36. FINANCIAL INSTRUMENTS AND FINANCIAL RISKS (CONTINUED) Credit risk (Continued) The Group does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics except as follows: a) At the end of the reporting period, the Group has outstanding trade receivables from 4 (2023: 2) customers which represent 76% (2023: 69%) of total trade receivables balance. b) At the end of the reporting period, the retention sum from 2 (2023: 2) customers represent 100% (2023: 100%) of total retention sum receivables. The Group defines counterparties as having similar characteristics if they are related entities. Ongoing evaluation is performed on the financial condition of accounts receivable. Trade receivables and contract assets Expected credit loss model is initially based on the Group’s and the Company’s historical observed default rates. The Group and the Company will calibrate the model to adjust historical credit loss experience with industry future outlook. At each reporting period, historical default rates are updated and change in the industry future outlook is reassessed. The Group and the Company also evaluate expected credit loss on credit-impaired receivables separately at each reporting period. The expected credit loss computed is derived from historical data and credit assessment includes forward-looking information which management view is representative of the customers’ credit situation at the reporting date. The following table provides information about the exposure to credit loss for trade receivables and contract assets as at the end of reporting period: Group Expected credit loss rates Gross carrying amount Loss allowance Carrying amount $’000 $’000 $’000 2024 Trade receivables Not past due 0% 17,700 – 17,700 Past due but not impaired – less than 1 month 0% 66 – 66 – 1 to 3 months 0% 303 – 303 – 3 to 6 months 0% 103 – 103 – over 6 months 7% 4,230 (302) 3,928 Contract assets Not past due 7% 30,875 (2,121) 28,754 53,277 (2,423) 50,854 2023 Trade receivables Not past due 0% 15,813 – 15,813 Past due but not impaired – less than 1 month 0% 33 – 33 – 1 to 3 months 0% 169 – 169 – 3 to 6 months 0% 26 – 26 – over 6 months 7% 4,403 (322) 4,081 Contract assets Not past due 10% 24,751 (2,404) 22,347 45,195 (2,726) 42,469 129 ANNUAL REPORT 2024 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2024
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