Annual Report 2012 - IOI Group

NOTES TO THEFINANCIAL STATEMENTS42. FINANCIAL INSTRUMENTS (Continued)42.4 Credit risk (Continued)42.4.2 Credit risk exposures and concentration (Continued)From the above table, more than 90% in value of the Group’s financial assets are of “strong” credit quality, with onlythe “receivables” class having past due and impairment. Besides the objective evidence of loss events, it is also theGroup’s policy to provide impairment for any amount past due in ageing brackets above 120 days unless supportedby valid reasons. The table below provides an ageing analysis of past due but not impaired alongside with therationale for deferment of impairment on those past due above 120 days.Estimatedfair valuesPast due but not impairedof collateraland credit1 – 30 31 – 60 61 – 90 91 – 120 >120 enhancementdays days days days days Total heldRM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000Group2012Trade receivables 145,785 11,104 19,362 14,082 75,307 265,640 43,849Other receivables 24 5 4 1 29 63 28145,809 11,109 19,366 14,083 75,336 265,703 43,8772011Trade receivables 195,940 15,504 2,900 - 742 215,086 21,755Other receivables 2,729 22 20 18 207 2,996 50198,669 15,526 2,920 18 949 218,082 21,805Receivables of the Group that are past due but not impaired are merely represented by reputable organisations.The amount past due with ageing brackets above 120 days are from active corporate clients with healthy businessrelationship for whom there are no recent histories of default and there are no concerns on the credit worthinessof the counter parties and the recoverability of these debts.It is the Group’s policy to monitor the financial standing of these receivables on an ongoing basis to ensure thatthe Group is exposed to minimal credit risk.238IOI CORPORATION BERHADAnnual Report 2012