SCC Holdings Berhad Annual Report 2019

notes to the financial statement 31 december 2019 (cont’d) 90 SCC Holdings Berhad | Annual Report 2019 31. Financial Instruments (Cont’d) (b) Financial risk management (cont’d) (i) Credit risk (cont’d) Trade receivables (cont’d) The movement in the allowance for impairment losses in respect of trade receivables of the Group for the financial year are as follows: Lifetime ECL Credit impaired Total Group RM’000 RM’000 RM’000 2019 At 1 January 2019 89 262 351 Impairment loss recognised - 278 278 Impairment loss reversed (66) (43) (109) Written off - (139) (139) At 31 December 2019 23 359 382 2018 At 1 January 2018 43 303 346 Impairment loss recognised 47 56 103 Impairment loss reversed (1) (97) (98) At 31 December 2018 89 262 351 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 and the Company have 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 statements of financial position. Recognition and measurement of impairment loss These banks and financial institutions have low credit risks. Consequently, the Group and the Company are of the view that the loss allowance is not material and hence, it is not provided for. Other receivables Risk management objectives, policies and processes for managing the risk Credit risks on other receivables are mainly arising from receivables from third parties. The Group and the Company manage the credit risk on an ongoing basis via the Group’s and the Company’s management reporting procedures and action will be taken for long outstanding debts.