34. FINANCIAL INSTRUMENTS (CONTINUED) 34.4 Credit risk (continued) Inter-company balances (continued) Recognition and measurement of impairment losses (continued) The following table provides information about the exposure to credit risk and ECLs for subsidiaries’ loans and advances. Company Gross carrying amount RM’000 Loss allowances RM’000 Net balances RM’000 30.6.2022 Low credit risk 528,248 (1) 528,247 Significant increase in credit risk 30,821 (15,178) 15,643 Credit impaired 13,177 (13,177) – 572,246 (28,356) 543,890 30.6.2021 Low credit risk 208,289 (1) 208,288 Significant increase in credit risk 17,156 (15,178) 1,978 Credit impaired 12,313 (12,313) – 237,758 (27,492) 210,266 The movement in the allowance for impairment in respect of subsidiaries’ loans and advances during the year/ period are as follows: Company Lifetime ECL RM’000 Credit impaired RM’000 Total RM’000 Balance at 1 January 2020 6,373 – 6,373 Net remeasurement of loss allowance 8,806 12,313 21,119 Balance at 30 June 2021/1 July 2021 15,179 12,313 27,492 Net remeasurement of loss allowance – 864 864 Balance at 30 June 2022 15,179 13,177 28,356 34.5 Liquidity risk Liquidity risk is the risk that the Group and the Company will not be able to meet its financial obligations as they fall due. The Group’s and the Company’s exposure to liquidity risk arises principally from its various payables, loans and borrowings. 295 DNeX INTEGRATED REPORT 2022
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