GHL System Berhad Annual Report 2019

A N N U A L R E P O R T 2 0 1 9 159 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 CONT’D 27. 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 2019 2018 2019 2018 RM RM RM RM Profit after tax PHP/RM - strengthen by 10% (2018: 10%) (586,279) (404,706) - - PHP/RM - weaken by 10% (2018: 10%) 586,279 404,706 - - THB/RM - strengthen by 10% (2018: 10%) (239,485) (447,305) - - THB/RM - weaken by 10% (2018: 10%) 239,485 447,305 - - AUD/RM - strengthen by 10% (2018: 10%) (929) (1,832) - - AUD/RM - weaken by 10% (2018: 10%) 929 1,832 - - IDR/RM - strengthen by 10% (2018: 10%) (80,905) (2,186) - - IDR/RM - weaken by 10% (2018: 10%) 80,905 2,186 - - USD/RM - strengthen by 10% (2018: 10%) (260,783) (208,962) (4,028) (236) USD/RM - weaken by 10% (2018: 10%) 260,783 208,962 4,028 236 SGD/RM - strengthen by 10% (2018: 10%) (19) (27,054) - - SGD/RM - weaken by 10% (2018: 10%) 19 27,054 - - 28. EMPLOYEE BENEFITS OBLIGATIONS Group 2019 2018 RM RM Present value of unfunded obligations 1,395,720 1,134,164 Recognised liability for defined benefit obligations 1,395,720 1,134,164 (a) Liability for employee benefits obligations GHL Systems Philippines, Inc. (“GSP”), a 99.99% owned subsidiary of GHL Asia Pacific Limited recognised liability for defined benefit obligations based on actuarial valuation report dated 27 January 2020. GSP operates a defined benefit plan that provides pension benefit for employees upon retirement based on Republic Act 7641. Under the plan, eligible employees are entitled to retirement benefit of one-half month salary for every year of service, a fraction of at least six (6) months is considered as one whole year. The retirement benefit are payable to employees who are at least 60 years old with at least 6 years of services.