178 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M) NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 (cont’d) 35. FINANCIAL INSTRUMENTS The activities of the Group and of the Company are exposed to a variety of market risk (including foreign currency risk, interest rate risk and equity price risk), credit risk and liquidity risk. The overall financial risk management policy focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group and of the Company. 35.1 FINANCIAL RISK MANAGEMENT POLICIES The policies in respect of the major areas of treasury activity are as follows:- (a) Market Risk (i) Foreign Currency Risk The Group is exposed to foreign currency risk on transactions and balances that are denominated in currencies other than Ringgit Malaysia (“RM”). The currencies giving rise to this risk are primarily United States Dollar (“USD”), Singapore Dollar (“SGD”) and Thai Baht (“THB”). Foreign currency risk is monitored closely on an ongoing basis to ensure that the net exposure is at an acceptable level. The Group also holds cash and cash equivalents denominated in foreign currencies for working capital purposes. The exposure to foreign currency risk (a currency which is other than the functional currency of the entities within the Group) based on the carrying amounts of the financial instruments at the end of the reporting period is summarised below:- United States Singapore Ringgit Dollar Dollar Thai Baht Malaysia Total The Group RM’000 RM’000 RM’000 RM’000 RM’000 2024 Financial Assets Trade receivables 8,618 - - 143,531 152,149 Cash and bank balances 7,354 16 - 314,220 321,590 15,972 16 - 457,751 473,739 Financial Liability Trade payables (159) (246) (164) (71,983) (72,552) Net financial assets/ (liabilities) 15,813 (230) (164) 385,768 401,187 Less: Net financial assets/(liabilities) denominated in respective entities’ functional currencies - - - (385,768) (385,768) Currency exposure 15,813 (230) (164) - 15,419
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