Page 153 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

19.5 Liquidity risk

Liquidity risk is the risk that the SC will not be able to meet its financial obligations as they fall
due. The SC monitors and maintains a level of cash and cash equivalents deemed necessary by
the SC to finance its operations and to mitigate the effects of fluctuations in cash flows.

Maturity analysis

The table below summarises the maturity profile of the SC’s financial liabilities as at the end of
the reporting period. There is no contractual interest rate for other payables and accruals.

carrying contractual under
amount cash flow 1 year
RM’000 RM’000 RM’000
2018
Financial liabilities
Other payables and accruals 57,528 57,528 57,528

2017
Financial liabilities
Other payables and accruals 59,372 59,372 59,372

19.6 Market risk

Market risk is the risk that changes in market prices, such as interest rates, that will affect the
SC’s financial position or cash flows.

19.6.1 Interest rate risk

The interest rate profile of the SC’s significant interest-bearing financial instruments,
based on carrying amounts as at the end of the reporting period was:

2018 2017
RM’000 RM’000
Fixed rate instruments
Financial assets 785,293 767,284

Interest rate risk sensitivity analysis

Fair value sensitivity analysis for fixed rate instruments

The SC does not have any fixed rate financial assets at fair value through profit or loss.
Therefore, a change in interest rates at the end of the reporting period would not
affect profit or loss.

19.7 Fair value information

The carrying amounts of cash and cash equivalents, short term receivables and payables
reasonably approximate their fair values due to the relatively short term nature of these financial
instruments.

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