Dagang NeXchange Berhad Annual Report 2018

30. FINANCIAL INSTRUMENTS (CONTINUED) 30.1 Categories of financial instruments (continued) Carrying amount FL 2017 RM’000 RM’000 Financial liabilities Group Trade and other payables (excluding deferred income) 43,513 43,513 Loans and borrowings 20,000 20,000 63,513 63,513 Company Trade and other payables (excluding deferred income) 3,761 3,761 Amount due to subsidiaries 593 593 4,354 4,354 30.2Net gains and losses from financial instruments Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Net gains/(losses) on: Equity investments designated at fair value through other comprehensive income (734) - - - Financial assets measured at amortised cost (1,596) - 10,876 - Loans and receivables - (329) - - (2,330) (329) 10,876 - 30.3 Financial risk management The Group has exposure to the following risks from its financial instruments: • Credit risk • Liquidity risk • Market risk 30.4 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 exposure to credit risk arises principally from the individual characteristics of each customer. The Company’s exposure to credit risk arises principally from loans and advances to subsidiaries and financial guarantees given to banks for credit facilities granted to subsidiaries. There are no significant changes as compared to prior periods. 163 Annual Report 2018 Notes to the Financial Statements (CONTINUED) FINANCIAL STATEMENTS