financial year (25.1) 0 0 (25.1) Impairment loss recognised (6.0) 0 0 (6.0) Impairment loss reversed 2.9 0 0 2.9 As at the end of the financial year (28.2) 0 0 (28.2) 2022 As at the beginning of the financial year (27.4) 0 0 (27.4) Impairment loss recognised (3.1) 0 0 (3.1) Impairment loss reversed 5.4 0 0 5.4 As at the end of the financial year (25.1) 0 0 (25.1) The impact on the carrying value of the investment in unquoted debt security presented by the stages are as follows: Stage 1 RM’million Stage 2 RM’million Stage 3 RM’million Total RM’million 2023 Gross carrying amount 287.5 0 0 287.5 Less: Loss allowances (28.2) 0 0 (28.2) Net carrying amount 259.3 0 0 259.3 2022 Gross carrying amount 278.50 0 278.5 Less: Loss allowances (25.1) 0 0 (25.1) Net carrying amount 253.4 0 0 253.4 NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 TENAGA NASIONAL BERHAD Integrated Annual Report 2023 318 45 FINANCIAL INSTRUMENTS (CONTINUED) (b) Financial risk management (continued) Credit risk (continued) (iii) Non-trade receivables • Intercompany balances Risk management objectives, policies and processes for managing the risk The Company provides unsecured loans and advances to subsidiaries. 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