YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 308 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 January 2024 41. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) (b) Credit risk (continued) (ii) Other financial assets at amortised cost (continued) Based on the above, loss allowance is measured on either 12-month ECL or lifetime ECL using a PD x LGD x EAD methodology as follows: • PD (‘probability of default’) – the likelihood that the debtor would not be able to repay during the contractual period; • LGD (‘loss given default’) – the percentage of contractual cash flows that will not be collected if default happens; and • EAD (‘exposure at default’) – the outstanding amount that is exposed to default risk. In deriving the PD and LGD, the Group and the Company consider historical data by each debtor by category and adjust for forward-looking macroeconomic data. The Group and the Company have identified the industry and geographical area which the debtor operates in, to be the most relevant factors, and accordingly adjusted the historical loss rates based on expected changes in these factors. Loss allowance is measured at a probabilityweighted amount that reflects the possibility that a credit loss occurs and the possibility that no credit loss occurs. No significant changes to estimation techniques or assumptions were made during the reporting period. The following table contains an analysis of the credit risk exposure for which an ECL allowance is recognised. The gross carrying amount disclosed below also represents the Group’s and the Company’s maximum exposure to credit risk on these assets: Group Performing RM million Underperforming RM million Non- performing RM million Total RM million 2024 Other receivables Gross carrying amount 373 - 8 381 Accumulated impairment loss (3) - (8) (11) Net carrying amount 370 - - 370 Cash and bank balances Gross/net carrying amount 3,063 - - 3,063 Finance lease receivables Gross/net carrying amount 8,598 - - 8,598
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