15. TRADE AND OTHER RECEIVABLES (continued) (f) Credit risk and impairment policy for trade receivables (continued) The movements in the allowance for impairment in respect of trade and other receivables during the financial year are shown below: Lifetime Credit Group ECL impaired Total RM’000 RM’000 RM’000 Trade Balance as at 1 September 2023 2,496 173 2,669 Reversal of impairment losses (421) (12) (433) Balance as at 31 August 2024/ 1 September 2024 2,075 161 2,236 Net remeasurement of impairment losses (666) 70 (596) Balance as at 31 August 2025 1,409 231 1,640 Lifetime ECL Group Company RM’000 RM’000 Non-trade Balance as at 1 September 2023 - 3,081 Net remeasurement of loss allowance 82 29 Balance as at 31 August 2024/1 September 2024 82 3,110 Net remeasurement of impairment losses (68) (31) Receivables written off (14) - Balance as at 31 August 2025 - 3,079 (g) Credit risk and impairment policy for amounts due from subsidiaries and other receivables As at the end of the reporting period, the maximum credit risk exposure is equivalent to the carrying amounts of amounts due from subsidiaries and other receivables of the Group and of the Company. The Group and the Company monitor the ability of the subsidiaries and other receivables to repay on an individual basis. These amounts are not secured by any collateral or supported by any other credit enhancements. Generally, the Group and the Company consider amounts due from subsidiaries and other receivables to have low credit risk. The Group and the Company assume that there is a significant increase in credit risk when a subsidiary’s and other receivables’ financial position deteriorates significantly or when the counterparty is unable to pay when demanded. As the Company is able to determine the timing of payments of the amount due from subsidiaries when they are payable, the Company considers these to be in default when the subsidiaries are not able to pay when demanded. It is considered to be credit impaired when: i) The subsidiary is unlikely to repay its amount due to the Company in full; or ii) The subsidiary is continuously loss making and is having a deficit shareholders’ fund. The Group and the Company have exercised judgement in determining the probability of default for these amounts due, by obtaining reasonable and supportable information, both quantitative and qualitative, including historical experience that is available without undue cost or effort. SASBADI HOLDINGS BERHAD Financial Statements (conঞ nued) 126
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