Green Technology Annual Report

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 28. FINANCIAL INSTRUMENTS (CONT’D) 28.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D) (c) Liquidity Risk (Cont’d) Maturity Analysis The following table sets out the maturity profile of the financial liabilities at the end of the reporting period based on contractual undiscounted cash flows (including interest payments computed using contractual rates or, if floating, based on the rates at the end of the reporting period):- The Group Weighted Average Effective Interest Rate % Carrying Amount RM Contractual Undiscounted Cash Flows RM Within 1 Year RM 1 – 5 years 2019 Non-derivative Financial Liabilities Trade payables – 8,355,703 8,355,703 8,355,703 – Other payables and accruals – 4,748,132 4,748,132 4,748,132 – 13,103,835 13,103,835 13,103,835 – Other financial liabilities Lease liabilities 3.50 55,120 57,955 19,920 38,035 13,158,955 13,161,790 13,123,755 38,035 28. FINANCIAL INSTRUMENTS (CONT’D) 28.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D) (b) Credit Risk (Cont’d) (iii) Assessment of Impairment Losses (Cont’d) Other Receivables Other receivables are also subject to the impairment requirements of MFRS 9, the identified impairment loss was immaterial and hence, it is not provided for. Fixed Deposits with Licensed Banks, Cash and Bank Balances The Group considers these banks and financial institutions have low credit risks. In addition, some of the bank balances are insured by Government agencies. Therefore, the Group is of the view that the loss allowance is immaterial and hence, it is not provided for. Amount Owing By Subsidiaries The Company applies the 3-stage general approach to measuring expected credit losses for all inter-companies balances. No expected credit loss is recognised on amount owing by subsidiaries as it is negligible. (c) Liquidity Risk Liquidity risk arises mainly from general funding and business activities. The Group practises prudent risk management by maintaining sufficient cash balances with funds granted by the government. 132 MALAYSIAN GREEN TECHNOLOGY & CLIMATE CHANGE CENTRE ANNUAL REPORT 2019