115
FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
(cont’d)
27. FINANCIAL INSTRUMENTS (CONT’D)
(a)
Financial Risk Management Policies (Cont’d)
(iv) Credit risk (Cont’d)
Ageing analysis (Cont’d)
Gross
Individual
Collective
Carrying
Amount
Impairment
Impairment
Value
The Group
RM
RM
RM
RM
2013
Not past due
58,948,188
–
–
58,948,188
Past due:-
- Less than 1 month
4,685,081
–
–
4,685,081
- 1 to 9 months
5,244,274
–
(197,927)
5,046,347
- Over 9 months
4,393,513
(1,643,573)
(153,066)
2,596,874
73,271,056
(1,643,573)
(350,993)
71,276,490
At the end of the reporting period, trade receivables that are individually impaired are those
which have defaulted on payments. These receivables are not secured by any collateral or credit
enhancement.
The collective impairment allowance is determined based on estimated irrecoverable amounts
from the sale of goods, determined by reference to past default experience.
Trade receivables that are past due but not impaired
The Group believes that no impairment allowance is necessary in respect of these trade receivables.
They are substantially companies with good collection track record and no recent history of
default.
Trade receivables that are neither past due nor impaired
A significant portion of trade receivables that are neither past due nor impaired are regular
customers that have been transacting with the Group. The Group uses ageing analysis to monitor
the credit quality of the trade receivables.
(v)
Liquidity risk
Liquidity risk arises mainly from general funding and business activities. The Group practices
prudent risk management by maintaining sufficient cash balances and the availability of funding
through certain committed credit facilities.
The following table sets out the maturity profile of the financial liabilities as at the end of the
reporting period based on contractual undiscounted cash flows (including interest payments
computed using contractual rates or, if floating, based on the rates at the end of the reporting
period):-
