107
106
STARHILL
GLOBAL
REIT
Annual
Report
FY 2014/15
Notes to the
Financial Statements
Impairment losses
The ageing of trade receivables at the reporting date is:
Gross
Impairment losses
Gross
Impairment losses
30 June 2015
$’000
30 June 2015
$’000
31 December 2013
$’000
31 December 2013
$’000
Group
Not past due
777
(171)
532
(189)
Past due 0 – 30 days
115
(80)
249
(179)
Past due 31 – 120 days
5
(5)
570
(432)
More than 120 days
580
(580)
849
(774)
1,477
(836)
2,200
(1,574)
Trust
Not past due
506
(155)
279
(189)
Past due 0 – 30 days
40
(40)
36
(36)
Past due 31 – 120 days
3
(3)
1
(1)
More than 120 days
36
(36)
8
(8)
585
(234)
324
(234)
The movement in the allowance for impairment in respect of trade receivables during the period was as follows:
Group
Trust
30 June 2015
$’000
31 December 2013
$’000
30 June 2015
$’000
31 December 2013
$’000
At 1 January
(1,574)
(366)
(234)
(252)
Net impairment loss reversed/
(recognised)
649
(1,394)
–
–
Written off
19
109
–
18
Translation differences
70
77
–
–
At 30 June/31 December
(836)
(1,574)
(234)
(234)
The Group’s and the Trust’s historical experience in collection of trade receivables falls within the recorded allowances.
Due to these factors, the Manager believes that, apart from the above, no additional credit risk beyond amounts provided for
collection losses is inherent in the Group’s and the Trust’s remaining trade receivables as these are substantially covered by
security deposits.
10. CASH AND CASH EQUIVALENTS
Group
Trust
30 June 2015
$’000
31 December 2013
$’000
30 June 2015
$’000
31 December 2013
$’000
Cash at bank and in hand
32,884
37,211
9,708
9,738
Fixed deposits with financial
institutions
18,687
20,827
–
4,621
51,571
58,038
9,708
14,359
The weighted average effective interest rates per annum relating to fixed deposits with financial institutions at the balance sheet
date for the Group is 2.9% (2013: 3.0%). Interest rates reprice at intervals of one day to three months (2013: one to three months).
The Trust issued 963,724,106 new units pursuant to the rights issue in August 2009 and received total gross proceeds of
$337.3 million in consideration. Usage of the proceeds is as follows:
Group and Trust
$’000
Gross proceeds from rights issue
337,303
Rights issue expenses and related costs
(9,427)
327,876
Repayment of revolving credit facilities
(50,900)
Payment for acquisition of investment properties
(235,708)
Payment for asset redevelopment costs of Wisma Atria Property
(27,152)
Payment to subscribe for second junior MTNs issued by Ara Bintang Berhad
(10,174)
Balance as at 31 December 2013
3,942
Payment for asset redevelopment costs and capital expenditure of Wisma Atria Property
(3,055)
Balance of net proceeds included in cash and cash equivalents as at 30 June 2015
887
The above utilisations are in accordance with the intended use, and the percentage allocated for the use, of the proceeds of the
rights issue as stated in the announcement dated 22 June 2009 in respect of the rights issue. The balance of net proceeds will be
used for payment of the remaining asset redevelopment costs of Wisma Atria Property.
11. TRADE AND OTHER PAYABLES
Group
Trust
30 June 2015
$’000
31 December 2013
$’000
30 June 2015
$’000
31 December 2013
$’000
Non-current
Deferred income
–
78
–
78
Security deposits
(1)
26,013
23,301
20,422
17,989
26,013
23,379
20,422
18,067
Current
Trade payables
7,260
12,142
3,594
3,650
Accrued expenses
5,231
6,669
1,208
3,797
Amounts due to:
– the Manager
(2)
2,842
2,331
2,842
2,331
– the Property Manager
(2)
609
1,068
609
1,068
– the Trustee
(2)
82
74
82
74
Interest payable
4,722
2,374
3,875
2,292
Deferred income
221
389
221
389
Security deposits
(1)
4,386
6,468
2,950
4,623
Other payables
11,837
11,525
7,817
7,372
37,190
43,040
23,198
25,596
63,203
66,419
43,620
43,663
(1)
Security deposits represent cash deposits received from tenants to secure leases of the Group’s and the Trust’s investment properties.
(2)
The amounts due to the Manager, Property Manager and Trustee are mainly trade in nature, unsecured and interest free.
The Group’s and the Trust’s exposure to liquidity and currency risks related to trade and other payables are disclosed in Notes 13
and 26.
