29. FINANCIAL INSTRUMENTS: INFORMATION ON FINANCIAL RISKS AND OTHER EXPLANATORY INFORMATION 29A. Categories of financial assets and financial liabilities The following table categorises the carrying amount of financial assets and liabilities recorded at the end of the reporting year: Group Company 2025 2024 2025 2024 $ $ $ $ Financial assets Financial assets at amortised cost 38,148,623 39,247,575 15,875,431 17,345,710 Financial assets at FVTOCI 1,351,100 1,351,100 1,351,100 1,351,100 Financial assets at FVTPL 499 44,923 – – At end of the year 39,500,222 40,643,598 17,226,531 18,696,810 Financial liabilities Financial liabilities at amortised cost 51,164,286 43,082,962 36,230,470 28,752,001 Financial liabilities at FVTPL 21,555 8,694 – 567 At end of the year 51,185,841 43,091,656 36,230,470 28,752,568 Further quantitative disclosures are included throughout these financial statements. 29B. Financial risk management The main purpose for holding or issuing financial instruments is to raise and manage the finances for the entity’s operating, investing and financing activities. There are exposures to the financial risks on the financial instruments such as credit risk, liquidity risk and market risk comprising interest rate, currency risk and price risk exposures. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group. Management sets the objectives and underlying principles of financial risk management for the Group. This includes establishing policies such as authority levels, oversight responsibilities, risk identification and measurement, exposure limits and hedging strategies in accordance with the objectives and underlying principles approved by the board of directors. There have been no changes to the exposures to risk; the objectives, policies and processes for managing the risk and the methods used to measure the risk. 29C. Fair values of financial instruments The analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 are disclosed in the relevant notes to the financial statements. These include the material financial instruments stated at amortised cost and at fair value in the statement of financial position. The carrying values of current financial instruments approximate their fair values due to the short-term maturity of these instruments. The disclosures of fair value are not made when the carrying amount of current financial instruments is a reasonable approximation of the fair value. MEGACHEM LIMITED ANNUAL REPORT 2025 163 31 DECEMBER 2025 NOTES TO THE FINANCIAL STATEMENTS
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