This item is detailed as follows:
| Description of classes on Trade debtors and other receivables, net |
As of December 31, 2017 ThCh$ |
As of December 31, 2016 ThCh$ |
||||||
| Trade receivables net, current | 163,651,643 | 157,879,383 | ||||||
| Other receivables, net, current | 23,770,793 | 22,453,279 | ||||||
| Total current debtors | 187,422,436 | 180,332,662 | ||||||
| Non-current receivables | 742,414 | 4,624,317 | ||||||
| Total non-current debtors | 742,414 | 4,624,317 | ||||||
| Total debtors | 188,164,850 | 184,956,979 | ||||||
Balances included within this item, in general, do not accrue interest.
There are no restrictions to the provisions for this type of accounts receivable.
It is important to note that the Company has dealers to sell its products through the export markets. The company doesn’t have clients that represent 10% or more than the consolidated revenues during 2017 and 2016; the five most significant clients in relation to total revenues represented 17% and 17.2% in 2017 and 2016, respectively.
The Company has signed agreements with the bigger portion of its dealers. Generally, these agreements are entered for a two-year period, which are automatically renewable. Besides, the Company’s strategy to increase its sales in the most significant export markets depends significantly on the Company’s dealer’s behavior.
Other receivables, current, net, is mainly comprised by bank current accounts, staff accounts receivables and notes receivable from trading debtors.
The impairment analysis of trade debtors is as follows:
| December 2017 | December 2016 | |||||||||||||||
| Portfolio tranche | ThCh$ Gross | ThCh$ prov. | ThCh$ Gross | ThCh$ prov. | ||||||||||||
| Current | 157,287,254 | — | 145,210,066 | — | ||||||||||||
| 1 to 30 days | 19,541,545 | — | 17,440,102 | — | ||||||||||||
| 31 to 60 days | 5,555,253 | — | 5,740,310 | — | ||||||||||||
| 61 to 90 days | 2,596,562 | — | 2,704,676 | — | ||||||||||||
| 91 to 120 days | 813,687 | (86,184 | ) | 2,485,946 | (218 | ) | ||||||||||
| 121 to 150 days | 191,547 | (68 | ) | 1,471,045 | (61 | ) | ||||||||||
| 151 to 180 days | 167,496 | (127 | ) | 1,508,111 | (27,374 | ) | ||||||||||
| 181 to 210 days | 126,933 | (27,032 | ) | 790,967 | (42,810 | ) | ||||||||||
| 211 to 250 days | 68,030 | (1,083 | ) | 600,676 | (83,820 | ) | ||||||||||
| Over 250 days | 3,278,334 | (1,347,297 | ) | 8,364,256 | (1,204,893 | ) | ||||||||||
| Total portfolio by tranche | 189,626,641 | (1,461,791 | ) | 186,316,155 | (1,359,176 | ) | ||||||||||
As of December 31, 2017, 2016 and 2015 the Company´s allowance for doubtful accounts is as follows:
| Change in the consolidated allowance for bad debt | ThCh$ | |||
| Beginning balance January 1, 2015 | 1,867,873 | |||
| Constitution of allowance | 1,928,218 | |||
| Write-offs | (2,097,052 | ) | ||
| Exchange rate difference | (14,937 | ) | ||
| Balance as of December 31, 2015 | 1,684,102 | |||
| Constitution of allowance | 1,614,358 | |||
| Write-offs | (1,909,734 | ) | ||
| Exchange rate difference | (29,550 | ) | ||
| Balance as of December 31, 2016 | 1,359,176 | |||
| Constitution of allowance | 655,748 | |||
| Write-offs | (529,252 | ) | ||
| Exchange rate difference | (23,881 | ) | ||
| Balance as of December 31, 2017 | 1,461,791 | |||
The Company calculates the customer´s debts allowance for sales representing an actual bad debt risk.
In order to determine the allowance, in addition to that indicated in Note 2.6.3, the following criteria are used:
| 1. | Past due debt over 90 days that does not have a payment plan by the client, nor credits of at least 10% of the principal due in the last 30 days. |
| 2. | Returned checks with an aging of 15 days, without payment and payment plan. |
| 3. | Debtors that the management is convinced that the customer will not pay, although the maturity date has not been met. |
| 4. | For the following cases the criterion for making an impairment allowance for bad debt will be as follows: |
| Allowance % | ||||||||
| Reason | Uninsured customer | Insured customer | ||||||
| Death | 100 | % | 10 | % | ||||
| Fraud | 100 | % | 10 | % | ||||
| Change of address, non-locatable | 100 | % | 10 | % | ||||
| Insolvency | 100 | % | 10 | % | ||||
Rejected receivables as of December 31, 2017, corresponds to 67 customers totaling ThCh$ 100,093, while as of December 31, 2016, these amounted to 86 customers in the amount of ThCh$ 178,266. Respect of notes receivable held in legal collection as of December 31, 2017, these correspond to 86 customers with a total of ThCh$ 102,857, while at December 31, 2016, this figure reached 68 customers in the amount of ThCh$91,169.
The portfolio as of December 31, 2017 amounted to ThCh$188,164,850 which represents a total of 11,850 customers from which none of them has refinanced their debts
| UNSECURITIZED PORTFOLIO | SECURITIZED PORTFOLIO | |||||||||||||||||||
| Delinquency tranche | Amount non-renegotiated portfolio gross |
Amount renegotiated portfolio gross |
Amount non-renegotiated portfolio gross |
Amount renegotiated portfolio gross |
Total amount gross portfolio |
|||||||||||||||
| Current | 157,287,254 | — | — | — | 157,287,254 | |||||||||||||||
| 1-30 days | 19,541,545 | — | — | — | 19,541,545 | |||||||||||||||
| 31-60 days | 5,555,253 | — | — | — | 5,555,253 | |||||||||||||||
| 61-90 days | 2,596,562 | — | — | — | 2,596,562 | |||||||||||||||
| 91-120 days | 727,503 | — | — | — | 727,503 | |||||||||||||||
| 121-150 days | 191,479 | — | — | — | 191,479 | |||||||||||||||
| 151-180 days | 167,369 | — | — | — | 167,369 | |||||||||||||||
| 181-210 days | 99,901 | — | — | — | 99,901 | |||||||||||||||
| 211- 250 days | 66,947 | — | — | — | 66,947 | |||||||||||||||
| > 250 days | 1,931,037 | — | — | — | 1,931,037 | |||||||||||||||
| Total | 188,164,850 | — | — | — | 188,164,850 | |||||||||||||||
The portfolio as of December 31, 2016 amounted to ThCh$184,956,979 which represents a total of 12,417 customers from which none of them has refinanced their debts.
| UNSECURITIZED PORTFOLIO | SECURITIZED PORTFOLIO | |||||||||||||||||||
| Delinquency tranche | Amount non-renegotiated portfolio gross |
Amount renegotiated portfolio gross |
Amount non-renegotiated portfolio gross |
Amount renegotiated portfolio gross |
Total amount gross portfolio |
|||||||||||||||
| Current | 145,210,066 | — | — | — | 145,210,066 | |||||||||||||||
| 1-30 days | 17,440,102 | — | — | — | 17,440,102 | |||||||||||||||
| 31-60 days | 5,740,310 | — | — | — | 5,740,310 | |||||||||||||||
| 61-90 days | 2,704,676 | — | — | — | 2,704,676 | |||||||||||||||
| 91-120 days | 2,485,728 | — | — | — | 2,485,728 | |||||||||||||||
| 121-150 days | 1,470,984 | — | — | — | 1,470,984 | |||||||||||||||
| 151-180 days | 1,480,737 | — | — | — | 1,480,737 | |||||||||||||||
| 181-210 days | 748,157 | — | — | — | 748,157 | |||||||||||||||
| 211- 250 days | 516,856 | — | — | — | 516,856 | |||||||||||||||
| > 250 days | 7,159,363 | — | — | — | 7,159,363 | |||||||||||||||
| Total | 184,956,979 | — | — | — | 184,956,979 | |||||||||||||||