Fraser & Neave Holdings Bhd Annual Report 2019

A N N U A L R E P O R T 2 0 1 9 06 Financial Statements 199 NOTES TO THE FINANCIAL STATEMENTS 29. FINANCIAL INSTRUMENTS (CONTINUED) (D) CREDIT RISK (CONTINUED) Trade receivables (continued) Comparative information under MFRS 139, Financial Instruments: Recognition and measurement The aging of trade receivables as at 30 September 2018 was as follows: Group Gross RM’000 Individual impairment RM’000 Net RM’000 2018 Not past due 385,345 – 385,345 Past due 1-30 days 56,436 – 56,436 Past due 31-60 days 1,591 – 1,591 Past due 61-90 days 196 – 196 Past due 91-120 days 128 – 128 Past due more than 120 days 3,165 (503) 2,662 446,861 (503) 446,358 The movements in the allowance for impairment losses of trade receivables during the previous financial year were: Note Group RM’000 At 1 October 2017 1,163 Impairment loss recognised 24 491 Impairment loss reversed 24 (551) Impairment loss written off (600) At 30 September 2018 503 Cash and cash equivalents The cash and cash equivalents are held with banks and financial institutions. As at the end of the reporting period, the maximum exposure to credit risk is represented by their carrying amounts in the statement of financial position. These banks and financial institutions have low credit risks. In addition, some of the bank balances are insured by government agencies. Consequently, the Group and the Company are of the view that the loss allowance is not material and hence, it is not provided for. Financial guarantees Risk management objectives, policies and processes for managing the risk The Company provides unsecured financial guarantees to banks in respect of banking facilities granted to certain subsidiaries. The Company monitors the ability of the subsidiaries to service their loans on an individual basis. Exposure to credit risk, credit quality and collateral The maximum exposure to credit risk amounts to RM128,317,000 (2018: RM347,043,000) representing the outstanding banking facilities of the subsidiaries as at end of the reporting period. The financial guarantees are provided as credit enhancements to the subsidiaries’ secured loans. Recognition and measurement of impairment loss As at the end of the reporting period, there was no indication that any subsidiary would default on repayment.