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Frontken Corporation Berhad (651020-T)
ANNUAL REPORT
2016
26. FINANCIAL INSTRUMENTS (CONT’D)
(a) Financial Risk Management Policies (Cont’d)
(iv) Credit risk (Cont’d)
Ageing analysis
The ageing of the Group’s trade receivables as at end of the reporting period was:-
Gross
Individual
Collective
Carrying
Amount
Impairment
Impairment
Value
The Group
RM
RM
RM
RM
2016
Not past due
83,800,967
-
-
83,800,967
Past due:-
- Less than 1 month
7,614,233
-
-
7,614,233
- 1 to 9 months
4,813,744
(98,322)
(131,547)
4,583,875
- over 9 months
1,841,297
(1,141,430)
(552,351)
147,516
98,070,241
(1,239,752)
(683,898)
96,146,591
2015
Not past due
73,326,282
-
-
73,326,282
Past due:-
- Less than 1 month
6,673,097
-
-
6,673,097
- 1 to 9 months
7,334,292
-
(357,750)
6,976,542
- over 9 months
1,585,605
(1,248,002)
(283,905)
53,698
88,919,276
(1,248,002)
(641,655)
87,029,619
At the end of the reporting period, trade receivables that are individually impaired are those which have
defaulted on payments. These receivables are not secured by any collateral or credit enhancement.
The Group believes that no additional impairment allowance is necessary in respect of trade receivables that
are past due but not impaired because they are companies with good collection track record and no recent
history of default.
(v) Liquidity risk
Liquidity risk arises mainly from general funding and business activities. The Group practises prudent risk
management by maintaining sufficient cash balances and the availability of funding through certain committed
credit facilities.
Notes To The Financial Statements
(cont’d)