Page 208 - SC SCAR 2023 ENGLISH Flipbook

PART 5 ORGANISATION INFORMATION
Cash and cash equivalents
The cash and cash equivalents are held with licensed banks and financial institutions. As at the end of the reporting period, the maximum exposure to credit risk is represented by their carrying amounts in the statement of financial position.
These licensed banks and financial institutions have low credit risk. In addition, some of the bank balances are insured by government agencies. Consequently, the SC is of the view that the loss allowance is not material and hence, it is not provided for.
The SC’s investments are mainly in fixed deposits with approved financial institutions and bonds issued by the Government and other government agencies.
Investments and other financial assets
Risk management objectives, policies and processes for managing the risk
Exposure to credit risk, credit quality and collateral
As at the end of the reporting period, the SC has holdings in debt securities that are managed internally with holdings in Malaysian Government Investment issues (GII) and Guaranteed bonds. Additionally, the debt securities that are managed by external fund managers have a minimum rating of A and above, with an oversight by the Investment Advisory Panel.
25.4 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 as well as contract liability.
2023
Financial liabilities
Other payables and accruals* Contract liabilities
Lease liabilities
2022
Financial liabilities
Other payables and accruals* Contract liabilities
* Exclude non-financial instruments
Carrying amount RM’000
93,448 5,137 9,303
107,888
47,066 2,680
49,746
Contractual cashflow
93,448 - 10,023
103,471
47,066 -
47,066
Under Over 1-year 1-year
93,448 - 5,137 - 3,246 6,777
101,831 6,777
47,066 - 2,680 -
49,746 -
206 SECURITIES COMMISSION MALAYSIA ANNUAL REPORT 2023