Notes to the Financial Statements for the Financial Year Ended 30 September 2024 MKH BERHAD ANNUAL REPORT 2024 Laying The Foundation of Excellence Where People Matter Guided by Leadership, Inspired by People Delivering Value That Matters to People PG. 294 43. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D) (i) Credit risk (Cont’d) The Group determines concentrations of credit risk by monitoring the country of its trade receivables on an ongoing basis. The credit risk concentration profile of the Group’s net trade related receivables at the reporting date are as follows: The Group 2024 2023 RM % of total RM % of total By country: Malaysia 150,326,435 98.19% 136,901,003 97.92% Republic of Indonesia 2,751,217 1.80% 2,625,722 1.88% The Peoples’ Republic of China 16,893 0.01% 282,672 0.20% 153,094,545 100.00% 139,809,397 100.00% At the reporting date, the Group has no significant concentration of credit risk on trade receivables, except for an individual customer with balance amounting to RM38,500,000 (2023: RM38,500,000), representing 25% (2023: 28%) of the total trade receivable balances. Financial guarantees The Company provides unsecured financial guarantees to banks in respect of banking facilities granted to subsidiaries and creditors for credit terms granted to subsidiaries and an associate. The Company monitors on an ongoing basis the repayments made by the subsidiaries and their financial performance. The maximum exposure to credit risk amounts to RM358,732,483 (2023: RM316,177,704) representing the outstanding credit facilities of the subsidiaries guaranteed by the Company at the reporting date. At the reporting date, there was no indication that the subsidiaries would default on their repayment.
RkJQdWJsaXNoZXIy NDgzMzc=