The Company monitors the results of the subsidiaries regularly. Exposure to credit risk, credit quality and collateral At the end of the financial year, the maximum exposure to credit risk is represented by their carrying amounts in the SOFP. The total amounts due from subsidiaries and impairment provided are as follows: Company 2023 RM’million 2022 RM’million Amounts due from subsidiaries 8,550.8 10,590.8 Less: Loss allowances (573.2) (573.9) 7,977.6 10,016.9 Impairment losses Generally, the Company considers loans and advances to subsidiaries having low credit risk. The Company assumes that there is a significant increase in credit risk when a subsidiary’s financial position deteriorates significantly based on stages determined in the accounting policy part (d) of this note. As the Company is able to determine the timing of payments of thesubsidiaries’ balances when they are payable, the Company considers the amount payable to be in default when the subsidiaries are not able to pay when demanded. The Company considers a subsidiary’s balances to be impaired when the subsidiary is: - unlikely to repay its payables to the Company in full; - having prolonged negative operating cash flows and is in net tangible liabilities position; or - a dormant entity or has a history of default. At the end of the financial year, there was no indication that the amounts due from the subsidiaries are not recoverable other than those which have already been impaired. The Company does not specifically monitor the ageing of advances to the subsidiaries. During the financial year, there has been reversal of loss allowances due to repayments received from subsidiaries. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 FINANCIAL STATEMENTS Sec 5 319 45 FINANCIAL INSTRUMENTS (CONTINUED) (b) Financial risk management (continued) Credit risk (continued) (iii) Non-trade receivables (continued) • Intercompany balances (continued) Impairment losses (continued) The loss allowances for intercompany balances using the general 3-stage approach