Kimlun Corporation Berhad Annual Report 2019

Annual Report 2019 Kimlun Corporation Berhad 149 34. Financial risk management objectives and policies (cont'd) (a) Credit risk (cont'd) Contract 1 - 30 31 - 60 61 - 90 91 - 120 > 120 assets Current days days days days days Total Group RM RM RM RM RM RM RM RM 31 December 2019 Expected credit loss rate (%) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Estimated total gross carrying amount at default 386,551,692 269,971,480 48,920,844 21,977,725 23,546,294 13,945,284 89,587,132 467,948,759 Expected credit loss - - - - - - - - The provision rates are based on days past due for groupings of various customer segments with similar loss patterns (i.e., by geographical region, product type, customer type and rating, and coverage by letters of credit or other forms of credit insurance). The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. Any receivables having significant balances past due more than 365 days, which are deemed to have higher default risk, are monitored individually. Set out below is the information about the credit risk exposure on the Group’s trade receivables and contract assets using a provision matrix: Days past due Trade receivables NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2019 (cont’d)