Serba Dinamik Annual Report 2021

Registration No: 201501042584 (1167905-P) Serba Dinamik Holdings Berhad (Incorporated in Malaysia) 126 32. Financial risk management policies (continued) (c) Market risk Foreign currency risk The Group is exposed to transactional currency risk primarily through sales, purchases and borrowings that are denominated in a currency other than the functional currency of Group entities. The currencies giving rise to this risk are primarily United States Dollar (“USD”). Exposure to foreign currency risk The Group’s exposure to foreign currency (a currency which is other than the functional currency of the Group entities) risk, based on carrying amounts as at the end of the reporting period are as follows: Balances denominated in USD Group 30.6.2021 31.12.2019 RM’000 RM’000 Trade receivables 13,494 17,511 Cash and cash equivalents 6,869 1,721 Trade payables (5,764) (9,242) Net exposure in the statement of financial position 14,599 9,990 Currency risk sensitivity analysis A 10% sensitivity strengthening of the Ringgit Malaysia (“RM”) against USD at the end of the reporting period would have decreased equity and post-tax profit or loss by the amounts shown below. The analysis assumes that all other variables, in particular interest rates, remained constant. Group Financial period from 1.1.2020 to 30.6.2021 Financial year from 1.1.2019 to 31.12.2019 RM’000 RM’000 USD 1,110 759 A 10% weakening of the Ringgit Malaysia (“RM”) against the above currencies at the end of the reporting period would have had equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remained constant.