Sasbadi Annual Report 2019

PAGE 122 SASBADI HOLDINGS BERHAD FINANCIAL STATEMENTS (continued) 23. Financial instruments (continued) 23.2 Net gains and losses arising from financial instruments Group Company 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Net gain/(loss) on: Equity instruments designated at fair value through other comprehensive income 7 - - - Financial assets measured amortised cost (456) - 1 - Financial liabilities at fair value through profit or loss (2,905) - - - Loans and receivables - (1,888) - 1 Financial liabilities measured at amortised cost - (2,995) - - Available-for-sale financial assets - 19 - - (3,354) (4,864) 1 1 23.3 Financial risk management The Group has exposures to the following risks from its use of financial instruments: x Credit risk x Liquidity risk x Market risk 23.4 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, whilst the Company’s credit exposure arises principally from its loans and advances to its subsidiaries. There are no significant changes as compared to prior periods.