KENANGA ANNUAL REPORT 2017

42. COMMITMENTS AND CONTINGENCIES In the normal course of business, the Group and the Bank enter into various commitments and incur certain contingent liabilities with legal recourse to their customers. No material losses are anticipated as a result of these transactions. As at reporting date, the commitment and contingencies are as follows: Group Bank 2017 Principal amount RM’000 2016 Principal amount RM’000 2017 Principal amount RM’000 2016 Principal amount RM’000 Obligations under underwriting agreements – 9,380 – 9,380 Commitments to extend credit with maturity of less than 1 year: – share margin financing 1,662,114 1,656,405 1,662,114 1,656,405 – corporate loan 6,485 – 80,985 43,500 – foreign exchange related contract 50,111 44,858 50,111 44,858 – equity exchange related contract 157,823 127,966 157,823 127,966 Commitments to extend credit with maturity of more than 1 year: – corporate loan 26,000 347 56,000 25,347 – equity exchange related contract 1,460 1,145 1,460 1,145 Monies held in trust for client 728,134 665,738 728,134 665,738 Derivative financial assets (Note 9): – dual currency investment – options 18,114 17,407 18,114 17,407 – equity related contracts – options 111,305 93,636 111,305 93,636 – equity related contracts – swap 75,772 57,262 75,772 57,262 Derivative financial liabilities (Note 23): – dual currency investment – options 18,114 17,407 18,114 17,407 – equity related contracts – options 433,635 220,442 433,635 220,442 Capital commitment: – Authorised and contracted for 4,167 11,339 3,943 11,043 Investment in equity fund – – 13,792 – 3,293,234 2,923,332 3,411,302 2,991,536 Kenanga Investment Bank Berhad 31 December 2017 164 notes to the financial statements