Wah Seong Corporation Berhad Annual Report 2019

152 WAH SEONG CORPORATION BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 17 TRADE AND OTHER RECEIVABLES (CONTINUED) 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 2019 2018 RM’000 RM’000 Oil & Gas 81,531 36,789 Renewable Energy 113,434 85,418 Industrial Trading & Services 117,561 132,073 Total 312,526 254,280 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. The following table contains an analysis of the credit risks exposure for which expected credit loss is recognised: Gross trade receivables Expected credit loss Net trade receivables RM’000 RM’000 RM’000 2019 Not past due 131,707 - 131,707 1 to 30 days overdue 77,830 (153) 77,677 31 to 60 days overdue 36,815 (157) 36,658 61 to 90 days overdue 18,732 (162) 18,570 91 to 180 days overdue 30,717 (479) 30,238 181 to 365 days overdue 6,227 (750) 5,477 More than 365 days overdue 31,884 (19,685) 12,199 Total 333,912 (21,386) 312,526 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.