Company: VCIG
Filing Date: 2025-05-13
Form Type: 20-F
Source: 0001213900-25-042476
Chunk: 108

Company: VCI Global Ltd
Filing Date: 2025-05-13
Form: 20-F
Item: Item 11
Chunk 108
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 been determined
based on the exposure to interest rate for non-derivative instruments at the end of the reporting period. A 50 basis point increase or
decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment
of the reasonably possible change in interest rates.

If
interest rates on loans had been 50 basis points higher/lower and all other variables were
held constant, the Group’s profit for the year would decrease/increase by approximately
RM4,947 (2023: RM10,820, 2022: RM5,983).

Credit risk management

Credit risk refers to the risk that a counterparty
will default on its contractual obligations resulting in financial loss to the Group. At the end of each reporting period, the Group
maximum exposure to credit risk which will cause a financial loss to the Group due to failure to discharge an obligation by the counterparties
arises from the carrying amount of the respective recognized financial assets as stated in the Statements of Financial Position.

In order to minimise credit risk, the Group has
delegated its finance team to develop and maintain the Group’s credit risk grading to categorise exposures according to their degree
of risk of default. The finance team uses publicly available financial information and the Group’s own historical repayment records
to rate its major customers and debtors. The Group’s exposure and the credit ratings of its counterparties are continuously monitored,
and the aggregate value of transactions concluded is spread amongst approved counterparties.

The Group’s current credit risk grading
framework comprises the following categories:

  Category        Description                                                                                                                               Basis for recognising              
                                                                                                                                                            ECL                                
  Performing      The counterparty has a low risk of default and does not have any past-due amounts                                                         12-month ECL                       
  Doubtful        There has been a significant increase in credit risk since initial recognition                                                            Lifetime ECL- not credit-impaired  
  In default      There is evidence indicating the asset is credit impaired                                                                                 Lifetime ECL - credit impaired     
  Write-off       There is evidence indicating that the debtor is in severe financial difficulty and the Company has no realistic prospect of recovery      Amount is written off              
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For trade receivables, the Group has applied the
simplified approach allowed in the accounting standard to measure the loss allowance at lifetime ECL. The Group determines the ECL on
these items by using