Notes To The Financial Statements (Cont’d) 31 March 2026 SECTION 05 : FINANCIAL STATEMENTS & OTHERS 136 Registration No: 58 199201005296 (236800 - T) 8. TRADE AND OTHER RECEIVABLES (continued) (b) Trade receivables are non-interest bearing and the normal trade credit terms granted by the Group and the Company ranged from 30 to 60 days (2025: 30 to 60 days). They are recognised at their original invoice amounts which represent their fair values on initial recognition. (c) The amounts due from subsidiaries represent advances and payments on behalf, which bear interest at 5% to 16% (2025: 5% to 16%) per annum and payable within next twelve (12) months in cash and cash equivalents. (d) The currency exposure profile of receivables (excluding prepayments) are as follows: Group Company 2026 2025 2026 2025 RM’000 RM’000 RM’000 RM’000 Ringgit Malaysia 2,066 2,205 33,570 37,416 US Dollar 17,155 1,863 - - British Pound * * - - 19,221 4,068 33,570 37,416 * The amount is immaterial to disclose. (e) Impairment for trade receivables that do not contain a significant financing component are recognised based on the simplified approach using the lifetime expected credit losses. The Group uses an allowance matrix to measure the expected credit loss of trade receivables from individual customers. Expected loss rates are calculated using the average historical bad debts write-offs rate and general rate based on the length of time invoices are overdue. During this process, the probability of non-payment by the trade receivables is adjusted by forward looking information. The Group believes that the financial impacts to the forward looking information are inconsequential for the purpose of impairment calculation of trade receivables due to their relatively short-term nature. For trade receivables, which are reported net, such impairments are recorded in a separate impairment account with the loss being recognised within administrative expenses in the consolidated statement 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. It requires management to exercise significant judgement in determining the probability of default by trade receivables and appropriate forward looking information. Expected credit loss allowance for trade receivables are as follows: Gross Group carrying Total Net amount allowance balance 2026 RM’000 RM’000 RM’000 Current (not past due) 6,605 - 6,605 Past due - 31 to 60 days 192 - 192 - More than 90 days 8,286 (183) 8,103 15,083 (183) 14,900
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