GHL System Berhad Annual Report 2019

G H L S Y S T E M S B E R H A D 1 9 9 4 0 1 0 0 7 3 6 1 ( 2 9 3 0 4 0 - D ) 140 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 CONT’D 20. TRADE AND OTHER RECEIVABLES (cont’d) (h) ECL assessment for non-financial institutions customers are as follows: The Group uses an allowance matrix to measure the expected credit loss of trade receivables from non- financial institutions customers. Expected loss rates are calculated using the roll rate method separately for exposures in different segments based on the following common credit risk characteristics - geographic region, age of customer relationship and type of product purchased. During this process, the probability of non-payment by the trade receivables is adjusted by forward looking information and multiplied by the amount of the expected loss arising from default to determine the lifetime expected credit loss for the trade receivables. For trade receivables, which are reported net, such impairments are recorded in a separate impairment account with the loss being recognised within administrative expenses in the statements of profit or loss and other comprehensive income. On confirmation that the trade receivable would not be collectable, the gross carrying value of the asset would be written off against the associated impairment. It requires management to exercise significant judgement in determining the probability of default by trade receivables and appropriate forward looking information. The following table provides information about the exposure to credit risk and ECLs for trade receivables for non-financial institutions customers. 31 December 2019 Gross carrying amount Impairment loss allowance Credit impairment RM RM Group Current (not past due) 30,636,552 (47,288) No More than 30 days past due 2,755,910 (70,288) No More than 60 days past due 2,072,543 (1,244,673) No More than 90 days past due 1,682,259 (1,682,259) No More than 120 days past due 9,489,622 (9,489,622) Yes 46,636,886 (12,534,130) Company Current (not past due) 395,065 - No More than 30 days past due 16 - No More than 60 days past due 10,600 (4,971) No More than 90 days past due - - No More than 120 days past due 7,720,954 (4,433,890) Yes 8,126,635 (4,438,861)