GHL System Berhad Annual Report 2023

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2023 CONT’D 20. TRADE AND OTHER RECEIVABLES (Cont’d) (k) Expected credit loss assessment (“ECL”) for financial institution customers are as follows: (Cont’d) The following table provides information about the exposure to credit risk and ECLs for trade receivables for financial institutions customers. Gross carrying amount Impairment loss allowance Credit impaired RM RM 31 December 2023 Group Grades (Low risk) 129,602,402 (106,495) No Grades (Loss) 72,648 (72,648) Yes 129,675,050 (179,143) Company Grades (Low risk) 1,950,920 (8) No Grades (Loss) 704 (704) Yes 1,951,624 (712) 31 December 2022 Group Grades (Low risk) 65,332,412 (79,673) No Grades (Loss) 131,650 (131,650) Yes 65,464,062 (211,323) Company Grades (Low risk) 98,212 (8) No Grades (Loss) 704 (704) Yes 98,916 (712) (l) ECL assessment for non-financial institutions customers are as follows: The Group uses an allowance matrix to measure the expected credit loss of trade receivables from nonfinancial institutions customers. Expected loss rates are calculated using the roll rate method separately for exposures in different segments based on the following common credit risk characteristics - geographic region, age of customer relationship and type of product purchased. During this process, the probability of non-payment by the trade receivables is adjusted by forwardlooking information and multiplied by the amount of the expected loss arising from default to determine the lifetime expected credit loss for the trade receivables. 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. 135 ANNUAL REPORT 2023

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