ACCOUNTABILITY | NOTES TO THE FINANCIAL STATEMENTS 267 INTEGRATED ANNUAL REPORT 2026 44. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) (b) Credit risk (continued) (ii) Other financial assets at amortised cost (continued) The following table contains an analysis of the credit risk exposure for which an ECL allowance is recognised. The gross carrying amount disclosed below also represents the Group’s and the Company’s maximum exposure to credit risk on these assets: (continued) Company (continued) 2025 Performing RM million Underperforming RM million Nonperforming RM million Total RM million Other receivables (excluding amounts due from subsidiaries) Gross/Net carrying amount 5 - - 5 Amount due from subsidiaries Gross carrying amount 221 14 79 314 Accumulated impairment loss - (14) (78) (92) Net carrying amount 221 - 1 222 Cash and bank balances Gross/Net carrying amount 11 - - 11 The reconciliation of allowance for impairment of other receivables is disclosed in Note 25(b)(iv). (iii) Financial guarantee contracts The Company has issued financial guarantees to banks for borrowings of its subsidiaries. These guarantees are subject to the impairment requirements of MFRS 9. The amounts disclosed below represent the Company’s maximum exposure to credit risk on financial guarantee contracts. Company 2026 RM million 2025 RM million Financial guarantee contracts 379 3,718 The Company has assessed that its subsidiaries have strong financial capacity to meet the contractual cash flow obligations and hence, does not expect significant credit losses arising from these guarantees. (iv) Financial assets at fair value through profit or loss The Group is exposed to credit risk in relation to other investments and derivatives that are measured at fair value through profit or loss. The impact of this exposure has been assessed as immaterial for both the current and previous financial years. As at 31 January 2026, the credit risk of the Group primarily relates to the Group’s 5 (2025: 5) largest customers which accounted for 92% (2025: 90%) of the outstanding trade receivables, contract assets and finance lease receivables at the end of the reporting period. The Group believes the counterparties’ credit risk is low taking into consideration of their financial position, past collection experiences and other factors. Except for the impairment loss provided as disclosed in Note 25(a) to the financial statements, management does not expect any counterparty to fail to meet their obligations.
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