EXCEL FORCE MSC BERHAD 115 Notes to the Financial Statements (Cont’d) 35. Financial Instruments (Cont’d) (c) Financial risk management objectives and policies (Cont’d) (ii) Liquidity risk (Cont’d) 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. (Cont’d) On demand or within 1 year 1 to 2 years Total contractual cash flows Total carrying amount RM RM RM RM Company 30.6.2023 Non-derivative financial liabilities Trade payables 322,386 - 322,386 322,386 Other payables 2,794,386 - 2,794,386 2,794,386 Lease liabilities 539,741 105,640 645,381 632,211 3,656,513 105,640 3,762,153 3,748,983 31.12.2021 Non-derivative financial liabilities Trade payables 278,270 - 278,270 278,270 Other payables 4,016,938 - 4,016,938 4,016,938 Lease liabilities 363,074 332,818 695,892 672,117 4,658,282 332,818 4,991,100 4,967,325 (iii) Market risks (a) Interest rate risk The Group’s and the Company’s fixed rate deposits placed with licensed banks and borrowings are exposed to a risk of change in their fair value due to changes in interest rates. The Group’s and the Company’s variable rate borrowings are exposed to a risk of change in cash flows due to changes in interest rates. The Group manages the interest rate risk of its deposits with licensed banks by placing them at the most competitive interest rates obtainable, which yield better returns than cash at bank and maintaining a prudent mix of short and long-term deposits. The Group manages its interest rate risk exposure from interest bearing borrowings by obtaining financing with the most favourable interest rates in the market. The Group constantly monitors its interest rate risk by reviewing its debts portfolio to ensure favourable rates are obtained. The Group does not utilise interest swap contracts or other derivative instruments for trading or speculative purposes.
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