Annual Report - Bina Puri

Notes to and Forming Part of the Financial Statements (Cont’d)15. TRADE AND OTHER RECEIVABLES (Cont’d)Trade receivables comprise amounts receivable from progress billings made to customers on contract worksperformed, sale of development properties, sale of goods, services rendered to customers and retention sumsreceivable.Trade receivables are granted credit periods of between 14 and 90 days while retention sums are receivableupon the expiry of the defect liability periods of the respective construction contracts.The defect liability periods ofthe construction contracts are between 12 and 24 months.The collectibility of receivables is assessed on an ongoing basis.An allowance for doubtful debt is made for any accountconsidered to be doubtful for collection.The allowance for doubtful debts is made based on a review of all outstandingaccounts at the balance sheet date.A considerable amount of judgement is required in assessing the ultimate realisationof these receivables, including the creditworthiness and the past collection history of each customer. If the financialcondition of customers of the Group were to deteriorate, resulting in an impairment of their ability to make payments,additional allowances may be required.Other receivables, deposits and prepayments are from the normal business transactions of the Group.GroupCompany2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000Included in receivables are amounts owing by a companyin which certain directors of the Company havesubstantial financial interests as follows:- trade receivables 882 2,635 – –- other receivables 2,721 761 5 1The currency profiles of the receivables are as follows:Group2007 2006RM’000 RM’000Trade receivables- Ringgit Malaysia 191,119 378,801- Pakistan Rupee 4,778 –- Brunei Dollar 4,608 –- Singapore Dollar 563 422- US Dollar 358 50201,426 379,27378 BINA PURI HOLDINGS BHDAnnual Report 2007