Annual Report
2015
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DAYANG ENTERPRISE HOLDINGS BHD
(712243-U)
125
32. Financial instruments (cont’d)
32.3 Financial risk management (cont’d)
(a) Credit risk (cont’d)
Other investments (cont’d)
Exposure to credit risk, credit quality and collateral
As at the end of the reporting period, the Group has only invested in domestic securities. The
maximum exposure to credit risk is represented by their carrying amounts in the statement of
financial position.
Other investments of the Group (see Note 13) are categorised as fair value through profit or
loss. The Group does not have overdue investments that have not been impaired.
The investments are unsecured.
Inter-company balances
Risk management objectives, policies and processes for managing the risk
The Company provides unsecured loans and advances to subsidiaries and monitors the results
of the subsidiaries regularly.
Exposure to credit risk, credit quality and collateral
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.
Credit risk of the Company as at the end of the reporting period arose solely from the amount
due from two (2014: three) subsidiaries of RM72,719,836 (2014: RM149,663,565).
Impairment losses
As at the end of the reporting period, there was no indication that the loans and advances to
subsidiaries are not recoverable in full and as such no impairment loss has been recognised.
Financial guarantees
Risk management objectives, policies and processes for managing the risk
The Company provides unsecured financial guarantees to banks in respect of banking
facilities granted to certain subsidiaries. The Company monitors on an ongoing basis the results
of the subsidiaries and repayments made thereby to ensure that they are able to meet their
obligations as they fall due.
Notes to the
Financial Statements
(cont’d)
