Registration No. 200301030845 (633265-K) - 134 - 38. Financial Instruments (Cont’d) (b) Financial risk management objectives and policies (Cont’d) (i) Credit risk (Cont’d) At each reporting date, the Group and the Company assess whether any if the receivables and contract assets are credit impaired. The gross carrying amounts of credit impaired trade receivables and contract assets are written off (either partial or full) when there is no realistic prospect of recovery. This is generally the case when the Group or the Company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. Nevertheless, trade receivables and contract assets that are written off could still be subject to enforcement activities. The carrying amounts of the financial assets recorded on the statements of financial position at the end of the financial year represent the Group’s and the Company’s maximum exposure to credit risk except for financial guarantees provided to banks for banking facilities granted to certain subsidiaries. The Company’s maximum exposure in this respect is RM 9,905,270 (30.06.2024: RM9,483,167), representing the outstanding banking facilities of the subsidiaries as at the end of the reporting period. There was no indication that any subsidiary would default on repayment as at the end of the reporting period. Financial guarantee The Group provides secured bankers’ guarantee in favour of the local authorities and third parties in respect of contracts entered into by subsidiary companies. The maximum exposure of credit risk amounted to RM15,377,641 (30.06.2024: RM14,362,905). There was no indication that the guarantee will be called upon. Intercompany loan advances The Company provides unsecured loans and advances to subsidiaries. The Company monitors the results of the subsidiaries regularly. As at the end of the reporting period, the maximum exposure to credit risk is represented by their carrying amounts in the statements of financial position. As at the end of the reporting period, there was no indication that the loans and advances to the subsidiaries are not recoverable. The Company does not specifically monitor the ageing of current advances to the subsidiaries. DESTINI BERHAD ANNUAL REPORT 2025 217
RkJQdWJsaXNoZXIy NDgzMzc=