SCC Holdings Berhad Annual Report 2018

SCC Holdings Berhad | Annual Report 2018 .85 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2018 (CONT’D) 30. Financial Instruments (cont’d) (c) Financial risk management (cont’d) (ii) Liquidity risk Liquidity risk refers to the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. The Group’s exposure to liquidity risk arises primarily from its various payables. The Group actively manages its operating cash flows and the availability of funding so as to ensure that all repayment and funding needs are met. As part of its overall prudent liquidity management, the Group maintains sufficient levels of cash and cash equivalents to meet its working capital requirements and prudently balances its portfolio of short term and long-term funding requirements. The Group’s financial liabilities at the end of the reporting period either mature within one year or are repayable on demand. (iii) Market risks (a) Foreign currency exchange risk The Group is exposed to foreign currency risk through normal trading activities on sales transactions that are denominated in a currency other than the respective functional currencies of Group entities. The currencies giving rise to this risk are primarily United States Dollar (USD), Euro Dollar (EUR), Bruneian Dollar (BND) and Singapore Dollar (SGD). Foreign currency risk is monitored closely on an ongoing basis to ensure the net exposure is at an acceptable level. 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 was: USD EUR BND SGD Total RM’000 RM’000 RM’000 RM’000 RM’000 Group 2018 Financial Assets Cash and bank balances 693 - - - 693 693 - - - 693 Financial Liabilities Trade payables (648) (1) - - (649) 2017 Financial Assets Trade receivables - - - 14 14 Cash and bank balances 1,757 - - - 1,757 1,757 - - 14 1,771 Financial Liabilities Trade payable 93 17 1 - 111