2019 UEM Edgenta Annual Report

214 215 UEM EDGENTA AT A GLANCE MESSAGE FROM OUR LEADERSHIP STRATEGIC FOCUS OPERATIONAL REVIEW SUSTAINABILITY EFFORTS CORPORATE GOVERNANCE INTRODUCTION FINANCIAL REVIEW ADDITIONAL INFORMATION Notes to the Financial Statements For the year ended 31 December 2019 Notes to the Financial Statements For the year ended 31 December 2019 UEM Edgenta Berhad Annual Report 2019 21. TRADE AND OTHER RECEIVABLES (CONT’D.) Movements in allowance for ECL: Group Company 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 At 1 January 76,789 72,595 18,304 18,304 Charge for the year (Note 7) 6,214 9,935 7,105 - Reversal of allowance (Note 5) (28,019) (2,714) - - Written off - (3,468) - - Exchange differences 105 441 - - At 31 December 55,089 76,789 25,409 18,304 (a) Trade receivables Trade receivables are non-interest bearing and are generally on 30 to 90 days (2018: 30 to 90 days) terms. They are recognised at their original invoice amounts which represent their fair values on initial recognition. Ageing analysis of trade receivables The ageing analysis of the Group’s trade receivables is as follows: Group 2019 RM’000 2018 RM’000 Neither past due nor impaired 139,972 215,456 1 to 30 days past due from the credit terms but not impaired 142,564 110,707 31 to 60 days past due from the credit terms but not impaired 33,018 30,440 61 to 90 days past due from the credit terms but not impaired 24,854 12,660 91 to 120 days past due from the credit terms but not impaired 24,700 174,373 More than 121 days past due from the credit terms but not impaired 101,741 110,260 326,877 438,440 Impaired 52,109 73,749 518,958 727,645 21. TRADE AND OTHER RECEIVABLES (CONT’D.) (a) Trade receivables (cont’d.) Receivables that are neither past due nor impaired Trade receivables that are neither past due nor impaired are creditworthy debtors with good payment records with the Group. At the reporting date, approximately 46% (2018: 69%) of the Group’s trade receivables arose from current receivable balances with related companies, while approximately 1% (2018: 16%) of the Group’s trade receivables arose from current receivable balances with Ministry of Health (“MOH”). None of the Group’s trade receivables that are neither past due nor impaired have been renegotiated during the financial year. Receivables that are past due from the credit terms but not impaired The Group has trade receivables amounting to RM326.9 million (2018: RM438.4 million) that are past due from the credit terms at the reporting date but not impaired. These receivables are unsecured. Based on past experience, the management believes that no allowance for impairment is necessary as these debtors are generally slower in their repayment and the Group is still in active trade with these customers. Receivables that are impaired The Group’s trade receivables that are impaired at the reporting date are as follows: Individually impaired 2019 RM’000 2018 RM’000 Trade receivables - nominal amounts 52,109 73,749 Less: Allowance for impairment (52,109) (73,749) - - 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 or credit enhancements.