ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 105 NOTES TO THE FINANCIAL STATEMENTS 31 March 2020 13. TRADE AND OTHER RECEIVABLES (Cont’d) g. As at the end of each reporting period, no collateral has been obtained by the Group. Thus, the maximum credit risk exposure is equivalent to the gross carrying amount of trade receivables of the Group. h. During the financial year, the Group did not renegotiate the terms of any trade receivables. i. The reconciliation of movements in allowance for impairment accounts is as follows: Trade receivables Lifetime expected credit allowance RM’000 Specific allowance RM’000 Total allowance RM’000 Group At 1 April 2018 1 627 628 Charge for the year 1 16,607 16,608 Written off - (34) (34) At 31 March 2019 / 1 April 2019 2 17,200 17,202 Charge for the year 2 - 2 Reversal - (346) (346) At 31 March 2020 4 16,854 16,858 Company At 1 April 2018 - 34 34 Charge for the year - - - Written off - (34) (34) At 31 March 2019 / 1 April 2019 - - - Charge for the year - - - Written off - - - At 31 March 2020 - - - Specific allowance refers to individually determined debtors who are in significant financial difficulties and have defaulted on payments to be impaired as at the end of financial year. j. Impairment for other receivables are recognised based on the general approach within MFRS 9 using the forward looking expected credit loss model. The methodology used to determine the amount of the impairment is based on whether there has been a significant increase in credit risk since initial recognition of the financial asset. At the end of the reporting period, the Group assessed whether there has been a significant increase in credit risk for financial assets by comparing the risk of default since initial recognition. For those in which the credit risk has not increased significantly since initial recognition of the financial asset, twelve-months expected credit losses along with gross interest income are recognised. For those in which credit risk has increased significantly, lifetime expected credit losses along with the gross interest income are recognised. For those that are determined to be credit impaired, lifetime expected credit losses along with interest income on a net basis are recognised.