2020 UEM Edgenta Annual Report

20. TRADE AND OTHER RECEIVABLES (CONTD.) a. Trade receivables (contd.) Receivables that are neither past due nor impaired T rade receivables that are neither past due nor impaired are creditworthy debtors with good payment records with the Group. At the reporting date, approximately 7% (2019: 46%) of the Group’s trade receivables arose from current receivable balances with related companies, while approximately 1% (2019: 1%) 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 T he Group has trade receivables amounting to RM200.1 million (2019: RM326.9 million) that are past due from the credit terms at the reporting date but not impaired. T hese 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 RM’000 2020 2019 Trade receivables - nominal amounts 43,892 52,109 Less: Allowance for impairment (43,892) (52,109) – – T rade 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. b. Other receivables Amounts due from subsidiaries and related parties A mounts due from subsidiaries and related parties are non-trade related, non-interest bearing and repayable on demand except for an amount due from subsidiaries of RM16,326,361 (2019: RM13,795,666) which bears interest at 3.76% (2019: 4.75% to 5.00%) per annum. All related companies balances are unsecured and are to be settled in cash. T he loan to a subsidiary is subordinated to the subsidiary’s borrowing from a financial institution until the borrowing is fully repaid as disclosed in Note 27(a). Further details on related party transactions are disclosed in Note 37. ANNUAL REPORT 2020 257 1 2 3 4 5 6 7 8