Page 84 - Honeywell Annual Report 2021 comm 10 09 v17a.cdr

Notes to the Financial Statements

For the Year Ended 31 March, 2021 cont’d

The company's historical credit loss experience does not show significantly different loss patterns for different
customer segments. The provision for credit losses is therefore based on past due status without disaggregating into
further risk profiles. The loss allowance provision is determined as follows:

2021 2021 2020 2020
Gross carrying Loss Gross Loss
Amount Allowance Amount Allowance
At default (lifetime) (credit loss) (lifetime)
N'000 N'000 N'000 N'000
Expected Credit Loss Rate:
Less than 30 days 330,198 1,510 802,472 24,374
31-90 days past due 15.762 10,088 26,774 2,718
91-180 days past due 33 8 7,932 2,012
181-365 days past due 1,385 357 6,739 1,710
More than 365 days past due 458,883 458,883 464,619 464,619
806,171 470,846 1,308,536 495,433

Reconciliation of Loss Allowances
The following table shows the movement in the loss allowance (lifetime expected credit losses) for Trade receivables:

2021 2020
N'000 N'000
Opening balance (495,433) (519,634)
Amount recovered 31,431 13,756
Provisions charged/reversed on trade receivables (6,844) 10,445
(470,846) (495,433)

Exposure to currency risk

The net carrying amounts, in Naira, of trade and other receivables, excluding non-financial instruments, are denominated in
Naira. The amounts have been presented in Naira by converting the foreign currency amount at the closing rate at the reporting
date.

Naira amount
Naira 3,245,255 5,008,24

9. Prepayments
Prepaid Import Duty 23,833 1,043,035
Advance Payment to Vendors 2,418,129 821,758
Others 213,898 180,034
2,655,860 2,044,827

World of Possibilities HONEYWELL FLOUR MILLS | ANNUAL REPORT | 2021 85