ENRA Group Berhad Annual Report 2018

86 E N R A G R O U P B E R H A D ( 2 3 6 8 0 0 - T ) NOTES TO THE FINANCIAL STATEMENTS 31 March 2018 cont’d 12. TRADE AND OTHER RECEIVABLES (Cont’d) (d) The ageing analysis of trade receivables of the Group and of the Company are as follows: (Cont’d) Receivables that are past due but not impaired Trade receivables that are past due and not impaired are creditworthy receivables with good payment records with the Company. The Group makes impairment of receivables based on an assessment of the recoverability of receivables. Impairment is applied to receivables where events or changes in circumstances indicate that the carrying amounts may not be recoverable. The management specifically analyses historical bad debts, customer concentration, customer creditworthiness, current economic trends and changes in customer payment terms when making a judgement to evaluate the adequacy of impairment of receivables. The Group assesses annually at the end of the reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (“loss event”) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets than can be reliably estimated. Included in the past due but not impaired of the Group is an amount of RM10,574,663 (2017: RM352,049) being amount due from a customer whom has a long business relationship with the Group. Despite the outstanding amount is currently in the process of an adjudication as disclosed in Note 43(c) to the financial statements, the Directors of the Group opined that it is highly probable of recovering the outstanding amount and will continue to take all necessary action to fully defend the Group’s right and interest in this adjudication matter. Receivables that are past due and impaired Trade receivables of the Group and of the Company that are past due and impaired at the end of the reporting period are as follows: Group Company Individually impaired Individually impaired 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Trade receivables, gross 34 34 34 34 Less: Impairment losses (34) (34) (34) (34) - - - - The reconciliations of movement in the impairment losses of trade receivables are as follows: Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 At 1 April/31 March 34 34 34 34 Trade receivables that are individually determined to be impaired at the end of the reporting period relate to those receivables that exhibit significant financial difficulties and have defaulted on payments. These receivables are not secured by any collateral or credit enhancements.