Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Chatgpt And Future Of Blockchain

Authors: Richard Thumser

1st Edition

979-8370852664

More Books

Students also viewed these Finance questions

Question

Write a note on AGMARK.

Answered: 1 week ago

Question

Plan merit and demerits ?

Answered: 1 week ago

Question

Essential Elements of map ?

Answered: 1 week ago

Question

Evaluate common feachers of social reform movement in Kerala?

Answered: 1 week ago