GHL System Berhad Annual Report 2018

a n n u a l r e p o r t 2 0 1 8 137 NOT ES TO THE F I NANC I A L STAT EMENTS 3 1 D e c e m b e r 2 0 1 8 C O N T ’ D 28. TRADE AND OTHER PAYABLES (cont’d) (j) The following table demonstrates the sensitivity analysis of the Group to a reasonably possible change in the PHP, THB, AUD, IDR, USD and SGD exchange rates against the respective functional currencies of the Group entities, with all other variables held constant: Group Company 2018 2017 2018 2017 RM RM RM RM Profit after tax PHP/RM - strengthen by 10% (2017: 10%) (490,903) (502,007) - - PHP/RM - weaken by 10% (2017: 10%) 490,903 502,007 - - THB/RM - strengthen by 10% (2017: 10%) (447,305) (812,518) - - THB/RM - weaken by 10% (2017: 10%) 447,305 812,518 - - AUD/RM - strengthen by 10% (2017: 10%) (1,832) (69,645) - - AUD/RM - weaken by 10% (2017: 10%) 1,832 69,645 - - IDR/RM - strengthen by 10% (2017: 10%) (2,186) - - - IDR/RM - weaken by 10% (2017: 10%) 2,186 - - - USD/RM - strengthen by 10% (2017: 10%) (208,962) - (236) - USD/RM - weaken by 10% (2017: 10%) 208,962 - 236 - SGD/RM - strengthen by 10% (2017: 10%) (27,054) - - - SGD/RM - weaken by 10% (2017: 10%) 27,054 - - - 29. CONTINGENT LIABILITIES Group Company 2018 2017 2018 2017 RM RM RM RM Unsecured Corporate guarantee given to banks for credit facilities granted to subsidiaries - - 95,907,000 88,950,000 Guarantees given to a third party in respect of trade and contract 24,062,732 27,041,167 1,655,400 3,246,950 24,062,732 27,041,167 97,562,400 92,196,950 The Group designates corporate guarantees given to banks for credit facilities granted to subsidiaries as insurance contracts as defined in MFRS 4 Insurance Contracts . The Group recognises these insurance contracts as recognised insurance liabilities when there is a present obligation, legal or constructive, as a result of a past event, when it is probable that an outflow of resources embodying economic benefits would be required to settle the obligation and reliable estimate can be made of the amount of the obligation.