Financial Statements Financial Statements Press Metal Aluminium Holdings Berhad 246 247 Integrated Annual Report 2023 Notes to the Financial Statements Notes to the Financial Statements 10. DERIVATIVE FINANCIAL ASSETS/(LIABILITIES) Nominal value RM’000 Assets RM’000 Liabilities RM’000 Group 2023 Non-current Commodity swaps and options 2,241,123 21,062 (75,291) Forward exchange contracts 12,318,977 34,760 (162,371) Cross currency swaps 1,835,000 2,245 (61,422) 16,395,100 58,067 (299,084) Current Commodity swaps and options 1,826,766 155,270 (15,659) Forward exchange contracts 4,211,929 13,071 (88,110) Cross currency swaps 550,000 - (36,430) 6,588,695 168,341 (140,199) Derivatives held for trading at fair value through profit or loss 77,209 302 (907) Derivatives used for hedging 22,906,586 226,106 (438,376) 22,983,795 226,408 (439,283) 2022 Non-current Commodity swaps and options 1,065,941 40,496 (7,570) Forward exchange contracts 11,552,613 318,187 (2,524) Cross currency swaps 2,300,000 32,426 (2,120) 14,918,554 391,109 (12,214) Current Commodity swaps and options 4,991,977 85,249 (151,854) Forward exchange contracts 3,302,504 39,149 (39,358) Cross currency swaps 250,000 - (11,531) 8,544,481 124,398 (202,743) Derivatives held for trading at fair value through profit or loss 146,079 3,183 (343) Derivatives used for hedging 23,316,956 512,324 (214,614) 23,463,035 515,507 (214,957) 10. DERIVATIVE FINANCIAL ASSETS/(LIABILITIES) (CONT’D) Nominal value RM’000 Assets RM’000 Liabilities RM’000 Company 2023 Non-current Cross currency swaps 950,000 2,036 (34,815) Current Cross currency swaps 550,000 - (36,430) Derivatives used for hedging 1,500,000 2,036 (71,245) 2022 Non-current Cross currency swaps 1,500,000 17,226 (2,120) Current Commodity swaps and options 397,734 1,438 (6,602) Derivatives held for trading at fair value through profit or loss 397,734 1,438 (6,602) Derivatives used for hedging 1,500,000 17,226 (2,120) 1,897,734 18,664 (8,722) Commodity swaps and options are used to lock in aluminium prices for future sales while forward exchange contracts are used to manage the foreign currency exposures arising from the monetary assets and liabilities denominated in currencies other than the functional currencies of Group entities. Some of the derivative contracts have maturities of more than five years after the end of the reporting period. Where necessary, the derivatives are rolled over at maturity. The Group and the Company also entered into cross currency swaps to swap their RM denominated loan to USD. The swap was performed to manage the Group’s exposure to USD and RM within the Group’s policy.
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