My EG Services Berhad Annual Report 2021

MY E.G. SERVICES BERHAD Registration No. 200001003034 (505639-K) 240 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) (iii) Assessment of Impairment Losses (cont’d) The Company (cont’d) Amount Owing By Associates (cont’d) Allowance for Impairment Losses (cont’d) Gross Amount Lifetime Loss Allowance Carrying Amount The Company RM’000 RM’000 RM’000 2021 Low credit risk # - # Credit Impaired 72,555 (72,555) - 72,555 (72,555) # 2020 Low credit risk # - # Credit Impaired 72,555 (72,555) - 72,555 (72,555) # # - The amount is less than RM1,000 Fixed Deposits with Licensed Banks, Cash and Bank Balances The Group considers these banks and financial institutions to have low credit risks. In addition, some of the bank balances are insured by Government agencies. Therefore, the Group is of the view that the loss allowance is immaterial and hence, it is not provided for. Amount Owing By Subsidiaries (Non-trade Balances) The Company applies the 3-stage general approach to measuring expected credit losses for all the inter-company balances. Inputs, Assumptions and Techniques used for Estimating Impairment Losses The Company measures the expected credit losses on individual basis, which is aligned with its credit risk management practices on the inter-company balances. The Company considers loans and advances to subsidiaries have low credit risks. The Company assumes that there is a significant increase in credit risk when a subsidiary’s financial position deteriorates significantly.

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