Illustration 32: Life time expected credit losses (provision matrix for short term receivables) Company M, a manufacturer, has a portfolio of trade receivables of CU30 million in 20X1 and operates only in one geographical region. The customer base consists of a large number of small clients and the trade receivables are categorised by common risk characteristics that are representative of the customers' abilities to pay all amounts due in accordance with the contractual terms. The trade receivables do not have a significant financing component in accordance with Ind AS 115. In accordance with paragraph 5.5.15 of Ind AS 109 the loss allowance for such trade receivables is always measured at an amount equal to lifetime expected credit losses. Please use the following information of debtors outstanding: Gross carrying amount Current CU 15,000,000 1-30 days past due CU 7,500,000 31-60 days past due CU 4,000,000 61-90 days past due CU 2,500,000 CU 1,000,000 More than 90 days past due CU 30,000,000 Company M uses following default rates for making provisions: Current 1-30 days 31-60 days 6190 days More than 90 days past due past due past due past due Default rate 10.6% 1.6% 3.6% 6.6% 0.3% Determine the expected credit losses for the portfolio