29. FINANCIAL INSTRUMENTS: INFORMATION ON FINANCIAL RISKS AND OTHER EXPLANATORY INFORMATION (CONTINUED) 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 Malaysian Ringgit (“RM”). The Group’s currency exposure is as follows: Group Exposure in SGD USD GBP RM Others Total 2025 $ $ $ $ $ $ Financial assets Cash and bank balances 1,738,657 3,504,276 275,163 3,863,595 4,625,499 14,007,190 Trade and other receivables# 5,351,019 13,036,337 3,103,088 2,256,736 13,363,429 37,110,609 Subtotal 7,089,676 16,540,613 3,378,251 6,120,331 17,988,928 51,117,799 Financial liabilities Trade and other payables# 5,395,167 13,754,284 1,959,774 524,783 4,459,451 26,093,459 Borrowings 18,722,688 9,177,426 2,377,147 – 4,422,375 34,699,636 Lease liabilities 2,551,431 – 200,802 4,455 255,895 3,012,583 Subtotal 26,669,286 22,931,710 4,537,723 529,238 9,137,721 63,805,678 Net financial (liabilities)/assets (19,579,610) (6,391,097) (1,159,472) 5,591,093 8,851,207 (12,687,879) Less: Net financial liabilities/(assets) denominated in respective entities’ functional currencies 19,149,059 (1,175,020) 1,030,359 (5,597,186) (5,692,752) 7,714,460 Add: Currency forward contracts – 1,738,451 – – 831,301 2,569,752 Net currency exposure (430,551) (5,827,666) (129,113) (6,093) 3,989,756 (2,403,667) # The amount is before elimination of intragroup balances. MEGACHEM LIMITED ANNUAL REPORT 2025 167 31 DECEMBER 2025 NOTES TO THE FINANCIAL STATEMENTS
RkJQdWJsaXNoZXIy NTM2MDQ5