Notes To The Financial Statements 31 March 2024 (Cont’d) 141 FINANCIAL STATEMENTS & OTHERS 10. TRADE AND OTHER RECEIVABLES (CONT’D) (e) Impairment for trade receivables that do not contain a significant financing component are recognised based on the simplified approach using the lifetime expected credit losses. The Group uses an allowance matrix to measure the expected credit loss of trade receivables from individual customers. Expected loss rates are calculated using the average historical bad debts writeoffs rate and general rate based on the length of time invoices are overdue. During this process, the probability of non-payment by the trade receivables is adjusted by forward looking information. The Group believes that the financial impacts to the forward-looking information are inconsequential for the purpose of impairment calculation of trade receivables due to their relatively short-term nature. For trade receivables, which are reported net, such impairments are recorded in a separate impairment account with the loss being recognised within administrative expenses in the consolidated statement of profit or loss and other comprehensive income. On confirmation that the trade receivable would not be collectable, the gross carrying value of the asset would be written off against the associated impairment. It requires management to exercise significant judgement in determining the probability of default by trade receivables and appropriate forward-looking information. Expected credit loss allowance for trade receivables are as follows: Gross Group carrying Total Net amount allowance balance 2024 RM’000 RM’000 RM’000 Current (not past due) 877 * 877 Past due - 1 to 30 days - * - - 31 to 60 days - - - - 61 to 90 days 509 * 509 - More than 90 days - * - 1,386 * 1,386 2023 Current (not past due) 3,405 * 3,405 Past due - 1 to 30 days 31 * 31 - 31 to 60 days - - - - 61 to 90 days 1,013 * 1,013 - More than 90 days - * - 4,449 * 4,449 * The amount is immaterial to disclose. (f) As at the end of each reporting period, no collateral has been obtained by the Group. Thus, the maximum credit risk exposure is equivalent to the gross carrying amount of trade receivables of the Group. (g) During the financial year, the Group did not renegotiate the terms of any trade receivables.
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