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Notes to the consolidated
financial statements
continued
for the year ended 30 June 2017
118
Hyprop Investments Limited
Integrated annual report and consolidated financial statements
2017
11.
Trade and other receivables
June 2017
R000
June 2016
R000
Rent receivable
83 419
51 756
Allowance for doubtful debts
(33 944)
(28 635)
Municipal recoveries
55 462
56 845
Interest receivable
6 704
11 529
Dividend receivable
57 257
39 475
Withholding taxes
8 969
17 473
Credit enhancement fee receivable
17 177
7 372
Prepayments
15 435
8 030
Municipal deposits
2 596
2 235
Other receivables
17 666
12 713
230 741
178 793
Movements in allowance for doubtful debts
Opening balance – 1 July
(28 635)
(10 704)
Acquired through business combination
(14 118)
Allowance for doubtful debts
(18 217)
(33 011)
Receivables written off during the year
10 027
30 022
FCTR adjustment
2 881
(824)
Closing balance – 30 June
(33 944)
(28 635)
Ageing of impaired receivables
Current
3 406
4 149
30 days
3 286
3 592
60 days
3 403
5 320
90+ days
23 849
15 574
33 944
28 635
Ageing of receivables past due but not impaired
30 days
8 757
2 479
60 days
5 495
3 457
90+ days
17 594
4 725
Total
31 846
10 661
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 certain national tenants, a deposit in
the form of cash or a 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
June 2017
R000
June 2016
R000
Cash held on call account as security for municipal and other guarantees
11 962
11 203
Bank balances and cash
1 113 788
187 754
Balance at end of year
1 125 750
198 957