Constance Hotels, Resorts and Golf | Annual Report 2023

176

Financial Statements

Constance Hotels Services Limited

Annual Report 2023

177

Financial Statements

Constance Hotels Services Limited

Annual Report 2023

Notes to the Financial Statements Year ended December 31, 2023

Notes to the Financial Statements Year ended December 31, 2023

13.

TRADE AND OTHER RECEIVABLES

13.

TRADE AND OTHER RECEIVABLES (continued)

THE GROUP

Impairment of trade receivables (continued)

(c)

2023

2022

More than

More than 90 days past due MUR’000

More than 180 days past due MUR’000

More than 270 days past due MUR’000

MUR’000

MUR’000

At December 31,

1 day

2022

Current MUR’000

past due MUR’000

Total

565,288 (87,187)

(a)

Trade receivables

597,095 (129,111)

MUR’000

Less : Provision for impairment

Expected loss rate

3.90%

6.56%

40.60%

52.87%

100.00%

7.40%

478,101

Net trade receivables

467,984

Gross carrying amount - trade receivables Less: guest in house Less: specific provision

355,836 (152,930)

119,108

8,005

12,900

101,246

597,095 (152,930) (103,950)

The carrying amount of trade receivables approximate their fair values.

-

-

-

-

(b) Trade receivables are not secured, non interest-bearing and are generally on 30 days term. (c) Impairment of trade receivables i. The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The expected loss rates are based on the payment profiles of sales over a period of 36 months before December 31, 2023 and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The Group has identified the GDP of the countries in which it sells its goods and services to be the most relevant factors, and accordingly adjusts the historical loss rates based on expected changes in these factors. On that basis, the loss allowance as at 31 December 2023 in compliance with IFRS 9 was determined as follows for trade receivables:

(964)

(493)

(144)

(1,242)

(101,107)

Net carrying amount

201,942

118,615

7,861

11,658

139

340,215

Loss allowance

(7,879)

(7,787)

(3,192)

(6,164)

(139)

(25,161)

Total provision

(8,843)

(8,280)

(3,336)

(7,406)

(101,246)

(129,111)

The closing loss allowances for trade receivables as at December 31, reconcile to the opening loss allowances as follows: THE GROUP 2023 2022 MUR’000 MUR’000 Loss allowance as at January 1, 129,111 106,379 Loss allowance (reversed)/recognised in profit or loss during the year (37,634) 22,732 Receivables written off during the year (4,290) - At December 31, 87,187 129,111

More than More than More than More than

At December 31,

1 day

90 days past due MUR’000

180 days past due

270 days past due

ii. The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable mentioned above. The Group does not hold any collateral as security.

2023

Current MUR’000

past due MUR’000

Total

MUR’000 MUR’000 MUR’000

1.49%

2.29%

20.72%

37.93%

100%

1.75%

Expected loss rate

Gross carrying amount - trade receivables Less: specific provision

14.

OTHER ASSETS

398,797

85,958

3,171

400

76,962

565,288 (78,651)

(843)

(340)

(251)

(255)

(76,962)

THE GROUP

THE COMPANY

397,954

85,618

2,920

145

- -

486,637

Net carrying amount

2023

2023

2022

2022

MUR’000 109,511 113,195 222,706

MUR’000

MUR’000

MUR’000

(5,916) (6,759)

(1,960) (2,300)

(605) (856)

(55)

(8,536)

Loss allowance

758

Prepayments

110,520 78,463

1,058 3,113

Total provision

(310)

(76,962)

(87,187)

3,801 4,559

Others

188,983

4,171

Others comprise mainly VAT receivables and deposits.