ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 104 NOTES TO THE FINANCIAL STATEMENTS 31 March 2020 13. TRADE AND OTHER RECEIVABLES (Cont’d) f. The Group uses an allowance matrix to measure the expected credit loss of trade receivables from individual customers. Expected loss rates are calculated using the average historical bad debts write-offs rate and general rate based on the length of time invoices are overdue. During this process, the probability of non-payment by the trade receivables is adjusted by forward looking information (gross domestic product (GDP)) and multiplied by the amount of the expected loss arising from default to determine the lifetime expected credit loss for the trade receivables. For trade receivables, which are reported net, such impairments are recorded in a separate impairment account with the loss being recognised within administrative expenses in the consolidated statement of profit or loss and other comprehensive income. On confirmation that the trade receivable would not be collectable, the gross carrying value of the asset would be written off against the associated impairment. It requires management to exercise significant judgement in determining the probability of default by trade receivables and appropriate expected loss rates. Expected credit loss provision for trade receivables as at 31 March 2020 are as follows: Gross carrying amount RM’000 Total allowance RM’000 Net balance RM’000 Group 2020 Current (not past due) 35,941 (4) 35,937 Past due - 1 to 30 days 3,429 * 3,429 - 31 to 60 days 210 * 210 - 61 to 90 days 964 * 964 - More than 90 days 24 * 24 40,568 (4) 40,564 Credit impaired Individually impaired 16,854 (16,854) - 57,422 (16,858) 40,564 2019 Current (not past due) 13,810 (1) 13,809 Past due - 1 to 30 days 3,243 (1) 3,242 - 31 to 60 days 61 * 61 - 61 to 90 days - - - - More than 90 days 4 * 4 17,118 (2) 17,116 Credit impaired Individually impaired 17,210 (17,200) 10 34,328 (17,202) 17,126 * The amount is immaterial to disclose.