MKH Annual Report 2020

180 FINANCIAL STATEMENTS ANNUAL REPORT 2020 20. RECEIVABLES, DEPOSITS AND PREPAYMENTS (CONT’D) (e) Trade receivables (Cont’d) (ii) The ageing analysis of the Group’s trade receivables is as follows (Cont’d): Receivables that are impaired The movement of allowance accounts used to record the impairment is as follows: The Group 2020 RM 2019 RM At beginning of year 1,053,868 825,130 Addition 10,707 626,174 No longer required (96,622) (250,778) Written off (90,477) (146,658) At end of year 877,476 1,053,868 Trade receivables that are individually determined to be impaired at the reporting date relate to debtors that are in significant financial difficulties and have defaulted on payment. These receivables are not secured by any collateral or credit enhancements. The Group always measures the loss allowance for trade receivables at an amount equal to lifetime expected credit loss (“ECLs”). The ECLs on trade receivables are estimated by reference to past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for factors that are specific to the debtors, general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions at the reporting date. There has been no change in the estimation techniques or significant assumptions made during the current reporting period. (iii) Included in trade receivables of the Group are: (a) retention sums amounting to RM23,855,068 (2019: RM47,508,022) held by stakeholders; (b) amount of RM87,800 (2019: RM130,225) due from key management personnel of the Group in respect of purchase of development properties of the Group which include retention sum of RM17,300 (2019: RM43,525) held by stakeholders; (c) amount of RM39,775 (2019: RM79,550) due from a person connected to certain directors of the Company in respect of purchase of development properties of the Group which include retention sum of RM39,775 (2019: RM79,550) held by stakeholders; and (d) amount of RM26 (2019: RM28,719) due from an associate.