MY E.G. SERVICES BERHAD Registration No. 200001003034 (505639-K) 236 NOTES TO THE FINANCIAL STATEMENTS ʹˢ˥ ˧˛˘ Ѓˡ˔ˡ˖˜˔˟ ˬ˘˔˥ ˘ˡ˗˘˗ ʦʤ ʷ˘˖˘ˠ˕˘˥ ʥʣʥʤ (CONT’D) 48. FINANCIAL INSTRUMENTS (CONT’D) 48.1 FINANCIAL RISK MANAGEMENT POLICIES (cont’d) (b) Credit Risk (cont’d) (i) Credit Risk Concentration Profile The Group’s major concentration of credit risk relates to the amount owing by 2 customers which constitutes approximately 25% of its trade and financing receivables as at end of the reporting period. In addition, the Group also determines the concentration of credit risk by monitoring, on an ongoing basis, its trade and financing receivables based on the countries where the customer has operations. The credit risk concentration profile of trade and financing receivables at the end of the reporting period is as follows:- The Group The Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Malaysia 594,002 338,464 2,128 1,003 Outside Malaysia 16,050 63,950 - - 610,052 402,414 2,128 1,003 (ii) Maximum Exposure to Credit Risk At the end of the reporting period, the maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statement of financial position of the Group and of the Company after deducting any allowance for impairment losses (where applicable). In addition, the Company’s maximum exposure to credit risk also includes corporate guarantees provided to its subsidiaries of RM20,539,984 (2020 - RM24,408,214) representing the outstanding banking facilities of the subsidiaries as at the end of the reporting period. (iii) Assessment of Impairment Losses At each reporting date, the Group assesses whether any of the financial assets at amortised cost are credit impaired. The gross carrying amounts of financial assets are written off when there is no reasonable expectation of recovery (i.e. the debtor does not have assets or sources of income to generate sufficient cash flows to repay the debt) despite the fact that they are still subject to enforcement activities. A financial asset is credit impaired when any of following events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred: - Significant financial difficulty of the receivable; - A breach of contract, such as a default or past due event; - Restructuring of a debt in relation to the receivable’s financial difficulty; and - It is becoming probable that the receivable will enter bankruptcy or other financial reorganisation.
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