Sustainability and Governance Report
Notes to the FINANCIAL STATEMENTS
[Note
28. Financial risk management objectives and policies (cont'd)
(c) Credit risk (cont'd)
Trade receivables
The Group provides for lifetime expected credit losses for external trade receivables using a provision matrix. The provision rates are determined based on the Group's
historical observed default rates analysed in accordance to days past due by grouping of customers based on geographical region. The loss allowance provision as at
31 March 2020 and 31 March 2019 is determined as follows, and incorporates forward looking information such as forecast of economic conditions.
Summarised below is the information about the credit risk exposure on the Group's trade receivables using provision matrix:
31 March 2020
Current
$'000
1 to 30 days
past due
$'000
Gross carrying amount
28
1,005
31 to 60 days
past due
$'000
1,248
Loss allowance provision
28
1,005
1,248
31 March 2019
Gross carrying amount
Loss allowance provision
61 to 90 days
past due
$'000
More than 90 days
past due
Total
$'000
$'000
21
2,302
(16)
(16)
5
2,286
1 to 30 days
31 to 60 days
Current
$'000
past due
past due
61 to 90 days
past due
More than 90 days
past due
Total
$'000
$'000
$'000
$'000
$'000
1,494
1,734
21
3,249
(16)
(16)
1,494
1,734
5
3,233
Information regarding loss allowance movement of trade and other receivables are disclosed in Notes 12 and 13.
Exposure to credit risk
At the end of the reporting period, the Group's and the Company's maximum exposure to credit risk is represented by the carrying amount of each financial
assets in the balance sheets.
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