ANNUAL REPORT 2025 FINANCIAL STATEMENTS Notes to the Financial Statements (Cont’d) For the Financial Year Ended 31 March 2025 187 52. FINANCIAL INSTRUMENTS (CONT’D) 52.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D) (b) Credit Risk (Cont’d) (ii) Maximum Exposure to Credit Risk At the end of the financial year, the maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statement of financial position of the Group and of the Company after deducting any allowance for impairment losses (where applicable). In addition, the Company’s maximum exposure to credit risk also includes corporate guarantees provided to its subsidiaries of approximately RM49,587,000 (2024 - RM57,888,000), representing the outstanding banking facilities of the subsidiaries as at the end of the reporting period. These corporate guarantees have not been recognised in the Company’s financial statements since their fair values on initial recognition were not material. (iii) Assessment of Impairment Losses At each reporting date, the Group assesses whether any of financial assets at amortised cost are credit impaired. The gross carrying amounts of those financial assets are written off when there is no reasonable expectation of recovery (i.e. the debtor does not have assets or sources of income to generate sufficient cash flows to repay the debt) despite the fact that they are still subject to enforcement activities. Trade Receivables The Group applies the simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The Group considers any receivables having financial difficulty or with significant balances outstanding past due and more than 365 days are deemed credit impaired. The expected loss rates are based on the payment profiles of sales over a period of 12 months from the measurement date and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle their debts. The information about the exposure to credit risk and the loss allowances calculated under MFRS 9 for trade receivables (excluding accrued income) is summarised below:- Lifetime Gross Loss Collective Carrying Amount Allowance Impairment Value Group RM’000 RM’000 RM’000 RM’000 2025 Current (not past due) 46,996 - - 46,996 Past due: - 31 to 60 days 11,919 - - 11,919 - 61 to 90 days 23,879 - - 23,879 - over 90 days 64,131 - (213) 63,918 99,929 - (213) 99,716 146,925 - (213) 146,712 Credit impaired: - individually impaired 10,002 (10,002) - - 156,927 (10,002) (213) 146,712
RkJQdWJsaXNoZXIy NDgzMzc=