18. TRADE AND OTHER RECEIVABLES (CONTINUED) (iii) Trade receivables that are past due and impaired (Continued) Trade receivables from subsidiaries at the Company level are assessed separately under the general approach. The carrying amount of trade and other receivables from subsidiaries determined to be impaired, and the movement in the related allowance for impairment are as follows: Company 2025 2024 $ $ Gross amount 3,429,000 3,540,000 Less: allowance for impairment (3,429,000) (3,540,000) Total – – Movements in allowance for impairment during the year: Balance at beginning of year 3,540,000 3,540,000 Bad debt recovered (111,000) – Balance at end of year 3,429,000 3,540,000 For the remaining trade receivables from subsidiaries, the Company has assessed that its subsidiaries have strong financial capacity to meet the contractual obligation and considered to have low credit risk. (iv) Concentration of credit risk The number of debtors that individually represented 5 – 10% of non-related party trade receivables are as follows: Group Company 2025 2024 2025 2024 Number of debtors that represent: 5 – 10% of non-related party trade receivables 1 None 1 None There is no concentration of credit risk with respect to trade receivables as there are a large number of customers. (v) Credit risk exposure The credit risk for non-related party trade receivables by geographical areas is as follows: Group Company 2025 2024 2025 2024 $ $ $ $ By geographical areas Africa – 6,000 – 6,000 America 18,895 31,893 15,351 14,563 ASEAN 11,565,956 12,587,451 6,059,857 6,309,587 Australia 1,952,971 1,254,560 – 29,758 Middle East 2,799,435 2,889,860 43,480 37,659 North Asia 4,547,786 3,690,893 138,076 266,589 South Asia 770,871 828,731 48,260 99,438 UK and Europe 2,223,588 1,997,732 5,302 13,278 Total non-related party trade receivables 23,879,502 23,287,120 6,310,326 6,776,872 MEGACHEM LIMITED ANNUAL REPORT 2025 154 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2025
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