REC Silicon Annual Report 2019

75 Notes to the consolidated financial statements, REC Silicon Group REC Silicon Annual Report 2019 CREDIT RISK The maximum credit risks related to financial assets are estimated in the table below. 2019 2018 (USD INMILION) CARRYING AMOUNT MAX. EXPOSURE CARRYING AMOUNT MAX. EXPOSURE Cash and bank (incl. restricted bank accounts) 33.8 33.8 36.2 36.2 Trade receivables and accrued revenues 23.2 23.2 29.9 29.9 Other non-current and current receivables 1.6 1.6 4.5 4.5 Finance receivables and short-term loans 3.8 3.8 3.8 3.8 Total 62.4 62.4 74.3 74.3 The bank guarantees, parent company guarantees, and indemnification agreements (see note 29) expose the Group to credit risk. The fair values of bank and parent company guarantees are estimated at zero. The maximum amount of the indemnification agreements is NOK 270 million and has been recognized in liabilities for NOK 212.7million (USD 22.2million) at December 31, 2019. At December 31, 2019, USD 5.8million of trade receivables were insured by the Export–Import Bank of the United States. Shared characteristics that identify each concentration of trade receivables at December 31 GEOGRAPHICAL 2019 2018 SECTOR 2019 2018 INDUSTRY 2019 2018 China 65% 66% Manufacturing 69% 70% Solar 50% 50% Other Asia 16% 16% Wholesale 27% 29% Electronic 47% 49% Taiwan 8% 8% Other 3% 1% Other 3% 1% North America 3% 5% Japan 4% 3% Europe 4% 2% Hong Kong 0% 0% Total 100% 100% 100% 100% 100% 100% The table above is calculated with respect to gross trade receivables only. The provision for loss on trade receivables is exclusively concentrated on customers in the solar industry in China and Taiwan. The Group is dependent on a small number of customers. In 2019, three customers represented approximately 60 percent of revenue (three customers in 2018 represented 50 percent) for the Group. Approximately 50 percent of the revenue in 2019 for the Solar Materials segment was represented by one customer (one customer in 2018) while the Semiconductor segment consisted of two customers in 2019 (three customers in 2018). Three customers represented approximately 60 percent of total trade receivables for The Group at December 31, 2019 (four customers represented approximately 50 percent at December 31, 2018). Approximately 100 percent of the trade receivables in 2019 for the Solar Materials segment was represented by two customers (three customers in 2018 represented approximately 50 percent), while the Semiconductor segment consisted of two customers that represented approximately 50 percent (four customers in 2018). See note 5 Segment Information above. Generally, a more challenging and competitive market environment increases credit risk due to financially weaker customers and extended payment terms. Amounts overdue but not impaired between 90 and 365 days were associated with one customer for 2019 and zero customers for 2018. Analysis of aging of receivables at December 31, 2019 AGING OF RECEIVABLES PASTDUE (USD INMILLION) TOTAL CARRYING AMOUNT NOTDUE < 30 DAYS >30<90 DAYS >90<365 DAYS >365 DAYS Trade receivables 37.6 17.0 1.1 1.0 4.2 14.4 Provision for loss on trade receivables -14.4 0.0 0.0 0.0 0.0 -14.4 Other non-current and current receivables 1.3 1.3 0.0 0.0 0.0 0.0  Total receivables 24.5 18.2 1.1 1.0 4.2 0.0 Prepaid Costs 6.0 Total trade and other receivables 30.5