Wah Seong Corporation Berhad Annual Report 2021 162 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 16 TRADE AND OTHER RECEIVABLES (CONTINUED) For the financial year ended 31 December 2020, the other receivables were considered performing except for amount of RM32,825,000 which was deemed underperforming and hence an ECL allowance of RM17,092,000 was made during the previous financial year. 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 2021 2020 RM’000 RM’000 Oil & Gas 115,531 106,368 Renewable Energy 70,647 77,741 Industrial Trading & Services 79,272 88,123 Total 265,450 272,232 Concentration of credit risk exists is low within the Oil & Gas segment which primarily trade 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 2021 Not past due 126,435 (80) 126,355 1 to 30 days overdue 65,574 (65) 65,509 31 to 60 days overdue 49,754 (52) 49,702 61 to 90 days overdue 4,663 (21) 4,642 91 to 180 days overdue 7,629 (665) 6,964 181 to 365 days overdue 6,780 (1,791) 4,989 More than 365 days overdue 30,918 (23,629) 7,289 Total 291,753 (26,303) 265,450 2020 Not past due 145,093 - 145,093 1 to 30 days overdue 79,085 (174) 78,911 31 to 60 days overdue 21,887 (46) 21,841 61 to 90 days overdue 6,174 (57) 6,117 91 to 180 days overdue 8,322 (165) 8,157 181 to 365 days overdue 7,502 (2,061) 5,441 More than 365 days overdue 32,590 (25,918) 6,672 Total 300,653 (28,421) 272,232 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.
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