134 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2021 CONT’D 20. TRADE AND OTHER RECEIVABLES (Cont’d) (j) Expected credit loss assessment (“ECL”) for financial institution customers are as follows: (Cont’d) The following table provides information about the exposure to credit risk and ECLs for trade receivables for financial institutions customers. Gross carrying amount Impairment loss allowance Credit impaired RM RM 31 December 2021 Group Grades (Low risk) 44,932,578 (393,246) No Grades (Loss) 239,474 (239,474) Yes 45,172,052 (632,720) Company Grades (Low risk) 83,424 - No Grades (Loss) 152,280 (152,280) Yes 235,704 (152,280) 31 December 2020 Group Grades (Low risk) 23,836,531 (82,580) No Grades (Loss) 251,024 (251,024) Yes 24,087,555 (333,604) Company Grades (Low risk) 307,162 (1,536) No Grades (Loss) 148,570 (148,570) Yes 455,732 (150,106) (k) ECL assessment for non-financial institutions customers are as follows: The Group uses an allowance matrix to measure the expected credit loss of trade receivables from nonfinancial institutions customers. Expected loss rates are calculated using the roll rate method separately for exposures in different segments based on the following common credit risk characteristics - geographic region, age of customer relationship and type of product purchased. During this process, the probability of non-payment by the trade receivables is adjusted by forwardlooking information and multiplied by the amount of the expected loss arising from default to determine the lifetime expected credit loss for the trade receivables. For trade receivables, which are reported net, such impairments are recorded in a separate impairment account with the loss being recognised in the statements of profit or loss and other comprehensive income. On confirmation that the trade receivable would not be collectable, the gross carrying value of the asset would be written off against the associated impairment.
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