MISC Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS HIGHLIGHTS OF THE YEAR OUR BUSINESS OUR LEADERSHIP OUR PERFORMANCE OUR COMMITMENT TO SUSTAINABILITY OUR GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION 50 TH ANNUAL GENERAL MEETING 335 MISC BERHAD ANNUAL REPORT 2018 334 38. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT'D.) (b) Foreign currency risk (cont'd.) The net unhedged financial receivables and payables and cash and bank balances of the Group and of the Corporation that are not denominated in their functional currencies are as follows: Net financial receivables/(payables) and cash and bank balances held in non-functional currencies  Ringgit   Malaysia   RM'000   United   States   Dollar   RM'000   Great   Britain   Pound   RM'000   Euro   RM'000   Singapore   Dollar   RM'000   Total   RM'000  Functional currency of Group entities At 31 December 2018 Ringgit Malaysia - 207,381 102 - 22,721 230,204 United States Dollar 110,017 - 16,212 18,236 7,862 152,327 110,017 207,381 16,314 18,236 30,583 382,531 At 31 December 2017 Ringgit Malaysia -  29,083  1  9  8,143  37,236  United States Dollar  31,382  -  14  9,378  (2,674) 38,100  31,382  29,083  15  9,387  5,469  75,336  Functional currency of Corporation At 31 December 2018 United States Dollar (146,106) - 401 57,511 1,274 (86,920) At 31 December 2017 United States Dollar (232,377) -  1,689  58,881  3,379  (168,428) 38. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT'D.) (c) Liquidity risk Liquidity risk is the risk that the Group and the Corporation will encounter difficulty in meeting their financial obligations due to shortage of funds. The Group and the Corporation’s exposure to liquidity risk arise primarily from mismatches of the maturities of financial assets and liabilities. The Group and the Corporation’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans and various other sources of funding. The Group and the Corporation have at their disposal cash and short term deposits amounting to RM5,537,175,000 (2017: RM5,795,992,000) and RM1,957,819,000 (2017: RM2,577,773,000) respectively. As at 31 December 2018, the Group and the Corporation have unutilised credit lines of RM1.3 billion (2017: RM2.8 billion) and RM0.3 billion (2017: RM2.8 billion) respectively, which could be used for working capital purposes.