Page 49 - AL MAHA ENG AR-2020.indd

ANNUAL REPORT 2020

Financial Statements for the year ended 31 December 2020
Notes to the financial statements

8. CONTRACT BALANCES (Continued)
The contract is for over a year and the costs are expected to be recovered over the duration
of the contract; and

• Costs to fulfil a contract consists of costs relating directly towards a customer contract
which will generate or enhance the resources of the Company, which in turn will enable
the Company in satisfying the performance obligations as a part of the contract.

b) Contract liabilities at the end of the reporting period comprise the following:

2020 2019
RO’000 RO’000
Advance received from customers 255 112

9. INVENTORIES

2020 2019
RO’000 RO’000
Petroleum products 2,563 3,470
Fuel cards 41 51
General stores and consumables 884 1,056
3,488 4,577
Less: provision for slow and non-moving inventories (105) (55)
(refer note below)
3,383 4,522
The following further note applies:

The movement in provision for slow and non-moving inventories is as follows:
2020 2019
RO’000 RO’000
At the beginning of the year 55 150
Provided during the year (note 21) 50 --
Written back during the year (note 20) -- (95)
At the end of the year 105 55

10. TRADE AND OTHER RECEIVABLES
2020 2019
RO’000 RO’000
Trade receivables 49,682 65,582
Less: allowance for expected credit losses [note b) below] (8,685) (8,075)
40,997 57,507
Prepayments 620 636
Accrued income 12 28
Staff receivables 36 110
Amounts due from related parties [note 18 b)] 41 43
Other advances and receivables 595 601
42,301 58,925

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