150 MEGACHEM LIMITED Notes to The Financial Statements 31 December 2024 29. Financial instruments: information on financial risks and other explanatory information (cont’d) 29F. Interest rate risk (cont’d) The following table demonstrates the sensitivity of the Group’s and Company’s net profit or loss after tax and equity to changes in interest rates movement (assuming all other variables are consistent): 2024 2023 Increase / (Decrease) Profit after tax Equity attributable to the equity holders of the company Loss after tax Equity attributable to the equity holders of the company Group $’000 $’000 $’000 $’000 Increased by 100 basis points (210) (207) 235 (232) Decreased by 100 basis points 210 207 (235) 232 Company Increased by 100 basis points (157) (157) 188 (188) Decreased by 100 basis points 157 157 (188) 188 29G. Foreign currency risk Foreign exchange risk arises on financial instruments that are denominated in a foreign currency, ie in a currency other than the functional currency in which they are measured. For the purpose of this Singapore Financial Reporting Standards (International) on financial instruments: disclosures, currency risk does not arise from financial instruments that are non-monetary items or from financial instruments denominated in the functional currency. The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures primarily with respect to United States Dollar (“USD”), Sterling Pound (“GBP”) and Malaysia Ringgit (“RM”). The Group’s currency exposure is as follows: Group Exposure in SGD USD GBP RM Others Total 2024 $’000 $’000 $’000 $’000 $’000 $’000 Financial assets Cash and bank balances 2,209 4,357 69 4,394 4,940 15,969 Trade and other receivables # 5,109 14,788 3,258 3,061 11,300 37,516 Subtotal 7,318 19,145 3,327 7,455 16,240 53,485 Financial liabilities Trade and other payables # 5,989 15,269 2,040 670 4,571 28,539 Borrowings 6,344 13,841 2,077 – 2,978 25,240 Lease liabilities 2,712 – 212 6 178 3,108 Subtotal 15,045 29,110 4,329 676 7,727 56,887 Net financial (liabilities)/assets (7,727) (9,965) (1,002) 6,779 8,513 (3,402) Less: Net financial liabilities/(assets) denominated in respective entities’ functional currencies 7,216 (767) 923 (6,779) (5,236) (4,643) Add: Currency forward contracts – 2,019 – – 902 2,921 Net currency exposure (511) (8,713) (79) – 4,179 (5,124) # The amount is before elimination of intragroup balances.
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