2021 UEM Edgenta Annual Report

UEM EDGENTA BERHAD ANNUAL REPORT 2021 1 2 3 4 5 6 7 251 250 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 20. TRADE AND OTHER RECEIVABLES (CONTD.) Movements in allowance for ECL: Group Company 2021 RM’000 2020 RM’000 2021 RM’000 2020 RM’000 At 1 January 46,362 55,089 27,660 25,409 Charge for the year (Note 7) 2,328 1,936 1,584 2,251 Reversal of allowance (Note 5) (334) (4,231) - - Written off (4,924) (6,432) - - Exchange differences 15 - - - At 31 December 43,447 46,362 29,244 27,660 (a) Trade receivables Trade receivables are non-interest bearing and are generally on 30 to 90 days (2020: 30 to 90 days) terms. They are recognised at their original invoice amounts which represent their fair values on initial recognition. Ageing analysis of trade receivables The ageing analysis of the Group’s trade receivables is as follows: Group 2021 RM’000 2020 RM’000 Neither past due nor impaired 99,951 142,423 1 to 30 days past due from the credit terms but not impaired 202,732 66,011 31 to 60 days past due from the credit terms but not impaired 31,121 26,916 61 to 90 days past due from the credit terms but not impaired 14,291 23,893 91 to 120 days past due from the credit terms but not impaired 6,832 6,101 More than 121 days past due from the credit terms but not impaired 85,910 77,139 340,886 200,060 Impaired 40,717 43,892 481,554 386,375 20. TRADE AND OTHER RECEIVABLES (CONTD.) (a) Trade receivables (contd.) Receivables that are neither past due nor impaired Trade receivables that are neither past due nor impaired are creditworthy debtors with good payment records with the Group. At the reporting date, approximately 7% (2020: 7%) of the Group’s trade receivables arose from current receivable balances with related companies, while approximately 27% (2020: 1%) of the Group’s trade receivables arose from current receivable balances with a major healthcare client. None of the Group’s trade receivables that are neither past due nor impaired have been renegotiated during the financial year. Receivables that are past due from the credit terms but not impaired The Group has trade receivables amounting to RM340.9 million (2020: RM200.1 million) that are past due from the credit terms at the reporting date but not impaired. These receivables are unsecured. Based on past experience, the management believes that no allowance for impairment is necessary as these debtors are generally slower in their repayment and the Group is still in active trade with these customers. Receivables that are impaired The Group’s trade receivables that are impaired at the reporting date are as follows: Individually impaired 2021 RM’000 2020 RM’000 Trade receivables - nominal amounts 40,717 43,892 Less: Allowance for impairment (40,717) (43,892) - - 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 payments. These receivables are related to receivables that are aged more than 121 days and not secured by any collateral or credit enhancements.

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