150
GHL Systems Berhad
(293040-D)
NOTES TO THE FINANCIAL STATEMENTS
31 December 2014 (continued)
36. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(a) Credit risk (continued)
Exposure to credit risk
The primary exposure of the Group to credit risk arises through its trade receivables. The trading terms
of the Group with its customers are mainly on credit, except for new customers, where deposits in
advance are normally required. Overdue balances are reviewed regularly by senior management.
At the end of each reporting period, the maximum exposure of the Group and of the Company to
credit risk is represented by the carrying amount of each class of financial assets recognised in the
statements of financial position.
Credit risk concentration profile
The Group determines concentration of credit risk by monitoring the country profiles of its trade
receivables on an ongoing basis. The credit risk concentration profile of the trade receivables of the
Group at the end of each reporting period are as follows:
2014
2013
RM % of total
RM % of total
By country
Malaysia
27,629,291
78 6,616,644
53
Philippines
5,764,292
16 4,370,256
35
Thailand
740,008
4 1,303,686
11
Australia
585,320
2
115,682
1
34,718,911
100 12,406,268
100
At the end of each reporting period, approximately thirty-four percent (34%) (2013: 49%) of the trade
receivables of the Group were due from five (5) (2013: 7) customers.
At the end of each reporting period, the Company does not have significant concentration of credit
risk other than amounts owing by subsidiaries of RM46,108,216 (2013: RM9,097,992), which contributes
96% (2013: 77%) of total receivables.
Financial assets that are neither past due nor impaired
Information regarding trade and other receivables that are neither past due nor impaired is disclosed
in Note 13 to the financial statements. Deposits with licensed banks that are neither past due nor
impaired are placed with or entered into with reputable financial institutions.
Financial assets that are either past due or impaired
Information regarding financial assets that are either past due or impaired is disclosed in Note 13 to the
financial statements.
