Press Metal Aluminium Holdings Berhad SECTION 6 • FINANCIAL STATEMENTS 274 Notes to the Financial Statements 10. DERIVATIVE FINANCIAL ASSETS/(LIABILITIES) (CONT’D) Nominal value RM’000 Assets RM’000 Liabilities RM’000 Company 2024 Non-current Cross currency swaps 450,000 11,191 (3,952) Current Cross currency swaps 500,000 - (24,869) Derivatives held for trading at fair value through profit or loss 500,000 - (24,869) Derivatives used for hedging 450,000 11,191 (3,952) 950,000 11,191 (28,821) 2023 Non-current Cross currency swaps 950,000 2,036 (34,815) Current Commodity swaps and options 550,000 - (36,430) Derivatives used for hedging 1,500,000 2,036 (71,245) 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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