Wah Seong Corporation Berhad Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 FINANCIAL STATEMENTS WAH SEONG CORPORATION BERHAD ANNUAL REPORT 2017 151 17 TRADE AND OTHER RECEIVABLES Group Company 2017 RM’000 2016 RM’000 2017 RM’000 2016 RM’000 Gross trade receivables 399,815 316,117 - - Less: Allowance for impairment loss (18,433) (19,748) - - 381,382 296,369 - - Other receivables, deposits and prepayments 477,944 182,157 14,433 1,923 Less: Allowance for impairment loss (16,190) (15,741) (15) (15) 461,754 166,416 14,418 1,908 Total net receivables 843,136 462,785 14,418 1,908 Credit risk concentration profile The Group determines concentration of credit risk by monitoring the business segment of its trade receivables on an ongoing basis. The credit risk concentration profile of the Group’s trade receivables at the reporting date is as follows: Group 2017 RM'000 2016 RM'000 Oil & Gas 149,904 86,575 Renewable Energy 53,696 67,315 Industrial Trading & Services 177,782 142,479 Total 381,382 296,369 Concentration of credit risk exists within the Oil & Gas segment which primarily trades with oil majors. However, the Group considers the risk of default by these oil majors to be negligible given their relative size and financial strength. There is no concentration of credit risk within the Renewable Energy and Industrial Trading & Services segments as the balances are distributed over a large number of customers.