NOTES TO THE FINANCIAL STATEMENTS — NOTE 11

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.


NOTES TO THE FINANCIAL STATEMENTS – NOTE 11