cont'd - KNM Steel Sdn Bhd

106KNM GROUP BERHAD I Annual Report 2012Notes to the Financial Statements (cont’d)28. Financial instruments (Cont’d)28.4 Credit risk (cont’d)The Group uses aging analysis as the primary reporting tool to monitor the credit quality of the tradereceivables. Trade receivables past due 60 days are monitored more regularly on the collection efforts.The aging of trade receivables as at the end of the reporting period was:Gross Impairment NetGroup RM’000 RM’000 RM’00031 December 2012Not past due 209,973 – 209,973Past due 0 - 30 days 53,429 – 53,429Past due 31 - 60 days 21,874 – 21,874Past due 61 - 120 days 36,080 – 36,080Past due more than 120 days 102,934 (48,603) 54,331424,290 (48,603) 375,68731 December 2011Not past due 234,830 – 234,830Past due 0 - 30 days 66,496 – 66,496Past due 31 - 60 days 6,834 – 6,834Past due 61 - 120 days 9,566 – 9,566Past due more than 120 days 66,569 (49,595) 16,974384,295 (49,595) 334,7001 January 2011Not past due 108,866 – 108,866Past due 0 - 30 days 92,346 – 92,346Past due 31 - 60 days 27,764 – 27,764Past due 61 - 120 days 13,349 (1,042) 12,307Past due more than 120 days 58,157 (44,751) 13,406300,482 (45,793) 254,689The allowance account in respect of trade receivables is used to record impairment losses where theGroup is doubtful of the collection. Doubtful amount will be written off against the allowance account ifrecovery channels are exhausted.