2018 UEM Edgenta Annual Report

21. TRADE AND OTHER RECEIVABLES (CONT’D.) (a) Trade receivables (cont’d.) Receivables that are impaired The Group’s trade receivables that are impaired at the reporting date are as follows: Individually impaired 2018 2017 RM’000 RM’000 Trade receivables - nominal amounts 73,749 69,589 Less: Allowance for impairment (73,749) (69,589) – – 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. Amount due from a debtor of a foreign subsidiary Included in the Group’s non-current trade receivables is an amount due from a debtor of a foreign subsidiary, which is non-interest bearing, unsecured and is to be paid in cash. The movement of the amount is as follows: Group 2018 2017 RM’000 RM’000 At 1 January 27,114 30,007 Exchange difference 548 (2,893) At 31 December 27,662 27,114 Less: Allowance for impairment At 1 January (27,114) (30,007) Exchange difference (548) 2,893 At 31 December (27,662) (27,114) Net debt – – (b) Other receivables Amounts due from subsidiaries and related companies Amounts due from subsidiaries, related companies and associates are non-trade related, non-interest bearing and repayable on demand except for an amount due from subsidiaries of RM7,564,912 which bears interest at ranging from 4.75% to 5.00% per annum. All related companies balances are unsecured and are to be settled in cash. The loan to a subsidiary is subordinated to the subsidiary’s borrowing from a financial institution until the borrowing is fully repaid as disclosed in Note 29(a). Further details on related party transactions are disclosed in Note 40. Other receivables that are impaired At the reporting date, the Group and the Company have provided an allowance of RM3.0 million (2017: RM3.0 million) and RM0.2 million (2017: RM0.2 million) respectively. These mainly relate to balances due from third parties which have been long outstanding. NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2018 Management Discussion & Analysis UEM Edgenta Berhad Annual Report 2018 About UEM Edgenta Chairman’s Statement 212