Constance Hotels Services Limited | Annual Report 2025

199 ANNUAL REPORT 2025

Notes to the Financial Statements Year ended December 31, 2025

Notes to the Financial Statements Year ended December 31, 2025

13. TRADE AND OTHER RECEIVABLES

13. TRADE AND OTHER RECEIVABLES (CONT’D)

THE GROUP 2025

More than 270 days past due

More than 180 days past due

More than 90 days past due

More than 1 day past due

2024

Current Total MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000

At December 31, 2024

MUR’000 652,500 (101,022) 551,478

MUR’000 652,139 (106,466) 545,673

(a)

Trade receivables

Expected loss rate

2.04%

3.51% 17.53% 52.90% 33.50%

3.20%

Less : Provision for impairment

Gross carrying amount - trade receivables

435,791

110,935

5,909

2,291

97,213

652,139 (88,452) 563,687

Net trade receivables

Less: specific provision Net carrying amount

-

(190)

-

-

(88,262)

435,791

110,745

5,909

2,291

8,951

The carrying amount of trade receivables approximate their fair values.

Loss allowance

(8,883)

(3,884)

(1,036)

(1,212)

(2,999)

(18,014)

(b) Trade receivables are not secured, non interest-bearing and are generally on 30 days term.

Total provision

(8,883)

(4,074)

(1,036)

(1,212)

(91,261)

(106,466)

(c)

Impairment of trade receivables

The closing loss allowances for trade receivables as at December 31, reconcile to the opening loss allowances as follows:

(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.

THE GROUP 2025

2024

To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due.

MUR’000

MUR’000

The expected loss rates are based on the payment profiles of sales over a period of 36 months before December 31, 2025 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.

106,466 (5,444) 101,022

Loss allowance as at January 1,

87,187 19,279 106,466

Loss allowance recognised/(reversed) in profit or loss during the year

At December 31,

(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.

On that basis, the loss allowance as at 31 December 2025 in compliance with IFRS 9 was determined as follows for trade receivables:

14. OTHER ASSETS

More than 270 days past due

More than 180 days past due

More than 90 days past due

More than 1 day past due

Current Total MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 MUR’000 0.21% 1.33% 8.63% 11.22% 67.89% 0.71%

At December 31, 2025

THE GROUP

THE COMPANY

2025

2024

2025

2024

Expected loss rate

MUR’000 105,440 218,997 324,437

MUR’000

MUR’000

MUR’000

446,596

111,760 (8,849) 102,911

2,720 (322) 2,398

1,702

89,722

652,500 (97,093) 555,407

Gross carrying amount - trade receivables

814

Prepayments

144,324 125,030 269,354

664

-

-

(87,922)

Less: specific provision Net carrying amount

7,045 7,859

Others

5,267 5,931

446,596

1,702

1,800

(937)

(1,372)

(207)

(191)

(1,222)

(3,929)

Loss allowance

Others comprise mainly of VAT receivables and deposits.

Total provision

(937)

(10,221)

(529)

(191)

(89,144)

(101,022)