NOTES TO THE FINANCIAL STATEMENTS 35. FINANCIAL INSTRUMENTS (CONTINUED) 35.4 Credit risk (continued) Receivables and contract assets (continued) Recognition and measurement of impairment losses (continued) Under this approach, loss allowance is measured on either 12-month expected credit losses or lifetime expected credit losses, by considering the likelihood that the receivable would not be able to repay during the contractual period (probability of default, PD), the percentage of contractual cash flows that will not be collected if default happens (loss given default, LGD) and the outstanding amount that is exposed to default risk (exposure at default, EAD). In deriving the PD and LGD, the Group and the Company consider the receivable’s past payment status and its financial condition as at the reporting date. The PD is adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the receivable to settle its debts. Nevertheless, the Group believes that these factors are immaterial for the purpose of impairment calculation for the year. The following table provides information about the exposure to credit risk and the ECLs for receivables and contract assets (excluding prepayments) which are grouped together as they are expected to have similar risk nature. Group Gross carrying amount RM’000 Loss allowances RM’000 Net balances RM’000 2025 1 - 30 days 76,138 (308) 75,830 31 - 60 days 17,180 (198) 16,982 61 - 90 days 9,701 (177) 9,524 More than 90 days 6,868 (3,441) 3,427 109,887 (4,124) 105,763 Credit impaired Individually impaired 54,267 (54,267) - 164,154 (58,391) 105,763 Trade and other receivables 142,694 (43,062) 99,632 Contract assets 21,460 (15,329) 6,131 164,154 (58,391) 105,763 DNeX INTEGRATED REPORT 2025 204 ABOUT THIS REPORT LEADERSHIP VALUE CREATION @DNeX LEADERSHIP INSIGHTS OVERVIEW OF DAGANG NeXCHANGE BERHAD
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