Serba Dinamik Annual Report 2021

Registration No: 201501042584 (1167905-P) Serba Dinamik Holdings Berhad (Incorporated in Malaysia) 121 32. Financial risk management policies (continued) (a) Credit risk (continued) Other investments Risk management objectives, policies and processes for managing the risk Investments are allowed in liquid securities in licensed financial institutions and equity investments in both listed and non-listed entities. Exposure to credit risk, credit quality and collateral As at the end of the reporting period, the Group has invested in domestic securities, domestic and international equities accordingly. The maximum exposure to credit risk is represented by their carrying amounts in the statement of financial position. Other investments of the Group (see Note 10) are categorised as fair value through profit or loss. The Group does not have overdue investments that have not been impaired. The investments are unsecured. Cash and cash equivalents The cash and cash equivalents are held with banks and financial institutions. 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. These banks and financial institutions have low credit risks. In addition, some of the bank balances are insured by government agencies. Consequently, the Group and the Company are of the view that the loss allowance is not material and hence, it is not provided for. Intercompany balances Risk management objectives, policies and processes for managing the risk The Company provides unsecured loans and advances to subsidiaries and monitors the results of the subsidiaries regularly. Exposure to credit risk, credit quality and collateral As at the end of the reporting period, the maximum exposure to credit risk is represented by their carrying amounts in the statement of financial position and the Company do not recognise any allowance for impairment loss.