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FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT
2015
17.
AMOUNT OWING BY A CONTRACT CUSTOMER
The Group
2015
2014
RM
RM
Contract costs incurred plus recognised profits
-
88,659,311
Less: Progress billings
-
(86,822,311)
-
1,837,000
Presented as:
Amount due from contract customers
-
1,837,000
18.
TRADE RECEIVABLES, OTHER RECEIVABLES, DEPOSITS AND PREPAID EXPENSES
Trade receivables of the Group comprise amounts outstanding for the provision of services and sale of goods. The
credit periods granted to the customers range from 30 to 90 days (2014: 30 to 90 days).
The Group
2015
2014
RM
RM
Trade receivables
88,919,276
104,497,984
Allowance for impairment losses
(1,889,657)
(2,656,253)
87,029,619
101,841,731
Movement in allowance for impairment losses on trade receivables is as follows:
The Group
2015
2014
RM
RM
At 1 January
2,656,253
1,994,566
Allowance for impairment losses
294,518
823,534
Write-back of allowance for impairment losses
(717,433)
(148,158)
Written off as bad debts
(456,765)
(23,713)
Exchange difference
113,084
10,024
1,889,657
2,656,253
Included in trade receivables of the Group are the following amounts owing from the related parties:
The Group
2015
2014
RM
RM
A & I Engine Rebuilders Sdn. Bhd.
721
20
AMT Engineering Sdn. Bhd.
9,148
-
Cleanpart Dresden GmbH & Co. Kg
-
20,087
9,869
20,107
The said amount, which arose mainly from trade transactions, is unsecured, interest-free and repayable on demand.
The amount owing is to be settled in cash.
NOTES TO THE FINANCIAL STATEMENTS
(cont’d)