Annual Report 2019

FAR EAST CONSORTIUM INTERNATIONAL LIMITED 228 For the year ended 31 March 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 25. DEBTORS, DEPOSITS AND PREPAYMENTS (continued) Trade debtors mainly represent receivables from renting of properties, use of hotel facilities and sales of properties. Rentals are payable on presentation of demand notes. Hotel room revenue is normally settled by cash or credit card. The Group allows an average credit period of 14 to 60 days to its corporate customers and travel agents. Proceeds from sales of properties are settled according to the payment terms of the sale and purchase agreements. As at 31 March 2019, included in the Group’s trade receivables balance are debtors with an aggregate carrying amount of HK$24,487,000 which are past due at the reporting date. Out of the past due balances, HK$18,344,000 has been past due 90 days or more and is not considered as in default as the default risk of these debtors is low after considering the credit worthiness and past payment history of these debtors and forward-looking information available at the end of the reporting period. The Group does not hold any collateral over these balances. Details of impairment assessment of trade and other receivables for the year ended 31 March 2019 are set out in note 47. As at 31 March 2018, in determining the recoverability of trade debtors, the Group considers the subsequent settlement and any change in the credit quality of the debtors from the date credit was initially granted up to the end of each reporting period. There is no concentration of credit risk due to the large and unrelated customer base. The management believes that there is no further credit provision required in excess of the allowance already made. The Group does not hold any collateral over these balances. Ageing of trade debtors which are past due but not impaired 2018 HK$’000 1–30 days 6,745 Over 30 days 22,086 28,831 Allowance for doubtful debts on the trade debtors and the movements during the year are as follows: 2018 HK$’000 Balance at beginning of the year 10,688 Impairment losses recognised 11,387 Balance at end of the year 22,075