GHL System Berhad Annual Report 2020

112 G H L S y s t e m S B e r h a d 1 9 9 4 0 1 0 0 7 3 6 1 ( 2 9 3 0 4 0 - D ) NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 CONT’D 13. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (cont’d) The Group as lessee (cont’d) (f) The Group leases several lease contracts that include extension and termination options. These are used to maximise operational flexibility in terms of managing the assets used in the Group’s operations. Management exercises its judgement in determining whether these extension and termination options are reasonably certain to be exercised. As at 31 December 2020, there is no undiscounted potential future rental payments that are not included in the lease term. (g) The currency exposure profiles of lease liabilities are as follows: Group Company 2020 2019 2020 2019 RM RM RM RM Ringgit Malaysia (“RM”) 2,788,696 4,179,649 401,533 270,265 Philippines Peso (“PHP”) 5,870,697 10,401,079 - - Thai Baht (“THB”) 401,819 728,172 - - 9,061,212 15,308,900 401,533 270,265 (h) The following table demonstrates the sensitivity analysis of the Group and of the Company to a reasonably possible change in PHP and THB, 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%) 446,173 790,482 - - PHP/RM - weaken by 10% (2019: 10%) (446,173) (790,482) - - THB/RM - strengthen by 10% (2019: 10%) 30,538 55,341 - - THB/RM - weaken by 10% (2019: 10%) (30,538) (55,341) - - (i) The table below summarises the maturity profile of the lease liabilities of the Group and of the Company at the end of the reporting period based on contractual undiscounted repayment obligations as follows: Group Company 2020 2019 2020 2019 RM RM RM RM Lease liabilities On demand or within one year 6,411,876 7,849,810 117,312 135,120 One to five years 2,966,198 8,886,946 314,998 146,680 Over five years - 1,160 - 1,160 9,378,074 16,737,916 432,310 282,960