193 32. FINANCIAL INSTRUMENTS (continued) (ii) Net gains/(losses) arising from financial instruments Group Company 2024 2023 2024 2023 RM’mil RM’mil RM’mil RM’mil Financial assets at amortised cost − Recognised in profit or loss 1 (25) 3 5 Financial liabilities at amortised cost − Recognised in profit or loss (467) (776) – – Financial instruments mandatorily at FVTPL − Recognised in profit or loss (193) 15 1 3 − Dividend income 1 – – – Financial instruments at FVOCI − Recognised in other comprehensive income – 47 – – Derivatives used for hedging − Recognised in other comprehensive income 25 – – – (633) (739) 4 8 (iii) Financial risk management The Group and the Company have exposures to the following risks from their financial instruments: • Credit risk • Liquidity risk • Market risk (iv) Credit risk Credit risk is the risk of a financial loss if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Group’s primary exposure to credit risk, arises principally through its trade receivables and investment in debt securities. The Company’s exposure to credit risk arises principally from its amounts due from subsidiaries. Trade receivables Risk management objectives, policies and processes for managing the risk The Group has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on major customers requiring credit over a certain amount. Self-pay customer may be requested to place an initial deposit or obtain a letter of guarantee at the time of admission to the hospital. Additional deposit is requested from the customer when the hospital charges exceed a certain level. At the end of each reporting date, the Group assesses whether any of the trade receivables are credit impaired. The gross carrying amounts of credit impaired trade receivables are written off (either partially or fully) when there is no realistic prospect of recovery. This is generally the case when the Group determines that the debtor does not have the assets or sources of income that could generate sufficient cash flows to repay the amount subject to the write-off. Nevertheless, trade receivables that are written off could still be subject to enforcement activities. There are no significant changes as compared to previous year.
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