DAYANG ENTERPRISE HOLDINGS BHD
(712243-U)
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Annual Report
2015
124
32. Financial instruments (cont’d)
32.3 Financial risk management (cont’d)
(a) Credit risk (cont’d)
Receivables from external parties
Risk management objectives, policies and processes for managing the risk
The principal customers of the Group are major oil and gas companies based in Malaysia.
Management reviews the credit worthiness of all major counterparties prior to entering into
any contract or transaction with them, to ensure the Group is not exposed to undue credit risk.
Deposits and cash and cash equivalents are placed with licensed banks and financial
institutions.
Exposure to credit risk, credit quality and collateral
As at the end of the reporting period, the maximum exposure to credit risk arising from
receivables is represented by their carrying amounts in the statement of financial position.
Cash and cash equivalents are only placed with licensed banks/institutions.
There are no significant concentrations of credit risk as at the end of the reporting period
other than trade receivable due from one (2014: one) counterparty of RM40,239,765 (2014:
RM60,908,489).
Ageing analysis
The ageing of trade receivables (exclude accrued revenue) as at the end of reporting period
is as follows:
Group
2015
2014
Age of debts
RM
RM
Not past due
85,297,393 58,199,876
Past due more 0-30 days
8,295,869 10,750,959
Past due more 31-90 days
2,332,939 9,322,522
Past due more 91-120 days
414,696 18,111,489
96,340,897 96,384,846
Management does not expect any external counterparty to fail to meet its obligations due
to the strong credit standing of the counterparties. There is no impairment loss recognised for
trade receivables as at the end of the reporting period.
Other investments
Risk management objectives, policies and processes for managing the risk
Investments are allowed only in liquid securities and only with counterparties that have a credit
rating equal to or better than the Group.
Notes to the
Financial Statements
(cont’d)
