38. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) (iv) Credit risk (continued) Exposure to credit risk (continued) The Group mitigates its credit risk in trade receivables arising from the sale of development properties by maintaining its name as the registered owner of the development properties until full settlement by the purchaser of the self-financed portion of the purchase consideration or upon undertaking of end-financing by the purchaser’s end-financier. In respect of trade and other receivables, the Group is not exposed to any significant credit risk exposure to any individual customer or counterparty except that 40% (2020: 41%) of the Group’s trade receivables and 74% (2020: 64%) of Group’s other receivables as at reporting date were due from five (5) (2020: six (6)) major trade customers and one (1) (2020: one: (1)) major non-trade customer respectively. The Company has no significant concentration of credit risk except for the amounts owing by subsidiaries and a third party constituting approximately 58% and 42% respectively (2020: 62% and 38%) of the total receivables of the Company. The Group’s and the Company’s maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statements of financial position. Credit risk concentration profile The Group determines concentration of credit risk by monitoring the country and industry sector profiles of its trade receivables on an ongoing basis. The credit risk concentration profile of the Group’s trade receivables at the end of the reporting period are as follows: 2021 2020 RM’000 % of total RM’000 % of total By country Malaysia 19,742 53% 13,895 40% Asia Pacific (excluding Malaysia) 14,532 39% 19,716 56% Europe 889 2% 368 1% North America 2,375 6% 1,055 3% Other countries 21 * - - 37,559 100% 35,034 100% * Amount is less than 1% NOTES TO THE FINANCIAL STATEMENTS 189 P R G H O L D I N G S B E R H A D A N N U A L R E P O R T 2 0 2 1 31 December 2021 (cont’d)
RkJQdWJsaXNoZXIy NDgzMzc=