Financial Statements Financial Statements Press Metal Aluminium Holdings Berhad 274 275 Integrated Annual Report 2023 Notes to the Financial Statements Notes to the Financial Statements 28. FINANCIAL INSTRUMENTS (CONT’D) 28.1 Categories of financial instruments (cont’d) Carrying amount RM’000 AC RM’000 FVTPL RM’000 Derivatives used for hedging RM’000 2022 Financial assets Group Other investments 1,803 - 1,803 - Trade and other receivables* 1,637,515 1,637,515 - - Derivative financial assets 515,507 - 3,183 512,324 Cash and cash equivalents 604,002 604,002 - - 2,758,827 2,241,517 4,986 512,324 Company Trade and other receivables 3,305,105 3,305,105 - - Derivative financial assets 18,664 - 1,438 17,226 Cash and cash equivalents 80,351 80,351 - - 3,404,120 3,385,456 1,438 17,226 Financial liabilities Group Loans and borrowings (4,854,170) (4,854,170) - - Trade and other payables (1,344,432) (1,344,432) - - Derivative financial liabilities (214,957) - (343) (214,614) (6,413,559) (6,198,602) (343) (214,614) Company Loans and borrowings (3,529,412) (3,529,412) - - Trade and other payables (63,648) (63,648) - - Derivative financial liabilities (8,722) - (6,602) (2,120) (3,601,782) (3,593,060) (6,602) (2,120) * Excluded advances made to purchasing agents 28. FINANCIAL INSTRUMENTS (CONT’D) 28.2 Net gains and losses arising from financial instruments Group Company 2023 RM’000 2022 RM’000 2023 RM’000 2022 RM’000 Net gains/(losses) on: Financial assets at fair value through profit or loss: - Mandatorily required by MFRS 9 - - - 78,030 Financial liabilities at fair value through profit or loss: - Mandatorily required by MFRS 9 (3,717) (628) 5,163 (11,097) Financial assets at amortised cost 15,779 (11,282) 111,208 140,632 Financial liabilities at amortised cost (272,880) (265,780) (202,892) (202,478) Derivatives used for hedging - Recognised in other comprehensive income (449,581) 1,061,842 (64,079) 167 Financial liabilities used for hedging - Recognised in other comprehensive income (4,301) (52,617) - - (714,700) 731,535 (150,600) 5,254 28.3 Financial risk management The Group has exposure to the following risks from its use of financial instruments: • Credit risk • Liquidity risk • Market risk 28.4 Credit risk Credit risk is the risk of a financial loss if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Group’s exposure to credit risk arises principally from the individual characteristics of each customer. The Company’s exposure to credit risk arises principally from loans and advances to subsidiaries and financial guarantees given to banks for credit facilities granted to subsidiaries. There are no significant changes as compared to prior periods.
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