GHL System Berhad Annual Report 2020

157 a n n u a l r e p o r t 2 0 2 0 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 CONT’D 26. 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 2020 2019 2020 2019 RM RM RM RM Profit after tax PHP/RM - strengthen by 10% (2019: 10%) (769,761) (586,279) - - PHP/RM - weaken by 10% (2019: 10%) 769,761 586,279 - - THB/RM - strengthen by 10% (2019: 10%) (632,162) (239,485) - - THB/RM - weaken by 10% (2019: 10%) 632,162 239,485 - - AUD/RM - strengthen by 10% (2019: 10%) (8,242) (929) - - AUD/RM - weaken by 10% (2019: 10%) 8,242 929 - - IDR/RM - strengthen by 10% (2019: 10%) (43,977) (80,905) - - IDR/RM - weaken by 10% (2019: 10%) 43,977 80,905 - - USD/RM - strengthen by 10% (2019: 10%) (251,696) (260,783) (2,427) (4,028) USD/RM - weaken by 10% (2019: 10%) 251,696 260,783 2,427 4,028 SGD/RM - strengthen by 10% (2019: 10%) (14,590) (19) - - SGD/RM - weaken by 10% (2019: 10%) 14,590 19 - - 27. DERIVATIVE Group Contract/ Notional amount Liabilities Contract/ Notional amount Liabilities 2020 2020 2019 2019 RM RM RM RM Forward currency contracts - - 1,544,980 - (a) Derivatives are initially recognised at fair value through profit or loss, and subsequently remeasured to fair value with changes in fair value being recognised in profit or loss. (b) Forward currency contracts have been entered into operationally hedge forecast purchases denominated in foreign currencies that are expected to occur at various dates within three (3) days to one (1) month from the end of the reporting period. The forward currency contracts have maturity dates that coincide with the expected occurrence of these transactions. The fair value of these components have been determined based on the difference between the contracted rate and the forward exchange rate as applicable to a contract of similar amount and maturity profile at the end of the reporting period.