Notes to the Financial Statements For the financial year ended 31 December 2025 Notes to the Financial Statements For the financial year ended 31 December 2025 23 FINANCIAL INSTRUMENTS (continued) Credit risk (continued) Risk management policy (continued) Exposure to credit risk The maximum exposure to credit risk for trade and other receivables (excluding prepayments) at the reporting date by geographical region and type of counterparty was: Group Company 2025 2024 2025 2024 $’000 $’000 $’000 $’000 By geographical areas Singapore 127,248 153,992 486,208 227,760 PRC 180,764 156,858 – – Others 4,907 5,749 – – 312,919 316,599 486,208 227,760 By type of counterparty Related parties 167,672 141,803 475,280 218,558 Non-related parties 145,247 174,796 10,928 9,202 312,919 316,599 486,208 227,760 As at 31 December 2025, the Group’s most significant counterparties relate to six joint ventures and one non-controlling interests (2024: six joint ventures and one non-controlling interests), accounted for $141.5 million (2024: $122.5 million) of trade and other receivables carrying amount. Other than balances with related parties, there is no concentration of customer risk at the Company level. Expected credit loss assessment Trade receivables The Group uses an allowance matrix to measure the ECLs of trade receivables. Loss rates are based on actual credit loss experience over the past four years.These rates are adjusted to reflect differences between economic conditions during the period over which the historic data has been collected, current conditions and the Group’s view of economic conditions over the expected lives of the receivables. 23 FINANCIAL INSTRUMENTS (continued) Credit risk (continued) Expected credit loss assessment (continued) Trade receivables (continued) The following table provides information about the exposure to credit risk and ECLs for trade receivables: Group Company Gross carrying amount Impairment loss allowance Gross carrying amount Impairment loss allowance $’000 $’000 $’000 $’000 2025 Current (not past due) 45,157 – 3,804 – 1 – 30 days past due 15,842 – – – 31 – 60 days past due 5,772 – – – 61 – 90 days past due 16,662 (1,164) 40,094 – 83,433 (1,164) 43,898 – 2024 Current (not past due) 38,372 – 3,693 – 1 – 30 days past due 15,041 – 129 – 31 – 60 days past due 3,199 – – – 61 – 90 days past due 12,957 (984) 29,453 – 69,569 (984) 33,275 – Movements in allowance for impairment in respect of trade receivables The movement in the allowance for impairment in respect of trade receivables during the year was as follows: Group 2025 2024 $’000 $’000 Balance at 1 January 984 813 Impairment loss recognised 781 179 Amounts written off (269) – Translation differences (332) (8) Balance at 31 December 1,164 984 Other receivables The Group assesses on a forward-looking basis for the expected credit losses associated with financial assets at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. The Group considers that the credit risk for these counterparties has not increased. OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX 223 222 PERENNIAL HOLDINGS PRIVATE LIMITED ANNUAL REPORT 2025
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