ANNUAL REPORT 2016
80
Techno
Dex
Berhad
(627634-A)
34. FINANCIAL INSTRUMENTS (continued)
34.1 FINANCIAL RISK MANAGEMENT POLICIES (continued)
(b) Credit Risk
The Group’s exposure to credit risk, or the risk of counterparties defaulting, arises mainly from trade and
other receivables. The Group manages its exposure to credit risk by the application of credit approvals,
credit limits and monitoring procedures on an ongoing basis. For other financial assets (including
cash and bank balances), the Group minimises credit risk by dealing exclusively with high credit rating
counterparties.
The Group establishes an allowance for impairment that represents its estimate of incurred losses in
respect of the trade and other receivables as appropriate. The main components of this allowance
are a specific loss component that relates to individually significant exposures, and a collective loss
component established for groups of similar assets in respect of losses that have been incurred but
not yet identified. Impairment is estimated by management based on prior experience and the current
economic environment.
(i) Credit risk concentration profile
The Group does not have any major concentration of credit risk related to any individual customer
or counterparty.
(ii) Exposure to credit risk
As the Group does not hold any collateral, the maximum exposure to credit risk is represented by
the carrying amount of the financial assets at the end of the reporting period.
The exposure of credit risk for trade receivables by geographical region is as follows:-
The Group
2016
2015
RM
RM
Malaysia
11,647,251
8,465,497
(iii) Ageing analysis
The ageing analysis of the Group’s trade receivables (including amount owing by related parties) at
the end of the reporting period are as follows:-
The Group
2016
2015
RM
RM
Neither past due nor impaired
6,332,746
5,516,189
1 to 30 days past due but not impaired
2,470,534
1,838,523
31 to 60 days past due but not impaired
519,309
494,763
61 to 90 days past due but not impaired
657,067
616,022
91 to 120 days past due but not impaired
1,524,485
-
More than 121 days past due but not impaired
143,110
-
5,314,505
2,949,308
Impaired
-
22,158
11,647,251
8,487,655
NOTES TO THE
FINANCIAL STATEMENTS
(continued)
