Maju Sdn Bhd was established in 2015 and manufactures cooking oil for the local market.(a)On 01 March 2019, the company obtained the following financing package from CCB BankBerhad to finance its business expansion.FACILITYAMOUNTTENURECONTRACTPURPOSECash LineWorkingСapitalTo finance workingcapitalRM 500,0003 yearsТawarruqТоfinancetheFixed assetTawarruq12 yearspurchasefactory.RM2,000,000ofthefinancingRepayment for the fixed asset financing was due every 25th of the month. Last installmentwas paid on 30 June 2020. Subsequently, no payment was made on 31 July 2020 and 31 August(i)2020.Explain the status of the financing as at 31 August 2020, in accordance with the Guidelines forClassification and Impairment Provisions for Loans/Financing issued by the Central Bank ofMalaysia, dated 16 April 2015.

The Classification of loan and advance as performing as non impaired or nonperforming as impaired…

(a) Maju Sdn Bhd was established in 2015 and manufactures cooking oil for the local market. On 01 March 2019, the company obtained the following financing package from CCB Bank Berhad to finance its business expansion. FACILITY Cash Line Working Capital Fixed asset financing AMOUNT RM 500,000 RM2,000,000 TENURE CONTRACT 3 years 12 years Tawarruq Tawarruq PURPOSE To finance working capital To finance the purchase of the factory. (i) Repayment for the fixed asset financing was due every 25th of the month. Last installment was paid on 30 June 2020. Subsequently, no payment was made on 31 July 2020 and 31 August 2020. Explain the status of the financing as at 31 August 2020, in accordance with the Guidelines for Classification and Impairment Provisions for Loans/Financing issued by the Central Bank of

(a) Maju Sdn Bhd was established in 2015 and manufactures cooking oil for the local market. On 01 March 2019, the company obtained the following financing package from CCB Bank Berhad to finance its business expansion. FACILITY Cash Line Working Capital Fixed asset financing AMOUNT RM 500,000 RM2,000,000 TENURE CONTRACT 3 years 12 years Tawarruq Tawarruq PURPOSE To finance working capital To finance the purchase of the factory. (i) Repayment for the fixed asset financing was due every 25th of the month. Last installment was paid on 30 June 2020. Subsequently, no payment was made on 31 July 2020 and 31 August 2020. Explain the status of the financing as at 31 August 2020, in accordance with the Guidelines for Classification and Impairment Provisions for Loans/Financing issued by the Central Bank of

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Maju Sdn Bhd was established in 2015 and manufactures cooking oil for the local market.
(a)
On 01 March 2019, the company obtained the following financing package from CCB Bank
Berhad to finance its business expansion.
FACILITY
AMOUNT
TENURE
CONTRACT
PURPOSE
Cash Line
Working
Сapital
To finance working
capital
RM 500,000
3 years
Тawarruq
То
finance
the
Fixed asset
Tawarruq
12 years
purchase
factory.
RM2,000,000
of
the
financing
Repayment for the fixed asset financing was due every 25th of the month. Last installment
was paid on 30 June 2020. Subsequently, no payment was made on 31 July 2020 and 31 August
(i)
2020.
Explain the status of the financing as at 31 August 2020, in accordance with the Guidelines for
Classification and Impairment Provisions for Loans/Financing issued by the Central Bank of
Malaysia, dated 16 April 2015.

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