30.
FINANCIAL RISK MANAGEMENT (CONT'D)
30.1
Credit risk (cont'd)
30.1.1
Trade receivables (cont'd)
Individual
Gross
impairment
Net
RM
RM
RM
2013
Not past due
7,696,126
-
7,696,126
1 to 30 days past due
4,024,916
-
4,024,916
31 to 120 days past due
3,908,735
-
3,908,735
Past due more than 120 days
6,667,757 (3,613,896)
3,053,861
14,601,408 (3,613,896)
10,987,512
22,297,534 (3,613,896)
18,683,638
Trade receivables that are neither past due nor impaired are creditworthy customers with
good payment record with the Group. None of the Group’s trade receivables that are neither
past due nor impaired has been renegotiated during the financial year.
As at the end of the reporting period, certain trade receivables have exceeded the credit term
allowed. However, no impairment loss is required as these customers have no recent history
of default.
30.1.2
Intercompany balances
The Company provides advances to its subsidiaries and monitors the result of the subsidiaries
regularly.
The maximum exposure to credit risk is represented by their carrying amount in the statement
of financial position.
As at the end of the reporting period, there was no indication that the advances to its
subsidiaries are not recoverable. The Company does not specifically monitor the ageing of
the advances to its subsidiaries.
30.1.3
Financial guarantees
The Company provides unsecured corporate guarantee to financial institutions in respect of
credit facilities granted to certain subsidiaries of the Group.
The maximum exposure to credit risk is disclosed in Note 27, representing the outstanding
credit facilities of the said subsidiaries as at the end of the reporting period. The Company
monitors on an ongoing basis the results of the said subsidiaries and repayments made by
the said subsidiaries.
NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2014 (CONT’D)
Pentamaster Corporation Berhad
(572307-U)
•
Annual Report 2014
84
