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Hyprop Investments Limited
Group annual financial statements 2016
11.
Trade and other receivables
GROUP
June 2016
R000
GROUP
June 2015
R000
Rent receivable
51 756
19 436
Allowance for doubtful debts
(28 635)
(10 704)
Municipal recoveries
56 845
50 407
Interest receivable
11 529
Dividend receivable
39 475
Withholding taxes
17 473
Prepayments
8 030
5 277
Municipal deposits
2 235
2 644
Other receivables
20 085
20 092
178 793
87 152
The prior year groupings have been restated to reflect greater category detail in line with the
current year disclosures. The total receivables amount has not been affected.
Movements in allowance for doubtful debts
Opening balance – 1 July
(10 704)
(18 557)
Acquired through business combination
(14 118)
Restructure of African Land
9 688
Allowance for doubtful debts
(33 011)
(7 391)
Receivables written off during the year
30 022
5 556
FCTR adjustment
(824)
Closing balance – 30 June
(28 635)
(10 704)
Ageing of impaired receivables
Current
4 149
4 109
30 days
3 592
2 527
60 days
5 320
1 049
90+ days
15 574
3 019
28 635
10 704
Ageing of receivables past due but not impaired
30 days
2 479
2 657
60 days
3 457
300
90+ days
4 725
Total
10 661
2 957
No interest is charged on trade receivables if payment is received within seven days from the date of invoice. Thereafter interest is charged
at prime plus 2%. The allowance for doubtful debts has been determined on a tenant-by-tenant basis, taking into account the circumstances
of each tenant. The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable. Save for national
tenants, a deposit in the form of cash or bank guarantee is obtained from the tenant in terms of Hyprop’s deposit policy. Furthermore, and
only if required, a deed of suretyship will be obtained from a tenant.
Management believes that there are no significant trade receivables that are doubtful that have not been provided for as doubtful debts or
written off.
12.
Cash and cash equivalents
Cash held on call account as security for municipal and other guarantees
11 203
10 533
Bank balances and cash
187 754
73 308
Balance at end of year
198 957
83 841