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37. FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)
Credit quality by class of financial assets (cont’d)
Aging analysis of past due but not impaired loans, advances and financing
Analysis of loans, advances and financing that are past due but not impaired based on the Group’s and the Bank’s internal
credit rating system are as follows:
2013
2012
RM’000
RM’000
1 months overdue
5,566
–
2 months overdue
6,416
617
3 months overdue
2,713
80,897
4 months overdue
108
–
5 months overdue
132
–
14,935
81,514
Restructured items
Restructured loans refer to the financial assets that would otherwise be past due or impaired where there is fundamental
revision in the principal terms and conditions of the facility. Restructuring shall be considered when the customer’s business
is still viable and is expected to remain viable after the restructuring. The total restructured loans held by the Group and the
Bank stood at RM167.8 million (2012: RM160.2 million).
Fair values
(i) Determination of fair values
The carrying amounts of cash and cash equivalents, other receivables and other payables approximate fair values due to
the relatively short term nature of these financial instruments.
Securities available-for-sale and securities held-to-maturity
The fair value of quoted securities is derived from market bid prices as at the reporting date. For unquoted securities,
the fair value is determined based on quotes from independent dealers or using valuation techniques such as the
discounted cash flows method.
Where discounted cash flows method is used, the estimated future cash flow shall include projections from liquidation,
realisation of collateral assets or estimates of future operating cash flow. The present value of the estimated future cash
flow (excluding future expected credit losses that have not yet been incurred) is discounted at the securities’ original
effective interest rate or at the current market rate of return for a similar financial asset.
As for investment in unquoted equity instruments that do not have a quoted market price in an active market, it is
impracticable to estimate the fair value due to the lack of comparable quoted market prices and inability to estimate the
fair value without incurring excessive costs.
NOTESTOTHEFINANCIALSTATEMENTS
31 DECEMBER 2013
180
EXIM Bank Annual Report 2013