Foreign currency sensitivity The following table details the sensitivity to a 5% increase and decrease in the relevant foreign currencies against the functional currency of each Group entity. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rates. The sensitivity analysis includes external loans as well as loans to foreign operations within the Group where they gave rise to an impact on the Group’s and the Company’s profit. If the relevant foreign currency weakens by 5% against the functional currency of each Group entity, the Group’s and the Company’s profit before income tax will increase (decrease) by: If the relevant foreign currency strengthens by 5% there would be an equal and opposite impact on the Group’s and the Company’s profit or loss shown above, on the basis that all other variables remain constant. (ii) Interest rate risk management The Group’s and the Company’s exposure to interest rate risk are restricted to their interest bearing bank balances, trade and other receivables, and deposits, lease liabilities and bank borrowings as disclosed in Notes 7, 8, 9, 21 and 22 to the financial statements respectively. The sensitivity analyses below have been determined based on the exposure to interest rates for a bank borrowing at the reporting date. The analysis is prepared assuming the amount of liability outstanding at the reporting date was outstanding since draw down. A 50 basis points increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates. NOTES TO FINANCIAL STATEMENTS 31 December 2025 Liabilities Assets 2025 2024 2025 2024 US$ US$ US$ US$ Group United States dollars 16,903,229 21,417,767 4,870,564 30,933,903 Indonesia rupiah 151,721,854 144,096,764 146,359,033 126,362,439 Singapore dollars 13,229,618 18,390,484 467,196 2,418,698 Company Singapore dollars 12,094,106 17,023,281 301,915 2,287,561 2025 2024 US$ US$ Group United States dollars 601,633 (475,807) Indonesia rupiah 268,141 886,716 Singapore dollars 638,121 798,589 Company Singapore dollars 589,610 736,786 4 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL MANAGEMENT (cont’d) (c) Financial risk management policies and objectives The Group’s and the Company’s overall financial risk management policies and objectives seek to minimise potential adverse effects on the financial performance of the Group and Company. Management regularly reviews the Group’s and the Company’s business and operational activities to identify areas of significant business risks, as well as appropriate measures through which to control and mitigate these risks. On an ongoing basis, management reviews all significant control policies and procedures, and highlights all significant matters to the Board of Directors and the audit and risk committee. There has been no significant change to the Group’s and the Company’s exposure to these financial risks or the manner in which it manages and measures the risk. The Group and Company do not hold or issue derivative financial instrument for speculative purposes. Market risk exposures are measured using sensitivity analysis indicated below. (i) Foreign exchange risk management The Group’s and the Company’s foreign currency exposures during the year arise from United States dollars, Indonesia rupiah and Singapore dollars. The Group and Company do not hedge against foreign exchange exposure as the exposures are managed primarily by using natural hedges that arise from offsetting assets and liabilities that are denominated in the same foreign currencies. At the end of the reporting period, the carrying amounts of monetary assets and monetary liabilities denominated in currencies other than the respective Group entities’ functional currencies are as follows: 78
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