Ntegrator International Ltd. - Annual Report 2020

90 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2020 24. Financial risk management (continued) (b) Credit risk (continued) As the Group and the Company do not hold any collateral, the maximum exposure to credit risk for each class of financial instruments is the carrying amount of that class of financial instruments presented on the consolidated statement of financial position, except as follows: Group 2020 2019 S$’000 S$’000 Corporate guarantees provided to banks on subsidiary corporation’s loans (Note 23) 14,912 11,188 The trade receivables, bills receivables, contract assets and unbilled revenue of the Group comprise of three debtors (2019: three debtors) that individually represented 3% - 23% (2019: 3% - 27%) of trade receivables, bills receivables, contract assets and unbilled revenue. The credit risk for trade receivables, bills receivables, contract assets and unbilled revenue based on the information provided to key management is as follows: Group 2020 2019 S$’000 S$’000 By geographical areas Singapore 16,105 25,226 Myanmar - 4 Vietnam 559 1,384 Other 29 - 16,693 26,614 By types of customers Non-related parties - Government agencies 111 106 - Other companies 16,582 26,508 16,693 26,614 Expected credit loss for financial assets The Group uses a provision matrix to measure the lifetime expected credit loss (“ECL”) allowance for trade receivables, bills receivables, contract assets and unbilled revenue as these items do not have significant financing components. Trade receivables, bills receivables, contract assets and unbilled revenue are grouped based on shared credit risk characteristics and days past due to measure the lifetime ECL by reference to the Group’s historical observed default rates, customer’s ability to pay and adjusted with forward looking information. Trade receivables, bills receivables, contract assets and unbilled revenue are written-off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the Group. Where trade receivables, bills receivables, contract assets and unbilled revenue have been written-off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognised in profit or loss.