Annual Report 2016
121
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2016
9.
TRADE AND BILLS RECEIVABLES
– continued
The aging analysis of bills receivable presented based on the issue date at respective reporting
dates:
THE GROUP
2016
2015
HK$’000
HK$’000
Less than 60 days
16,969
18,892
61 to 180 days
3,032
4,239
20,001
23,131
Before accepting any new customer, the Group uses an internal credit scoring system to assess
the potential customer’s credit quality and defines credit limits by customer. Limits and scoring
attributed to customers are reviewed twice a year. 82% (2015: 81%) of the trade receivables that
are neither past due nor impaired have the best credit scoring attributable under the internal credit
scoring system used by the Group.
Included in the Group’s trade receivable balance are debtors with aggregate carrying amount of
HK$87,541,000 (2015: HK$80,539,000) which are past due as at the reporting date for which the
Group has not provided for impairment loss as there has not been a significant change in credit
quality and amounts are still considered recoverable based on historical experience. The Group
does not hold any collateral over these balances.
Aging of trade receivables which are past due but not impaired (classified based on
payment due date)
THE GROUP
2016
2015
HK$’000
HK$’000
Less than 90 days
87,541
80,539
The Group determines whether the trade receivables balances were impaired based on objective
evidence of impairment loss. In determining whether receivable balances past due have been
impaired or not, the Group takes into consideration the estimated future cash inflows from such
balances as determined by its experience with, and where appropriate, discussions with, its
customers.
