ANNUAL REPORT 2016
81
Techno
Dex
Berhad
(627634-A)
34. FINANCIAL INSTRUMENTS (continued)
34.1 FINANCIAL RISK MANAGEMENT POLICIES (continued)
(b) Credit Risk (continued)
(iii) Ageing analysis (continued)
At the end of the reporting period, trade receivables that are individually impaired were those in
significant financial difficulties and have defaulted on payments. These receivables are not secured
by any collateral or credit enhancement.
The collective impairment allowance is determined based on estimated irrecoverable amounts from
the sale of goods, determined by reference to past default experience.
Trade receivables that are past due but not impaired
The Group believes that no impairment allowance is necessary in respect of these trade receivables.
They are substantially companies with good collection track record and no recent history of
default.
Trade receivables that are neither past due nor impaired
A significant portion of trade receivables that are neither past due nor impaired are regular customers
that have been transacting with the Group. The Groups uses ageing analysis to monitor the credit
quality of the trade receivables. Any receivables having significant balances past due or more than
60 days, which are deemed to have higher credit risk, are monitored individually.
(c) 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.
The following table sets out the maturity profile of the financial liabilities at the end of the reporting
period based on contractual undiscounted cash flows (including interest payments computed using
contractual rates or, if floating, based on the rates at the end of the reporting period):-
On demand
or within Two to five
one year
years
Total
The Group
RM RM RM
2016
Hire purchase payables
175,954
-
175,954
Trade payables
186,701
-
186,701
Other payables and accruals
1,806,336
- 1,806,336
Total undiscounted financial liabilities
2,168,991
- 2,168,991
2015
Hire purchase payables
716,452 175,954
892,406
Trade payables
373,288
-
373,288
Other payables and accruals
1,633,305
- 1,633,305
Total undiscounted financial liabilities
2,723,045
175,954 2,898,999
NOTES TO THE
FINANCIAL STATEMENTS
(continued)
