26. FINANCIAL RISK MANAGEMENT (continued) Financial risk factors (continued) (b) Credit risk (continued) Trade receivables (continued) The Group’s and ECW’s credit risk exposure in relation to trade receivables under FRS 109 as at 31 December 2024 are set out in the provision matrix as follows: Past due Current Within 30 days 30 to 60 days 60 to 90 days More then 90 days Total S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 Group 2024 Expected loss rate – – – – – – Trade receivables 6,064 5,053 4,913 4,540 107,941 128,511 Loss allowance – – – – – – ECW There were no trade receivables at ECW level. The Group’s and ECW’s credit risk exposure in relation to trade receivables under FRS 109 as at 31 December 2023 are set out in the provision matrix as follows: Past due Current Within 30 days 30 to 60 days 60 to 90 days More then 90 days Total S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 Group 2023 Expected loss rate – – – – – – Trade receivables 8,876 9,401 9,355 8,351 20,957 56,940 Loss allowance – – – – – – ECW There were no trade receivables at ECW level. Loans to subsidiaries ECW has assessed that its subsidiaries have strong financial capacity to meet the contractual obligation of S$237,057,000 (2023: S$237,057,000) and are considered to have low credit risk. The loans are measured on 12-month expected credit losses and subject to immaterial credit loss. (c) Liquidity risk The Group adopts prudent liquidity risk management by maintaining sufficient cash to fund its working capital and financial obligations. At the end of each reporting period, assets held by the Group for managing liquidity risk included cash and short-term deposits. In addition, the Manager also monitors and observes the CIS Code issued by the MAS concerning the leverage limits (Note 26(d)) and financial covenants imposed by the banks on the various borrowings (Note 18). ANNUAL REPORT 2024 117 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
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