DESTINI Annual Report 2018

42. Financial Instruments (Cont’d) (c) Financial risk management objectives and policies (Cont’d) (iii) Market risks (a) Foreign currency risk The Group is exposed to foreign currency risk on transactions that are denominated in currencies other than the respective functional currencies of Group entities. The currencies giving rise to this risk are primarily United States Dollar (“USD”), Euro (“EUR”), Singapore Dollar (“SGD”) and Renminbi (“RMB”). The carrying amounts of the Group’s foreign currency denominated financial assets and financial liabilities at the end of the reporting period are as follows: Foreign currency sensitivity analysis Foreign currency risk arises from Group entities which have a RM functional currency. The exposure to currency risk of Group entities which do not have a RM functional currency is not material and hence, sensitivity analysis is not presented. The following demonstrates the sensitivity of the Group’s profit after tax to a reasonably possible change in the USD, EUR, SGD and RMB exchange rates against RM, with all other variables held constant. NOTES TO THE FINANCIAL STATEMENTS Denominated in USD EUR RMB SGD RM RM RM RM Group 2018 Trade receivables 8,346,782 - - - Other receivables 210,987 - - - Cash and bank balances 987,230 2,036 - - Trade payables (14,876,549) (2,098,432) - (467,329) Other payables (4,783,291) (493,201) - - Bank borrowings - - (2,105,560) (5,322,924) (10,114,841) (2,589,597) (2,105,560) (5,790,253) 2017 Trade receivables 9,658,014 - - - Other receivables 239,426 - - - Fixed deposits with licensed banks - 2,118,825 - - Cash and bank balances 1,211,444 1,075 - - Trade payables (15,875,812) (1,607,576) - (360,291) Other payables (3,555,868) (210,079) - - Bank borrowings - (10,418,079) (2,173,523) (9,426,757) (8,322,796) (10,115,834) (2,173,523) (9,787,048) DESTINI BERHAD ANNUAL REPORT 2018 198