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22. FINANCIAl INSTRumENTS (Cont’d)
22.4 Credit risk
Masterskill Education Group Berhad / Annual Report 2012
99
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
Credit risk is the risk of a financial loss to the Group if an educational sponsor, student or counterparty to a financial
instrument fails to meet its contractual obligations. The Group’s exposure to credit risk arises principally from its receivables
from Perbadanan Tabung Pendidikan Tinggi Nasional (“PTPTN”), other educational sponsors and self-sponsored students.
Receivables
Risk management objectives, policies and processes for managing the risk
Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Evaluations of
students are performed by PTPTN or other educational sponsors before courses are offered to the students.
Exposure to credit risk and credit quality
As at the end of the reporting period, the maximum exposure to credit risk arising from receivables is represented by the
carrying amounts in the statements of financial position.
Management has taken reasonable steps to ensure that receivables that are neither past due nor impaired are stated at
their realisable values. Approximately 97% (31.12.2011: 94%; 1.1.2011: 96%) of trade receivables are due from PTPTN. Any
receivables due from students who have quit, terminated, rejected and withdrawn from their courses are deemed to have
higher credit risk and are monitored individually.
Impairment losses
The Group maintains an ageing in respect to trade receivables only. The ageing of receivables as at the end of the reporting
period was:
Individual Collective
Gross impairment impairment Net
Group
31 December 2012
Rm’000 Rm’000 Rm’000 Rm’000
1 - 30 days 1,065 – – 1,065
31 - 60 days 12,361 – – 12,361
61 - 90 days 8,908 – – 8,908
91 - 120 days 3,351 – – 3,351
More than 120 days 50,139 (24,028) – 26,111
75,824 (24,028) – 51,796
31 December 2011
1 - 30 days 31,134 – – 31,134
31 - 60 days 17,548 – – 17,548
61 - 90 days 14,525 – – 14,525
91 - 120 days 3,349 – – 3,349
More than 120 days 56,650 (17,862) – 38,788
123,206 (17,862) – 105,344
1 January 2011
1 - 30 days 33,830 –
–
31 - 60 days 26,051 –
–
61 - 90 days 23,025 –
–
91 - 120 days 2,062 –
–
More than 120 days 53,216 (11,689) –
138,184 (11,689) –
33,830
26,051
23,025
2,062
41,527
126,495