Registration No. 200301030845 (633265-K) - 132 - 36. Financial Instruments (Cont’d) (b) Financial risk management objectives and policies (Cont’d) (i) Credit risk (Cont’d) At each reporting date, the Group and the Company assess whether any of the receivables and contract assets are credit impaired. The gross carrying amounts of credit impaired trade receivables and contract assets 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 and contract assets 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 at the end of the financial year represent the Group’s and the Company’s maximum exposure to credit risk except for financial guarantees provided to banks for banking facilities granted to certain subsidiaries. The Company’s maximum exposure in this respect is RM56,550,052 (2025: RM62,023,144), representing the outstanding banking facilities of the subsidiaries as at the end of the reporting period. There was no indication that any subsidiary would default on repayment as at the end of the reporting period. 2026 2025 RM RM Countries Malaysia 195,715,843 148,223,707 Singapore 5,908,832 27,287,107 China 465,360 517,810 202,090,035 176,028,624 Group Financial guarantee The Group provides secured bankers’ guarantee in favour of the local authorities and third parties in respect of contracts entered into by subsidiary companies. The maximum exposure of credit risk amounted to RM56,550,052 (2025: RM62,023,144). There was no indication that the guarantee will be called upon. DESTINI BERHAD 245 ANNUAL REPORT 2026
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