117 Annual Report 2025 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2025 (CONT’D) 35. FINANCIAL INSTRUMENTS (CONT’D) (b) Net gains and losses arising from financial instruments Group Company 2025 2024 2025 2024 RM RM RM RM Net gains/ (losses) on: Financial assets measured at amortised cost 177,857 238,248 84,448 141,814 Financial liabilities measured at amortised cost (366,860) (131,793) (323,010) (101,098) Equity instruments at FVTOCI - Recognised in other comprehensive income (4,650,000) 11,886,315 (4,650,000) 11,886,315 (4,839,003) 11,992,770 (4,888,562) 11,927,031 (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’s operations whilst managing its credit, liquidity, interest rate and foreign currency 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 above-mentioned 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 its receivables from customers and deposits with banks and financial institutions. There are no significant changes as compared to prior years. The Group and the Company have adopted a policy of only dealing with creditworthy counterparties. Management has a credit policy in place to control credit risk by dealing with creditworthy counterparties and deposits with banks and financial institutions with good credit rating. The exposure to credit risk is monitored on an ongoing basis and action will be taken for long outstanding debts. At each reporting date, the Group and the Company assess whether any of the receivables are credit impaired. The gross carrying amounts of credit impaired trade receivables 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 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 as at the reporting date represents the Group’s and the Company’s maximum exposure to credit risk. There are no significant changes as compared to previous financial year. Credit risk concentration As at the end of financial year, the Group has 2 customers (2024: 2 customers) that accounted for approximately 56% (2024: 49%) of all receivables outstanding.
RkJQdWJsaXNoZXIy NDgzMzc=