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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
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. 3 AMOUNT TENURE CONTRACT FACILITY Cash Line Working Capital PURPOSE To finance working capital RM 500,000 3 years Tawarruq Fixed asset financing RM2,000,000 12 years Tawarruq To finance the purchase of the factory. (1) 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 Malaysia, dated 16 April 2015. (2 marks) (ii) The customer made payment on the overdues amount on 30 September 2020. Subsequently, the payment is up-to-date every month with no arrears. Customer has been prompt in servicing its installment. However, during a site visit on 30 November 2020, it was found that the factory was closed. The factory's phone number and directors also could not be contacted. Further checking with the other nearest factory revealed that the factory has been abandoned for one year. Explain the status of the financing as at 30 November 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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