling interests of GHIPL to purchase the Group’s 3% interest in GHIPL on a fully diluted basis, at a fixed price of INR500.0 million (equivalent to RM27.3 million), pursuant to an option agreement entered with the non-controlling interests. The call option granted to non-controlling interests is classified as a financial derivative liability. There was no change in fair value of the call option during 2022. On 25 September 2023, the above mentioned call option lapsed following the acquisition of non-controlling interest by the Group (refer to note 40). Offsetting financial assets and financial liabilities The Group’s derivative transactions are entered into under International Swaps and Derivatives Association (“ISDA”) master netting agreements. In general, under such agreements, the amounts owed by each counterparty in respect of the same transactions outstanding in the same currency under the agreement are aggregated into a single net amount that is payable by one party to the other. In certain circumstances, for example when a credit event such as a default occurs, all outstanding transactions under the agreement are terminated, the termination value is assessed and only a single net amount is due or payable in settlement of all outstanding transactions. The above agreements do not meet the criteria for offsetting in the statement of financial position as the right to set-off recognised amounts is enforceable only following an event of default, insolvency or bankruptcy of the Group or the counterparties. In addition, the Group and its counterparties do not intend to settle on a net basis or to realise the assets and settle the liabilities simultaneously in its normal course of business. IHH Healthcare Berhad 190
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