PRG Holdings Berhad Annual Report 2020

39. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) (iv) Credit risk Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount and the Group regularly follows up on receivables outstanding beyond their stipulated time threshold for payments. The Group does not require collateral in respect of financial assets. Exposure to credit risk At the end of the reporting period, the Group’s and the Company’s maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statements of financial position. The Group mitigates its credit risk in trade receivables arising from the sale of development properties by maintaining its name as the registered owner of the development properties until full settlement by the purchaser of the self- financed portion of the purchase consideration or upon undertaking of end-financing by the purchaser’s end-financier. In respect of trade and other receivables, the Group is not exposed to any significant credit risk exposure to any individual customer or counterparty except that 21% (2019: 35%) of the Group’s trade receivables as at reporting date were due from six(6) (2019: five (5)) major customers. The Company has no significant concentration of credit risk except for the amounts owing by subsidiaries constituting approximately 62% (2019: 99%) of the total receivables of the Company. The Group’s and the Company’s maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statements of financial position. Credit risk concentration profile The Group determines concentration of credit risk by monitoring the country and industry sector profiles of its trade receivables on an ongoing basis. The credit risk concentration profile of the Group’s trade receivables at the end of the reporting period are as follows: 2020 2019 RM’000 % of total RM’000 % of total By country Malaysia 13,895 40% 3,540 9% Asia Pacific (excluding Malaysia) 19,716 56% 34,409 82% Europe 368 1% 1,243 3% North America 1,055 3% 2,069 5% Other countries - - 463 1% 35,034 100% 41,724 100% Annual Report 2020 187 Notes to the Financial Statements 31 December 2020 cont’d