30.
FINANCIAL RISK MANAGEMENT (CONT'D)
30.1
Credit risk (cont'd)
30.1.1
Trade receivables (cont'd)
New customers are subject to a credit evaluation process and existing customers’ risk profiles
are reviewed regularly with a view to setting appropriate terms of trade and credit limits.
Where appropriate, further sales are suspended and legal actions are taken to attempt
recoveries and mitigate losses.
It is inherent in the Group’s business to make individually large sales to its customers that
may lead to significant concentration of credit risks. Such risks are managed by ensuring that
transactions are only carried out with customers with a reliable financial profile.
The following provides an analysis of the concentration of credit risk in trade receivables:
GROUP
2014
2013
%
%
Customers with debts of RM100,000 and above
48
34
Customers with debts of less than RM100,000
52
66
100
100
The concentration of significant portion of trade receivables on a small number of customers
is managed by ensuring that transactions are only carried out with customers with a reliable
financial profile.
The maximum exposure to credit risk arising from trade receivables is represented by their
carrying amount in the statement of financial position.
The ageing of trade receivables of the Group is as follows:
Individual
Gross
impairment
Net
RM
RM
RM
2014
Not past due
9,300,946
- 9,300,946
1 to 30 days past due
3,249,154
- 3,249,154
31 to 120 days past due
4,037,873
- 4,037,873
Past due more than 120 days
7,817,050 (4,281,481) 3,535,569
15,104,077 (4,281,481) 10,822,596
24,405,023 (4,281,481) 20,123,542
NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2014 (CONT’D)
•
Pentamaster Corporation Berhad
(572307-U)
Annual Report 2014
83
