Page 74 - JTC-Annual Report-2025-Eng

JTC Logistics Transportation & Stevedoring Company K.S.C.P
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As at December 31, 2025
(All amounts are in Kuwaiti Dinars)

a) Trade receivables
Trade receivables and accrued income are non-interest bearing and are generally due within 30
days.
The Group applies the IFRS 9 simplified model of recognizing lifetime expected credit losses for
all trade receivables as these items do not have a significant financing component. In measuring
the expected credit losses, trade receivables have been assessed on a collective basis respectively
and grouped based on shared credit risk characteristics and the days past due.
Allowance for expected credit losses is provided for when there is no reasonable expectation of
recovery. Failure to make payments within 365 days from the invoice date and failure to engage
with the Group on alternative payment arrangement amongst others is considered indicators of
no reasonable expectation of recovery and therefore is considered as credit impaired.

There has been no change in the estimation techniques or significant assumptions made during
the current year.
The following table details the risk profile of trade receivables based on the Group’s provision
matrix. As the Group’s historical credit loss experience does not show significantly different loss
patterns for different customer segments, the provision for loss allowance based on past due
status is not further distinguished between the Group’s different customer base.

2025

More than
1-365 days 365 days Total

ECL rate % 1.58% 100% -

Estimated total gross carrying amount at
default 9,556,164 1,753,250 11,309,414

Allowance for expected credit losses (151,308) (1,753,250) (1,904,558)
9,404,856 - 9,404,856

2024

More than
1-365 days 365 days Total

ECL rate % 4.62% 100% -
Estimated total gross carrying amount at
default 7,831,637 1,453,020 9,284,657

Allowance for expected credit losses (361,594) (1,453,020) (1,814,614)
7,470,043 - 7,470,043

72 JTC LogisTiCs TransporTaTion & sTevedoring Company K.s.C.p.