ST Engineering Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) C14 Financial risk management objectives and policies (continued) Expected credit loss assessment (continued) Trade receivables and contract assets (continued) In calculating the expected credit loss rates, the Group considers historical loss rates for each category of customers and adjusts to reflect current and forward-looking macroeconomic factors affecting the ability of the customers to settle the receivables. Based on this assessment, the Group has concluded that the expected credit losses from these trade receivables and contract assets is immaterial. The table below shows the aging and loss allowance analysis of the Group’s trade receivables as at 31 December 2020 and 2019: Not past due 1 – 90 days 91 – 180 days 181 – 360 days > 360 days Total $’000 $’000 $’000 $’000 $’000 $’000 2020 Aerospace Trade receivables and contract assets 573,752 71,256 14,878 24,248 47,761 731,895 Loss allowance (2,338) (7,449) (4,763) (15,120) (45,883) (75,553) Electronics Trade receivables and contract assets 981,518 78,932 15,166 11,162 10,730 1,097,508 Loss allowance (9,306) (1,527) (964) (3,234) (7,880) (22,911) Land Systems Trade receivables and contract assets 260,041 24,445 6,537 2,098 4,028 297,149 Loss allowance (71) (5) (4) (24) (3,593) (3,697) Marine Trade receivables and contract assets 136,898 15,528 356 4,212 11,024 168,018 Loss allowance (2,322) – – – (165) (2,487) 2019 Aerospace Trade receivables and contract assets 864,951 90,674 12,303 11,942 48,685 1,028,555 Loss allowance (15,137) (1,870) (1,004) (5,619) (47,962) (71,592) Electronics Trade receivables and contract assets 1,099,812 67,527 13,064 13,981 10,293 1,204,677 Loss allowance (5,489) (563) (234) (2,011) (10,054) (18,351) Land Systems Trade receivables and contract assets 195,644 29,426 5,132 1,541 4,210 235,953 Loss allowance (74) (8) (20) (7) (4,070) (4,179) Marine Trade receivables and contract assets 78,963 19,355 11,429 6,893 5,229 121,869 Loss allowance (2,208) – – (118) (1,297) (3,623) 20 9 ANNUAL REPORT 2 0 2 0 / CORPORATE OVERVI EW PERFORMANCE REVI EW SUSTAINABI L ITY CORPORATE GOVERNANCE F INANCIAL REPORT