ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 106 NOTES TO THE FINANCIAL STATEMENTS 31 March 2020 13. TRADE AND OTHER RECEIVABLES (Cont’d) j. (Cont’d) The Group defined significant increase in credit risk when a counterparty’s financial position deteriorates significantly. In determining the financial position, the Group considers the operating performance of the receivables, changes to contractual terms, payment delays and past due information. Generally, the Company considers loans and advances to subsidiaries have low credit risk. The Company assumes that there is a significant increase in credit risk when a subsidiary’s financial position deteriorates significantly. As the Company is able to determine the timing of payments of the subsidiaries’ loans and advances when they are payable, the Company considers the loans and advances to be in default when the subsidiaries are not able to pay when demanded. The Company considers a subsidiary’s loan or advance to be credit impaired when: - The subsidiary is unlikely to repay its loans or advances to the Company in full; - The subsidiary’s loan or advance is overdue for more than 120 days; or - The subsidiary is continuously loss making and is having a deficit shareholders’ fund. The Company determines the probability of default for these intercompany loans and advances using internal information available. Movements in the impairment allowance for amount due from an associate are as follows: 12-month ECL RM’000 Lifetime ECL – not credit impaired RM’000 Total RM’000 Group At 1 April 2019 - - - Charge for the financial year 2,241 - 2,241 At 31 March 2020 2,241 - 2,241 k. No expected credit loss is recognised arising from other receivables of the Group and the Company as it is negligible. l. Information on financial risks of trade and other receivables is disclosed in Note 41 to the financial statements.