GHL System Berhad Annual Report 2023

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2023 CONT’D 20. TRADE AND OTHER RECEIVABLES (Cont’d) (l) ECL assessment for non-financial institutions customers are as follows: (Cont’d) Gross carrying amount Impairment loss allowance Credit impaired RM RM 31 December 2022 Company Current (not past due) 324,190 - No More than 30 days past due 531,018 - No More than 60 days past due 356,493 - No More than 90 days past due 82,085 - No More than 120 days past due 3,685,812 (1,556,716) No 4,979,598 (1,556,716) (m) Impairment for other receivables are recognised based on the general approach within MFRS 9 using the forward-looking expected credit loss model. The methodology used to determine the amount of the impairment is based on whether there has been a significant increase in credit risk since initial recognition of the financial asset. At the end of the reporting period, the Group assesses whether there has been a significant increase in credit risk for financial assets by comparing the risk of default occurring over the expected life with the risk of default since initial recognition. For those in which the credit risk has not increased significantly since initial recognition of the financial asset, twelve-month expected credit losses along with gross interest income are recognised. For those in which credit risk has increased significantly, lifetime expected credit losses along with the gross interest income are recognised. For those that are determined to be credit impaired, lifetime expected credit losses along with interest income on a net basis are recognised. The Group defined significant increase in credit risk when a counterparty’s financial position deteriorates significantly. The Group considers other receivables to be in default when the counterparty is not able to pay when demanded. The probability of non-payment by other receivables is adjusted by forward-looking information and multiplied by the amount of the expected loss arising from default to determine the twelve-month or lifetime expected loss for the amounts of other 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. It requires management to exercise significant judgement in determining the probability of default of other receivables, appropriate forward-looking information and significant increase in credit risk. (n) 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. (o) During the financial year, the Group did not renegotiate the term of any trade receivables. 137 ANNUAL REPORT 2023

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