DAYANG ENTERPRISE HOLDINGS BHD
(712243-U)
|
Annual Report
2015
126
32. Financial instruments (cont’d)
32.3 Financial risk management (cont’d)
(a) Credit risk (cont’d)
Exposure to credit risk, credit quality and collateral
The maximum exposure to credit risk amounts to RM1,805,191,172 (2014: RM153,869,563)
representing the outstanding banking facilities of the subsidiaries as at the end of the reporting
period.
As at the end of the reporting period, there was no indication that any subsidiary would default
on repayment.
The financial guarantees have not been recognised since the fair value on initial recognition
was not material.
(b) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they
fall due. The Group’s exposure to liquidity risk arises principally from its various payables, loans
and borrowings as well as financial guarantees given to banks for credit facilities granted to
subsidiaries.
Risk management objectives, policies and processes for managing the risk
The Group maintains a level of cash and cash equivalents and bank facilities deemed
adequate by the management to ensure, as for as possible, that it will have sufficient liquidity
to meet its liabilities as they fall due.
It is not expected that the cash flows included in the maturity analysis could occur significantly
earlier, or at significantly different amounts.
Notes to the
Financial Statements
(cont’d)
