EXCEL FORCE MSC BERHAD Annual Report 2018

112 ANNUAL REPORT 2018 32. Financial Instruments (cont’d) (b) Financial risk management objectives and policies (cont’d) (ii) Liquidity risk Liquidity risk refers to the risk that the Group or the Company will encounter difficulty in meeting its financial obligations as they fall due. The Group’s and the Company’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Group’s and the Company’s funding requirements and liquidity risk are managed with the objective of meeting business obligations on a timely basis. The Group finances its liquidity through internally generated cash flows and minimises liquidity risk by keeping committed credit lines available. The following table analyses the remaining contractual maturity for financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group and the Company can be required to pay. On demand Total Total or within contractual carrying 1 year 1 to 2 years 2 to 5 years cash flows amount RM RM RM RM RM Group 2018 Non-derivative financial liabilities Trade payables 265,867 - - 265,867 265,867 Other payables 10,184,788 - - 10,184,788 10,184,788 10,450,655 - - 10,450,655 10,450,655 2017 Non-derivative financial liabilities Trade payables 337,160 - - 337,160 337,160 Other payables 2,087,480 - - 2,087,480 2,087,480 Loan and borrowing 981,108 981,108 2,277,786 4,240,002 4,240,002 3,405,748 981,108 2,277,786 6,664,642 6,664,642 Notes To The Financial Statements 31 December 2018 (cont’d)