Wah Seong Corporation Berhad Annual Report 2018

18 TRADE AND OTHER RECEIVABLES Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Gross trade receivables 277,826 399,815 - - Less: Allowance for impairment loss (23,546) (18,433) - - 254,280 381,382 - - Other receivables, deposits and prepayments 323,272 478,829 14,098 15,318 Less: Allowance for impairment loss (16,845) (17,075) (1,109) (900) 306,427 461,754 12,989 14,418 Total net receivables 560,707 843,136 12,989 14,418 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 2018 2017 RM’000 RM’000 Oil & Gas 36,789 149,904 Renewable Energy 85,418 53,696 Industrial Trading & Services 132,073 177,782 Total 254,280 381,382 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. Ageing analysis of trade receivables (under MFRS 9) The following table contains an analysis of the credit risks exposure for which expected credit loss is recognised: Gross trade Expected Net trade receivables credit loss receivables RM’000 RM’000 RM’000 2018 Not past due 65,611 - 65,611 1 to 30 days overdue 58,526 (197) 58,329 31 to 60 days overdue 52,317 (211) 52,106 61 to 90 days overdue 23,451 (342) 23,109 91 to 180 days overdue 24,952 (316) 24,636 181 to 365 days overdue 20,794 (2,618) 18,176 More than 365 days overdue 32,175 (19,862) 12,313 Total 277,826 (23,546) 254,280 Trade receivables that are individually determined to be impaired at the reporting date relate to debtors that are in significant financial difficulties and have defaulted on payments. These receivables are not secured by any collateral. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 WAH SEONG CORPORATION BERHAD 144