DESTINI Annual Report 2018

Fair value Through profit or loss - held for trading Loans and receivables Other financial liabilities at amortised costs Total RM RM RM RM Company 2017 Financial Assets Investment in securities 1,923,981 - - 1,923,981 Other receivables - 16,529,199 - 16,529,199 Amount due from subsidiaries - 300,721,006 - 300,721,006 Cash and bank balances - 337,653 - 337,653 1,923,981 317,587,858 - 317,587,858 Financial Liabilities Other payables - - 573,207 573,207 Finance lease liabilities - - 10,700 10,700 Bank borrowings - - 57,947,662 57,947,662 - - 58,531,569 58,531,569 42. Financial Instruments (Cont’d) (a) Classification of financial instruments (Cont’d) (c) Financial risk management objectives and policies The Group’s financial risk management policy is to ensure that adequate financial resources are available for the development of the Group operations whilst managing its financial risks, including credit, liquidity, foreign currency, interest rate and market price risks. The Group operates within clearly defined guidelines that are approved by the Board and the Group’s policy is not to engage in speculative transactions. The following sections provide details regarding the Group’s exposure to the abovementioned financial risks and the objectives, policies and processes for the management of these risks. (i) Credit risk Credit risk is the risk of a financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Group’s exposure to credit risk arises principally from its receivables from customers and deposits with banks and financial institutions. The Company’s exposure to credit risk arises principally from loans and advances to subsidiaries and financial guarantees given to banks for credit facilities granted to subsidiaries. There are no significant changes as compared to prior periods. Group Company 2018 2017 2018 2017 RM RM RM RM Financial assets at FVTPL 657,260 (103,999) 657,260 (103,999) Net loss on impairment of financial instruments - Financial assets at amortised cost 1,666,359 1,713,054 - - (b) Net gain and losses arising from financial instruments DESTINI BERHAD ANNUAL REPORT 2018 193