Annual Report 2019

ANNUAL REPORT 2019 251 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2019 47. FINANCIAL INSTRUMENTS (continued) b. Financial risk management objectives and policies (continued) Credit risk and impairment assessment (continued) The table below details the credit risk exposures of the Group’s financial assets and other items which are subject to ECL assessment: Notes External credit rating Internal credit rating 12-month or lifetime ECL Gross carrying amount HK$’000 Financial assets at amortised cost Trade debtors 25 N/A (Note 1) Lifetime ECL (not credit impaired) 144,572 Loss Credit-impaired 24,353 Loan receivables 22 N/A Low risk (Note 2) 12-month ECL 253,497 Amounts due from related parties 44 N/A Low risk (Note 2) 12-month ECL 390,580 Pledged deposits/restricted bank deposits 23 above A (Note 3) N/A 12-month ECL 211,665 Bank balances/deposit in a financial institutions 23 above A (Note 3) N/A 12-month ECL 2,472,165 Other receivables 25 N/A Low risk (Note 2) 12-month ECL 160,160 Contract assets 27 N/A (Note 1) Lifetime ECL (not credit impaired) 215,565 Customers’ deposits under escrow 26 N/A Low risk (Note 2) 12-month ECL 196,665 Notes: 1. Trade debtors and contract assets For trade debtors and contract assets, the Group has applied the simplified approach in HKFRS 9 to measure the loss allowance at lifetime ECL. Except for debtors with significant outstanding balances or credit-impaired and contract assets, the Group determines the expected credit losses on these debtors by using a provision matrix, grouped by debtors’ aging. Contract assets are assessed individually for impairment. As part of the Group’s credit risk management, the Group applies debtors’ aging for its customers. The exposure to credit risk for debtors which are assessed based on provision matrix as at 31 March 2019 within lifetime ECL (not credit impaired).