SCC Holdings Berhad Annual Report 2018

SCC Holdings Berhad | Annual Report 2018 .83 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2018 (CONT’D) 30. Financial Instruments (cont’d) (b) Financial risk management (cont’d) (i) Credit risk (cont’d) Trade receivables (cont’d) Comparative information under MFRS 139, Financial Instruments: Recognition and Measurement The aging of trade receivables of the Group as at 31 December 2017 was as follows: Gross trade Allowance for Net receivables Impairment balance RM RM RM Group 2017 Current 9,614 - 9,614 Past due or not impaired - Less than 30 days 3,072 - 3,072 - 31 to 60 days 1,650 - 1,650 - 61 to 90 days 642 - 642 - more than 90 days 727 (303) 424 15,705 (303) 15,402 The movement in the allowance for impairment losses in respect of trade receivables of the Group in previous financial year are as follows: Group RM At 1 January 2017 391 Impairment loss recognised 52 Impairment loss reversed (139) Written off (1) At 31 December 2017 303 Cash and cash equivalent Risk management objectives, policies and processes for managing the risk The cash and cash equivalents are held with banks and financial institutions. The Group has a credit policy in place to control credit risk by deposit with banks and financial institutions with good credit rating. Exposure to credit risk, credit quality and collateral As at the end of the reporting period, the maximum exposure to credit risk is represented by their carrying amounts in the statement of financial position. Recognition and measurement of impairment loss These banks and financial institutions have low credit risks. Consequently, the Group is of the view that the loss allowance is not material and hence, it is not provided for.