ENRA Group Berhad Annual Report 2021

FINANCIAL STATEMENTS & OTHERS Annual Report 2021 | ENRA Group Berhad 141 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2021 13. TRADE AND OTHER RECEIVABLES (cont’d) (j) (Cont’d) Generally, the Company considers loans and advances to subsidiaries have low credit risk. The Company assumes that there is a significant increase in credit risk when a subsidiary’s financial position deteriorates significantly. As the Company is able to determine the timing of payments of the subsidiaries’ loans and advances when they are payable, the Company considers the loans and advances to be in default when the subsidiaries are not able to pay when demanded. The Company considers a subsidiary’s loan or advance to be credit impaired when: - The subsidiary is unlikely to repay its loans or advances to the Company in full; - The subsidiary’s loan or advance is overdue for more than 120 days; or - The subsidiary is continuously loss making and is having a deficit shareholders’ fund. The Company determines the probability of default for these intercompany loans and advances using internal information available. It requires management to exercise its judgement in determining the probabilities of default by other receivables and subsidiaries, appropriate forward-looking information (gross domestic product (GDP)) and significant increase in credit risk, including the effects of COVID-19 pandemic. No expected credit loss is recognised arising from other receivables and amounts owing by subsidiaries as it is negligible. Movements in the impairment allowance for amount due from an associate are as follows: Lifetime ECL 12-month - not credit Group ECL impaired Total RM’000 RM’000 RM’000 At 1 April 2019 – – – Charge for the financial year 2,241 – 2,241 At 31 March 2020/1 April 2020 2,241 – 2,241 Written off during the year (2,241) – (2,241) At 31 March 2021 – – – (k) Information on financial risks of trade and other receivables is disclosed in Note 40 to the financial statements.