2019 UEM Edgenta Annual Report

215 UEM EDGENTA AT A GLANCE MESSAGE FROM OUR LEADERSHIP STRATEGIC FOCUS OPERATIONAL REVIEW SUSTAINABILITY EFFORTS CORPORATE GOVERNANCE INTRODUCTION FINANCIAL REVIEW ADDITIONAL INFORMATION Notes to the Financial Statements For the year ended 31 December 2019 UEM Edgenta Berhad Annual Report 2019 21. TRADE AND OTHER RECEIVABLES (CONT’D.) (a) Trade receivables (cont’d.) 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 46% (2018: 69%) of the Group’s trade receivables arose from current receivable balances with related companies, while approximately 1% (2018: 16%) of the Group’s trade receivables arose from current receivable balances with Ministry of Health (“MOH”). 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 RM326.9 million (2018: RM438.4 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 2019 RM’000 2018 RM’000 Trade receivables - nominal amounts 52,109 73,749 Less: Allowance for impairment (52,109) (73,749) - - 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 not secured by any collateral or credit enhancements.