Frontken Berhad Annual Report 2017

115 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2017 27. FINANCIAL INSTRUMENTS (CONT’D) (a) Financial Risk Management Policies (Cont’d) (iv) Credit risk (Cont’d) Ageing analysis The ageing of the Group’s trade receivables as at end of the reporting period was:- Gross Individual Collective Carrying Amount Impairment Impairment Value The Group RM RM RM RM 2017 Not past due 78,685,551 - - 78,685,551 Past due:- - Less than 1 month 7,618,770 - - 7,618,770 - 1 to 9 months 5,057,355 - (80,269) 4,977,086 - over 9 months 1,717,020 (1,110,776) (592,193) 14,051 93,078,696 (1,110,776) (672,462) 91,295,458 2016 Not past due 83,525,876 - - 83,525,876 Past due:- - Less than 1 month 7,614,233 - - 7,614,233 - 1 to 9 months 4,813,744 (98,322) (131,547) 4,583,875 - over 9 months 1,841,297 (1,141,430) (552,351) 147,516 97,795,150 (1,239,752) (683,898) 95,871,500 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 Group believes that no additional impairment allowance is necessary in respect of trade receivables that are past due but not impaired because they are companies with good collection track record and no recent history of default. (v) Liquidity risk Liquidity risk arises mainly from general funding and business activities. The Group practises prudent risk management by maintaining sufficient cash balances and the availability of funding through certain committed credit facilities. Notes To The Financial Statements (cont’d)