0 18.8 114.7 (101.4) 133.3 10.2 NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 TENAGA NASIONAL BERHAD Integrated Annual Report 2023 312 45 FINANCIAL INSTRUMENTS (CONTINUED) (b) Financial risk management (continued) Credit risk (continued) (i) Trade receivables and trade contract assets Risk management objectives, policies and processes for managing the risk The Group and the Company have a credit policy in place and the exposures to credit risk are monitored on an ongoing basis. Normally, financial guarantees given by banks, shareholders or directors of customers are obtained, and credit evaluations are performed on customers requiring credit over a certain amount. Exposure to credit risk, credit quality and collateral The Group’s and the Company’s credit policy provide trade receivables with a 30 to 90 days (2022: 30 to 90 days)credit period. The Group and the Company have no major significant concentration of credit risk due to their diverse customer base. An impairment has been made for estimated unrecoverable amounts, determined by reference to past default experience of individual debtors and collection portfolios. The total trade receivables and trade contract assets and the impairment provided are as follows: Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million Trade receivables 6,588.2 6,970.3 5,321.2 5,320.9 Less: Loss allowances (2,666.7) (3,002.6) (2,515.3) (2,854.8) 3,921.5 3,967.7 2,805.9 2,466.1 Trade contract assets 4,495.0 3,623.0 4,265.1 3,464.4 Less: Loss allowances (48.2) (37.0) (38.2) (34.4) 4,446.8 3,586.0 4,226.9 3,430.0 The Group and the Company have other financial assets which are lease receivables, investment in unquoted debt security and others. Given the varied nature of the Group’s and of the Company’s customer base, the following analysis of trade receivables by type of customer is considered the most appropriate disclosure of credit concentration. Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million Industrial 1,477.8 1,497.4