135 ANNUAL REPORT 2024 Notes to The Financial Statements 31 December 2024 18. Trade and other receivables Group Company 2024 2023 2024 2023 $ $ $ $ Current : Trade receivables: Non-related parties 23,287,120 23,357,899 6,776,872 8,242,572 Subsidiaries – – 8,004,848 7,548,451 Associates 12,480 35,672 12,480 29,483 Less: allowance for impairment – non-related parties (432,295) (415,663) (49,094) (50,356) Less: allowance for impairment – subsidiaries – – (2,105,000) (1,582,000) Net trade receivables – subtotal 22,867,305 22,977,908 12,640,106 14,188,150 Other receivables: Short term loans to subsidiaries – – 1,496,704 3,322,456 Long term loans to subsidiaries – – 229,167 391,002 Subsidiaries – – 2,400,285 2,386,251 Advance payments to subsidiary – – 147,370 370,056 Non-related parties 411,739 723,610 1,358 3,907 Less: allowance for impairment - subsidiaries – – (1,435,000) (1,341,000) Net other receivables – subtotal 411,739 723,610 2,839,884 5,132,672 Total net trade and other receivables - current 23,279,044 23,701,518 15,479,990 19,320,822 Non-current: Other receivables: Long term loans to subsidiaries – – – 846,084 Less: allowance for impairment – – – (617,000) Total other receivables – non-current – – – 229,084 Total trade and other receivables 23,279,044 23,701,518 15,479,990 19,549,906 The non-trade amounts due from subsidiaries are unsecured, interest-free and are repayable on demand. The short term loans to subsidiaries are unsecured, bear interest at 7.2% to 8.2% (2023: 7.0% – 8.3%) per annum and are repayable on demand. The short term and long term loans receivables from the subsidiaries, Megachem India, amounted to $750,433 and Megachem Australia, amounted to $902,369 were converted to additional costs of investment in these two subsidiaries (see Note 14). The long term loans to subsidiaries are unsecured, bear interest at 1.8% (2023: 1.8% and 7.8%) per annum and have an average maturity of 1 year from the end of the reporting year (2023: 2 and 6 years). The carrying values of trade and other receivables approximate their fair values due to the short-term maturity. Certain trade and other receivables are pledged as security for banking facilities as at 31 December 2024 and 31 December 2023 (see Note 25). The expected credit losses (“ECL”) on the trade receivables are based on the simplified approach to measuring the ECL which uses a lifetime ECL allowance approach for all trade receivables recognised from initial recognition of these assets. These assets are grouped based on shared credit risk characteristics and the days past due for measuring the ECL. The allowance matrix is based on the historical observed default rates (over a year of 36 months) over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date the historical observed default rates are updated and changes in the forward-looking estimates are analysed.
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