Kimlun Corporation Berhad Annual Report 2020

200901023978 (867077-X) Kimlun Corporation Berhad (Incorporated in Malaysia) 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 2020 Expected credit loss rate (%) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.71% Estimated total gross carrying amount at default 374,719,171 172,702,749 73,522,596 21,810,430 15,595,002 13,125,753 164,067,765 460,824,295 Less: Receivables individually impaired - - (2,696) (119,155) (273,303) - (15,071,323) (15,466,477) 374,719,171 172,702,749 73,519,900 21,691,275 15,321,699 13,125,753 148,996,442 445,357,818 Expected credit loss - - - - - - 1,164,477 1,164,477 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 - 96 - NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 Kimlun Corporation Berhad Registration No. 200901023978 (867077-X) 153