| Trade Accounts and Other Receivables, Contract Liabilities and Prepayments |
| 11 | Trade Accounts and Other Receivables, Contract Liabilities
and Prepayments |
Trade Accounts Receivables
| | |
2024 | | |
2023 | |
| | |
| | |
| |
| Trade accounts receivables | |
| 18,255,293 | | |
| 19,171,243 | |
| Less: Expected credit losses | |
| (15,039,662 | ) | |
| (18,202,132 | ) |
| Less: Write-off | |
| Nil | | |
| (927,519 | ) |
| | |
| 3,215,631 | | |
| 41,592 | |
The age analysis of trade accounts
receivables as at the end of the reporting period was as follows:
| | |
Gross carrying amount | | |
Expected credit loss | | |
Expected credit loss rate | |
| | |
2024 | | |
2023 | | |
2024 | | |
2023 | | |
2024 | | |
2023 | |
| Current | |
| 636,305 | | |
| 3,566,177 | | |
| Nil | | |
| (3,524,585 | ) | |
| 0 | % | |
| 99 | % |
| More than 30 days past due | |
| 882 | | |
| 1,114,733 | | |
| Nil | | |
| (1,114,733 | ) | |
| 0 | % | |
| 100 | % |
| More than 60 days past due | |
| Nil | | |
| 2,228,819 | | |
| Nil | | |
| (2,228,819 | ) | |
| 0 | % | |
| 100 | % |
| More than 120 days past due | |
| Nil | | |
| 1,652,053 | | |
| Nil | | |
| (1,652,053 | ) | |
| 0 | % | |
| 100 | % |
| More than 150 days past due | |
| 17,618,106 | | |
| 9,681,942 | | |
| (15,039,662 | ) | |
| (9,681,942 | ) | |
| 85 | % | |
| 100 | % |
| | |
| 18,255,293 | | |
| 18,243,724 | | |
| (15,039,662 | ) | |
| (18,202,132 | ) | |
| | | |
| | |
Set out below is the movement in the allowance
for expected credit losses of trade accounts receivables:
| | |
2024 | | |
2023 | |
| | |
| | |
| |
| As at 1 January | |
| 18,202,132 | | |
| Nil | |
| Provision for expected credit losses | |
| 151,068 | | |
| 18,202,132 | |
| Reversal of expected credit losses | |
| (3,313,538 | ) | |
| Nil | |
| As at 31 December | |
| 15,039,662 | | |
| 18,202,132 | |
| a) | As at December 31, 2024, ECL of USD 15,039,662 (2023: USD 14,888,594) due from a single international
customer, net of credit notes issued for tanks novated back by BPGIC FZE due to the default in payment within the same year. In order
to ascertain an event of potential credit loss from this customer, the Management performed an assessment of any circumstances of which
the Group are aware regarding this customer’s inability to meet its financial obligations including: |
| ● | ongoing
negotiations with the customer and the expected recoverability. and |
| ● | the
failure of a debtor to engage in a repayment plan with the Group. |
| b) | As at December 31, 2023, ECL of USD 3,313,538 relates to amounts due from a UAE based customer, against
which the management has filed a court case and received a verdict in its favor, as per Dubai International Arbitration Centre (DIAC)
court verdict received in July 2024. Consequently, the Group reversed expected credit losses of USD 3,313,538 in 2024. This reversal was
recorded in General and Administration Expenses. The Group has received USD 1,497,414 from this customer as of the date of approval of
these financial statements. |
| c) | Also, during 2023 the management decided to write-off trade
accounts receivables amounting USD 927,519 as there was no reasonable expectation of recovery (2024: nil). |
| d) | For explanation on the Group credit risk management process,
refer Note 24. |
| e) | Trade receivables are non-interest bearing. |
Contract Liabilities
At December 31, 2024, the Group had contract liabilities
of USD 4,208,137 related to storage services (2023: USD 2,539,404). The increase in 2024 was due to the renewal of some contracts.
Set out below is the movement in the contract
liabilities:
| | |
2024 | | |
2023 | |
| | |
| | |
| |
| As at 1 January | |
| 2,539,404 | | |
| 6,222,055 | |
| Deferred during the year | |
| 72,850,592 | | |
| 98,362,872 | |
| Recognised as revenue during the year | |
| (71,181,859 | ) | |
| (102,045,523 | ) |
| As at 31 December | |
| 4,208,137 | | |
| 2,539,404 | |
Revenue recognized during the year from the amount
included in contract liabilities at the beginning of the period. Other Receivables, Prepayments and Other Income
| | |
2024 | | |
2023 | |
| | |
| | |
| |
| Litigation and interest receivables | |
| 1,792,252 | | |
| Nil | |
| VAT receivables | |
| 661,737 | | |
| 794,023 | |
| Due from related parties (Note 21) | |
| 534,993 | | |
| 327,437 | |
| Prepaid expenses | |
| 292,664 | | |
| 407,563 | |
| Advance to employees | |
| 8,349 | | |
| 7,481 | |
| Other receivables and prepayments | |
| 314,184 | | |
| 311,464 | |
| Less: Write-off other receivables and prepayments | |
| (272,257 | ) | |
| Nil | |
| | |
| 3,331,922 | | |
| 1,847,968 | |
Based on the DIAC court verdict received in July
2024 (Note 11b), the Group was awarded interest on overdue charges and recovery of other legal costs from a UAE based customer, amounting
to USD 1,619,416. In addition, interest income of USD 172,836 was recognized during 2024 as post-award interest in accordance with the
court verdict. The gain and interest income have been recorded under Other Income.
|