2018 UEM Edgenta Annual Report

21. TRADE AND OTHER RECEIVABLES (CONT’D.) Movements in allowance for expected credit losses (“ECLs”): Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 At 1 January 72,595 82,155 18,304 18,304 Charge for the year (Note 7) 9,935 15,499 – – Reversal of impairment (Note 7) (2,714) (10,218) – – Written off (3,468) (3,025) – – Disposal of a subsidiary – (8,868) – – Exchange differences 441 (2,948) – – At 31 December 76,789 72,595 18,304 18,304 (a) Trade receivables Trade receivables are non-interest bearing and are generally on 30 to 90 days (2017: 30 to 90 days) terms. They are recognised at their original invoice amounts which represent their fair values on initial recognition. Ageing analysis of trade receivables The ageing analysis of the Group’s trade receivables is as follows: Group 2018 2017 RM’000 RM’000 Neither past due nor impaired 215,456 255,100 1 to 30 days past due from the credit terms but not impaired 110,707 114,844 31 to 60 days past due from the credit terms but not impaired 30,440 55,462 61 to 90 days past due from the credit terms but not impaired 12,660 36,293 91 to 120 days past due from the credit terms but not impaired 174,373 31,495 More than 121 days past due from the credit terms but not impaired 110,260 116,711 438,440 354,805 Impaired 73,749 69,589 727,645 679,494 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 69% (2017: 32%) of the Group’s trade receivables arose from current receivable balances with a related company, while approximately 16% (2017: 30%) 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 RM438.4 million (2017: RM354.8 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. Financial Review Stakeholder Information AGM Information 211 Governance Review of Sustainability Activities