Page 89 - Learn Africa 2021 Annual Report

Learn Africa Plc
Notes to the Financial Statements (cont’d)

For the year ended 31 March 2021

Inventory write-down that was recognised in cost of sales for the year ended 31 March
2021 was $5,456,800 (31 March 2020: $78,705,993). Inventories are valued at the lower
of cost and net realisable value less costs to sales.

14 Trade and other receivables
31-Mar-21 31-Mar-20
$’000 $’000
Trade receivables 1,620,032 1,717,705
Withholding tax recoverable 73,700 96,033
Staff loan 497 500
Other receivables 54,215 5,675
1,748,444 1,819,913
Allowance for expected credit loss (Note 14.1) (646,180) (615,483)
1,102,264 1,204,430

Other receivable in the current year consists mainly of $42,255,899 advanced to the builder
for the on-going construction of the investment properties, $10,000,000 yet to be paid on
one of the houses sold during the year and other receivables.
Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days
except for receivables from government parastatals which are 300 days.
Set out below is the movement in the allowance for expected credit losses of trade and
other receivables:

Trade receivable
31-Mar-21 31-Mar-20
$’000 $’000
Gross 1,620,032 1,717,705
ECL (646,180) (615,483)
Net 973,852 1,102,222

14.1 Allowance for expected credit loss

Trade Receivable
At 1 April 615,483 481,807
Additional provision during the year (Note 5.8) 30,697 133,676
At 31 March 646,180 615,483

The significant changes in the balances of trade receivables are disclosed in Note 4.2 while
the information about the credit exposures are disclosed in Note 25.

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