MISC Annual Report 2019

37. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.) (d) Credit risk (cont’d.) Receivables and contract assets (cont’d.) The following table provides information about the exposure to credit risk and ECLs for receivables and contract assets as at 31 December 2019 which are grouped together as they are expected to have similar risk nature. Group Gross carrying Loss Net amount allowance balance 2019 RM’000 RM’000 RM’000 Credit risk rating Low risk rating 1,072,864 (642) 1,072,222 Medium risk rating 18,064,097 (437,796) 17,626,301 High risk rating 539,053 (298,900) 240,153 19,676,014 (737,338) 18,938,676 Representing: Trade and other receivables 4,594,905 (664,200) 3,930,705 Finance lease receivables (Note 19(d)) 15,081,109 (73,138) 15,007,971 19,676,014 (737,338) 18,938,676 Corporation Gross carrying Loss Net amount allowance balance RM’000 RM’000 RM’000 Credit risk rating Medium risk rating 2,705,116 (93,479) 2,611,637 High risk rating 442,960 (295,451) 147,509 3,148,076 (388,930) 2,759,146 Representing: Trade and other receivables 2,128,649 (381,509) 1,747,140 Finance lease receivables (Note 19(d)) 1,019,427 (7,421) 1,012,006 3,148,076 (388,930) 2,759,146 37. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.) (d) Credit risk (cont’d.) Receivables and contract assets (cont’d.) Group Gross carrying Loss Net amount allowance balance 2018 RM’000 RM’000 RM’000 Credit risk rating Low risk rating 833,140 (500) 832,640 Medium risk rating 19,716,367 (453,423) 19,262,944 High risk rating 566,442 (335,436) 231,006 21,115,949 (789,359) 20,326,590 Representing: Trade and other receivables 4,659,161 (709,961) 3,949,200 Finance lease receivables (Note 19(d)) 16,456,788 (79,398) 16,377,390 21,115,949 (789,359) 20,326,590 Corporation Gross carrying Loss Net amount allowance balance RM’000 RM’000 RM’000 Credit risk rating Medium risk rating 4,068,200 (112,939) 3,955,261 High risk rating 461,967 (331,507) 130,460 4,530,167 (444,446) 4,085,721 Representing: Trade and other receivables 3,439,704 (436,574) 3,003,130 Finance lease receivables (Note 19(d)) 1,090,463 (7,872) 1,082,591 4,530,167 (444,446) 4,085,721 NOTES TO THE FINANCIAL STATEMENTS 31 December 2019 NOTES TO THE FINANCIAL STATEMENTS 31 December 2019 FINANCIAL STATEMENTS MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019 358 359