Sasbadi Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS 123 ANNUAL REPORT 2017 23. Financial instruments (continued) 23.4 Credit risk (continued) Receivables (continued) Exposure to credit risk, credit quality and collateral (continued) The Group has entered into a small number of contracts, all of which are monitored individually for completion and payment by the Directors and management. The Directors are confident that, based on their knowledge of payment patterns and subsequent payments received, the Group is able to fully recover the amounts due from its customers. Management has taken reasonable steps to ensure that receivables that are neither past due nor impaired are stated at their realisable values. A significant portion of these receivables are regular customers that have been transacting with the Group. The Group uses ageing analysis to monitor the credit quality of the receivables. Any receivables having significant balances past due more than 120 days, which are deemed to have higher credit risk, are monitored individually. Where applicable, the Group will demand for guarantees from shareholders/ Directors of their customers as a form of safeguard over the outstanding debts. Impairment losses The Group maintains an ageing analysis in respect of trade receivables only. The ageing of trade receivables as at the end of the reporting period was: Individual Group Gross impairment Net RM’000 RM’000 RM’000 2017 Not past due 9,582 - 9,582 Past due 0 – 30 days 3,417 - 3,417 Past due 31 – 120 days 14,420 - 14,420 Past due more than 120 days 21,231 (1,697) 19,534 48,650 (1,697) 46,953 2016 Not past due 13,909 - 13,909 Past due 0 – 30 days 3,626 - 3,626 Past due 31 – 120 days 12,352 - 12,352 Past due more than 120 days 16,629 (736) 15,893 46,516 (736) 45,780