106 EXCEL FORCE MSC BERHAD Notes to the Financial Statements (cont’d) 34. FINANCIAL INSTRUMENTS (CONT’D) (a) Classification of financial instruments (cont’d) The following table analyses the financial assets and liabilities in the statements of financial position by the class of financial instruments to which they are assigned, and therefore by the measurement basis: (cont’d) At amortised cost At FVTPL At FVTOCI Total RM RM RM RM 2020 Group Financial Liabilities Trade payables 281,762 - - 281,762 Other payables 4,654,027 - - 4,654,027 Lease liabilities 1,005,317 - - 1,005,317 5,941,106 - - 5,941,106 Company Financial Assets Other investments - - 13,042,200 13,042,200 Trade receivables 5,670,613 - - 5,670,613 Other receivables 24,314,131 - - 24,314,131 Amount due from subsidiary companies 157,069 - - 157,069 Deposits, cash and bank balances and short-term funds 2,249,384 19,875,977 - 22,125,361 32,391,197 19,875,977 13,042,200 65,309,374 Financial Liabilities Trade payables 255,702 - - 255,702 Other payables 4,553,608 - - 4,553,608 Lease liabilities 1,005,317 - - 1,005,317 5,814,627 - - 5,814,627 (b) Financial risk management objectives and policies The Group’s financial risk management policy is to ensure that adequate financial resources are available for the development of the Group’s operations whilst managing its credit, liquidity, interest rate and foreign currency risks. The Group operates within clearly defined guidelines that are approved by the Board and the Group’s policy is not to engage in speculative transactions. The following sections provide details regarding the Group’s exposure to the above-mentioned financial risks and the objectives, policies and processes for the management of these risks. (i) Credit risk Credit risk is the riskof a financial loss to theGroup if acustomerorcounterparty toa financial instrument fails tomeet its contractual obligations. The Group’s exposure to credit risk arises principally from its receivables from customers and deposits with banks. The Company’s exposure to credit risk arises principally from its receivables from customers, advances to subsidiary companies and deposits with banks. There are no significant changes as compared to prior year.
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