KUB Malaysia Berhad Annual Report 2021

24. TRADE AND OTHER RECEIVABLES AND CONTRACT ASSETS Group Company 30.6.2021 31.12.2019 30.6.2021 31.12.2019 RM’000 RM’000 RM’000 RM’000 Trade Trade receivables (a) 24,125 28,826 - - Less: Allowance for impairment losses Lifetime ECL - Non credit-impaired (1,081) (681) - - Lifetime ECL - Credit-impaired (6,193) (2,494) - - (7,274) (3,175) - - 16,851 25,651 - - Non-trade Government subsidy receivable 10,000 10,386 - - Deposits 3,672 3,829 332 253 Good and service tax receivables 69 2,773 - - Prepayments 967 712 66 15 Other receivables 4,339 4,123 142 1,503 Less: Allowance for impairment losses (b) (3,400) (1,400) - - 15,647 20,423 540 1,771 Total trade and other receivables (net) 32,498 46,074 540 1,771 Net retention sum on contract included within trade receivables 1,160 5,252 - - (a) Trade receivables Trade receivables are non-interest bearing and are generally on 30 to 90 days (31.12.2019: 30 to 90 days) terms. The Group uses a provision matrix to calculate ECLs for trade receivables, contract assets and finance lease receivables. The provision rates are based on days past due for groupings of various customer segments that have similar loss patterns (i.e., nature of project undertaking, product type, customer type and rating, and coverage by bank guarantee or other forms of credit insurance). The provision matrix is initially based on the Group’s historical observed default rates. The Group will calibrate the matrix to adjust the historical credit loss experience with forward-looking information. The Group has recognised a loss allowance of 100% (31.12.2019: 100%) on individually credit-impaired trade receivables over 1 year past due with no realistic prospect of recovery as historical experience has indicated that these receivables are generally not recoverable. 113 ANNUAL REPORT 2021 FINANCIAL STATEMENTS