Green Technology Annual Report

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 26. CASH FLOW INFORMATION (CONT’D) (b) The cash and cash equivalents comprise the following:- The Group The Company 2019 RM 2018 RM 2019 RM 2018 RM Fixed deposits with licensed banks 49,676,707 33,931,215 49,676,707 33,931,215 Cash and bank balances 5,664,072 4,957,370 3,141,431 2,436,581 55,340,779 38,888,585 52,818,138 36,367,796 Less:- Fixed deposits with maturity of more than 3 months (20,460,602) (30,146,282) (20,460,602) (30,146,282) Fixed deposits pledged to a licensed bank (1,025,483) (38,033) (1,025,483) (38,033) 33,854,694 8,704,270 31,332,053 6,183,481 27. RELATED PARTY DISCLOSURES Identities of Related Parties Parties are considered to be related to the Group if the Group or the Company has the ability, directly or indirectly, to control or jointly control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group or the Company and the party are subject to common control. In addition to the information detailed elsewhere in the financial statements, the Group has related party relationships with its directors, key management personnel and entities within the same group of companies. 28. FINANCIAL INSTRUMENTS The Group’s activities are exposed to a variety of market risk (including foreign currency risk, interest rate risk and equity price risk), credit risk and liquidity risk. The Group’s overall financial risk management policy focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance. 28.1 FINANCIAL RISK MANAGEMENT POLICIES The Group’s policies in respect of the major areas of treasury activity are as follows:- (a) Market Risk (i) Foreign Currency Risk The Group does not have any transactions or balances denominated in foreign currencies and hence, is not exposed to foreign currency risk. (ii) Interest Rate Risk The Group does not have any interest-bearing borrowings and hence, is not exposed to interest rate risk. 128 MALAYSIAN GREEN TECHNOLOGY & CLIMATE CHANGE CENTRE ANNUAL REPORT 2019