NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2024 (CONT’D) 43. FINANCIAL INSTRUMENTS (CONT’D) 43.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D) (b) Credit Risk (Cont’d) (iii) Assessment of Impairment Losses (Cont’d) Amount Owing By Subsidiaries The Company also applies the 3-stage general approach to measuring expected credit losses for all intercompany balances. Inputs, Assumptions and Techniques used for Estimating Impairment Losses The Company measures the expected credit losses on an individual basis, which is aligned with its credit risk management practices on the inter-company balances. The Company considers loans and advances to subsidiaries have low credit risks. The Company assumes that there is a significant increase in credit risk when a subsidiary’s financial position deteriorates significantly. For loans and advances that are repayable on demand, impairment loss is assessed based on the assumption that repayment of the outstanding balances is demanded at the reporting date. If the subsidiary does not have sufficient highly liquid resources when the loans and advances are demanded, the Company will consider the expected manner of recovery to measure the impairment loss; the recovery manner could be either through ‘repayable over time’ or a fire sale of less liquid assets by the subsidiary. For loans and advances that are not repayable on demand, impairment loss is measured using techniques that are similar for estimating the impairment losses of other receivables as disclosed above. There are no significant changes in the estimation techniques and assumptions as compared to the previous financial year. Allowance for Impairment Losses LIFETIME GROSS LOSS CARRYING AMOUNT ALLOWANCE AMOUNT THE COMPANY RM’000 RM’000 RM’000 2024 Low credit risk 838,735 – 838,735 Credit impaired 167,111 (167,111) – 1,005,846 (167,111) 838,735 2023 Low credit risk 878,183 – 878,183 Credit impaired 154,580 (154,580) – 1,032,763 (154,580) 878,183 The movements in the loss allowances are disclosed in Note 13 to the financial statements. FINANCIAL STATEMENTS MATRIX CONCEPTS HOLDINGS BERHAD 212
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