SCC Holdings Berhad Annual Report 2017

76 SCC Holdings Berhad (511477-A) | Annual Report 2017 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2017 (CONT’D) 30. Financial Instruments (Cont’d) (a) Classification of financial instruments (cont’d) Loans and receivables Financial assets at fair value through profit or loss Financial liabilities measured at amortised cost Total RM’000 RM’000 RM’000 RM’000 Company 2017 Financial Assets Other receivables 2 - - 2 Amount due from subsidiary companies 6,267 - 6,267 Other investments - 6,626 - 6,626 Cash and bank balances 895 - - 895 7,164 6,626 - 13,790 Financial Liabilities Other payables - - 2,392 2,392 2016 Financial Assets Other receivables 1 - - 1 Amount due from subsidiary companies 6,232 - - 6,232 Fixed deposits with licensed banks - - - Other investments - 4,972 - 4,972 Cash and bank balances 1,759 - - 1,759 7,992 4,972 - 12,964 Financial Liabilities Other payables - - 2,262 2,262 (b) Financial risk management objectives and policies The Group’s financial risk management policy is to ensure that adequate financial resources are available for the development of the Group’s operations whilst managing its credit, liquidity, foreign currency and interest rate risks. The Group operates within clearly defined guidelines that are approved by the Board and the Group’s policy is not to engage in speculative transactions. The following sections provide details regarding the Group’s exposure to the abovementioned financial risks and the objectives, policies and processes for the management of these risks. (i) Credit risk Credit risk is the risk of a financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Group’s exposure to credit risk arises principally from its receivables from customers and deposits with banks and financial institutions. The Company’s exposure to credit risk arises principally from advances to subsidiary companies and financial guarantees given to banks for credit facilities granted to subsidiary companies.