DESTINI Annual Report 2019

NOTES TO THE FINANCIAL STATEMENTS 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”), Chinese Renminbi (“RMB”), United Arab Emirates Dirham (“AED”), Thai Baht (“THB”), Canadian Dollar (“CAD”) and Myanmar Kyat (“KYAT”). The Group has not entered into any derivative instruments for hedging or trading purposes as the net exposure to foreign currency risk is not significant. Where possible, the Group will apply natural hedging by selling and purchasing in the same currency. However, the exposure to foreign currency risk is monitored from time to time by management. Exposure to foreign currency risk The carrying amounts of the Group’s foreign currency denominated financial assets and financial liabilities which have RM functional currency at the end of the reporting period are as follows: Denominated in USD EUR SGD SGD THB KYAT RM RM RM RM RM RM Group 2019 Trade receivables 201,675 - - - - - Cash and bank balances 10,303 - - - - - Trade payables (8,945,012) (2,859) (58,466) (37,026) (48,142) (18,218) Other payables (342,986) - (129,052) - (7,812) - Denominated in USD AED RM RM Group 2019 Receivables 7,509,940 11,999,669 Cash and bank balances 70,604 460,970 Payables (1,004,257) (2,233,254) FINANCIAL STATEMENTS 06 ANNUAL REPORT 2019 193