Ntegrator International Ltd. - Annual Report 2020

91 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2020 24. Financial risk management (continued) (b) Credit risk (continued) The Group’s credit risk exposure in relation to trade receivables, bills receivables, contract assets and unbilled revenue as at 31 December 2020 and 2019 are set out follows. Within 30 to 60 to 91 to More than 30 60 90 120 120 Current days days days days days Total S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 Group At 31 December 2020 Trade receivables 1,914 1,735 594 292 337 852 5,724 Bills receivables - - 535 - - - 535 Contract assets - - - - - 157 157 Unbilled revenue 10,291 - - - - - 10,291 Gross amount 12,205 1,735 1,129 292 337 1,009 16,707 Loss allowance - - - - - (14) (14) Net amount 12,205 1,735 1,129 292 337 995 16,693 At 31 December 2019 Trade receivables 3,893 3,469 1,569 1,366 160 237 10,694 Contract assets - - - - - 112 112 Unbilled revenue 15,879 - - - - - 15,879 Gross amount 19,772 3,469 1,569 1,366 160 349 26,685 Loss allowance - - - - - (71) (71) Net amount 19,772 3,469 1,569 1,366 160 278 26,614 The movements in credit loss allowance are as follows: Group 2020 2019 S$’000 S$’000 Beginning of financial year 71 8 Impairment loss recognised in profit or loss during the financial year 5 63 Reversal of expected credit loss on financial assets (62) - End of financial year 14 71 No other loss allowances are recognised as the management believes that the amounts that are past due are collectible, based on historical payment behaviour and credit-worthiness of the customers. Other financial assets, at amortised cost The Group’s and the Company’s other financial assets recognised at amortised cost mainly comprised of deposits, other receivable from non-related parties, and other receivables from subsidiary corporations. These other financial assets are subject to immaterial credit loss. In determining the ECL, management has taken into account the historical default experience and the financial position of the counterparties, adjusted for factors that are specific to these receivables in estimating the probability of default of each of these other financial assets. For the purpose of impairment assessment, loss allowance is generally measured at an amount equal to 12-month ECL as there is low risk of default and strong capability to meet contractual cash flows. When the credit quality deteriorates and the resulting credit risk of other financial assets increase significantly since its initial recognition, the 12-month ECL would be replaced by lifetime ECL. Other financial assets are written-off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of other receivables to engage in a repayment plan with the group, and a failure to make contractual payments.