REPORTING CONTEXT ABOUT US OUR OPERATING CONTEXT OUR PERFORMANCE OUR LEADERSHIP GOVERNANCE OUR FINANCIAL STATEMENTS SHAREHOLDERS' CORNER The table below shows the credit quality and the maximum exposure to credit risk as per the Group’s policy and year-end classification. The amounts are gross of loss allowances. An analysis of changes in the gross amount and the corresponding ECL allowances in relation to long-term receivable is as follows: THE COMPANY 2022 MUR '000 2021 MUR '000 Gross carrying amount as at 1 July 196 136 263 901 Additions 14 332 96 321 Repayments (119 484) (173 519) Exchange differences (4 807) 9 433 At 30 JUNE 86 177 196 136 Credit impaired Stage 3 2022 MUR '000 2021 MUR '000 ECL allowance as at 1 July 165 806 152 374 (Decrease)/increase in exposure (79 629) 13 432 At 30 JUNE 86 177 165 806 ECL on long-term receivables has been classified in administrative expenses. 11. INVENTORIES THE GROUP THE COMPANY 2022 MUR '000 2021 MUR '000 2022 MUR '000 2021 MUR '000 Raw and packaging materials 590 380 447 235 521 225 404 028 Spare parts and consumables 180 527 154 916 147 426 125 053 Finished goods 612 211 502 370 444 951 389 850 Work in progress 46 509 38 102 46 509 38 102 Goods in transit 91 664 66 220 59 310 20 726 1 521 291 1 208 843 1 219 421 977 759 The cost of inventory recognised as an expense includes an impairment of MUR 31.9m (2021: a net reversal of impairment of MUR 1.7m) for the Group and an impairment of MUR 27.7m (2021: a net reversal of impairment of MUR 5.3m) for the Company in respect of write-downs of inventory to net realisable value. The reversal in prior year is due to an increase in net realisable value following change in economic circumstances. The inventories have been pledged as security for borrowings and are valued on a weighted average cost basis. 10. LONG-TERM RECEIVABLES AT AMORTISED COST (continued) 12. TRADE AND OTHER RECEIVABLES THE GROUP THE COMPANY 2022 MUR '000 2021 MUR '000 2022 MUR '000 2021 MUR '000 Trade receivables (net of provisions) 516 964 442 418 296 576 205 727 Other receivables* 92 896 66 232 7 067 19 393 Prepayments 23 467 31 227 23 467 29 512 Receivables from group companies (net of provisions): - Enterprises in which ultimate holding company has significant interest 73 158 69 609 73 158 69 609 - Subsidiary companies – – 8 597 7 356 706 485 609 486 408 865 331 597 Before accepting any new credit customer, the Group assesses the potential customer’s credit worthiness and defines credit limits for the customer. Limits and scoring attributed to customers are reviewed twice a year. Out of the trade receivables balance at end of the year, MUR 65.6m (2021: MUR 69.5m) is due from the Group’s largest customer. There are no other customers who represent more than 11% (2021: 14%) of the total balance of trade receivables of the Group. The credit period is 30 days end of month for the Group and the Company. * Other receivables comprise of advances made to suppliers, staff loans and other sundry debtors. (a) The carrying amounts of trade receivables and receivables from group companies are denominated in the following currencies: THE GROUP THE COMPANY 2022 MUR '000 2021 MUR '000 2022 MUR '000 2021 MUR '000 Mauritian Rupee 377 552 269 123 378 331 278 983 US Dollar 13 702 4 741 – – Euro 198 868 238 163 – 3 709 590 122 512 027 378 331 282 692 (b) Expected credit loss for trade receivables and amount due from related parties The Group applies the IFRS 9 simplified approach to measure expected credit losses. It is determined by the Group and the Company using provision matrix which makes use of the roll rate model. It refers to the percentage of customers who become increasingly bad on their accounts. In order to assess the expected credit losses, the trade receivables have been grouped based on their credit risk characteristics and the days past due. The letters of credit and other forms of credit insurance are considered integral part of trade receivables and considered in the calculation of loss allowance. Set out below is the information about the credit risk exposure on the Group’s and the Company’s trade receivables and amount due from related parties. NOTES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 1 75 1 74 Phoenix Beverages Limited Integrated Report 2022 Phoenix Beverages Limited Integrated Report 2022
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