NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 SECTION 4: FINANCIAL PERFORMANCE 200 33. FINANCIAL INSTRUMENTS (CONT’D) 33.2 Financial risk management objectives and policies (cont’d) Financial risk (cont’d) The main areas of financial risks faced by the Group and the Company and the policy in respect of the major areas of treasury activity are set out as follows (cont’d):- (a) Credit risk (cont’d) Following are the areas where the Group and the Company are exposed to credit risk (cont’d):- Trade receivables (cont’d) An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The provision rates are based on days past due for groupings of various customer segments with similar loss patterns. The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 10 to the financial statement. Set out below is the information about the credit risk exposure on the Group’s trade receivables using a provision matrix which are grouped together as they are expected to have similar risk nature:- Gross-carrying Loss- Net amount allowance balances Group RM’000 RM’000 RM’000 2024 Current (Not past due) 2,549 - 2,549 1-30 days past due 633 - 633 31-60 days past due 243 - 243 61-90 days past due 130 - 130 More than 90 days past due 98 (19) 79 3,653 (19) 3,634 2023 Current (Not past due) 5,519 - 5,519 1-30 days past due 2,566 - 2,566 31-60 days past due 1,556 - 1,556 61-90 days past due 2,067 - 2,067 More than 90 days past due 126 - 126 11,834 - 11,834
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