159 ENRA GROUP BERHAD ANNUAL REPORT 2025 Notes To The Financial Statements (Cont’d) 31 March 2025 Registration No: 63 199201005296 (236800 - T) 9. TRADE AND OTHER RECEIVABLES (continued) (i) (continued) Generally, the Company considers loans and advances to subsidiaries have low credit risk. The Company assumes that there is a significant increase in credit risk when a subsidiary’s financial position deteriorates significantly. As the Company is able to determine the timing of payments of the subsidiaries’ loans and advances when they are payable, the Company considers the loans and advances to be in default when the subsidiaries are not able to pay when demanded. The Company considers a subsidiary’s loan or advance to be credit impaired when: - The subsidiary is unlikely to repay its loans or advances to the Company in full; - The subsidiary’s loan or advance is overdue for more than 120 days; or - The subsidiary is continuously loss making and is having a deficit shareholders’ fund. The Company determines the probability of default for these intercompany loans and advances using internal information available. It requires management to exercise its judgement in determining the probabilities of default by other receivables and subsidiaries, appropriate forward-looking information (gross domestic product (“GDP”)) and significant increase in credit risk. During the year, the Company recognised an impairment loss on amounts owing from subsidiaries of RM146,000 (2024: RM843,000). The movements in allowance for impairment losses of amounts owing by subsidiaries during the year were as follows: Amounts owing by subsidiaries Lifetime ECL Specific Total allowance allowance allowance Company RM’000 RM’000 RM’000 At 1 April 2024 1,880 2,382 4,262 Charge for the year - 146 146 At 31 March 2025 1,880 2,528 4,408 At 1 April 2023 1,880 1,539 3,419 Charge for the year - 843 843 At 31 March 2024 1,880 2,382 4,262 Specific allowance refer to individually determined debtors who are in significant financial difficulties and have defaulted on payments to be impaired as at the end of the reporting period. (i) Information on financial risks of trade and other receivables is disclosed in Note 31 to the financial statements.
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