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127
Glorious Property
Annual Report 2011
Notes to the Consolidated Financial Statements
(Continued)
31 December 2011
15 Trade and Other Receivables and Prepayments
GROUP
RMB’000
2011
2010
Trade receivables due from third parties (a)
79,055
549,951
Other receivables due from third parties (b)
1,290,427
220,056
Prepayments for construction costs:
2,885,719
2,342,464
Related parties (note 36(b))
1,608,420
1,317,199
Third parties
1,277,299
1,025,265
Prepayments for land premium
5,381,917
4,428,245
Prepaid business tax and other taxes
305,278
132,200
9,942,396
7,672,916
COMPANY
RMB’000
2011
2010
Prepayments to third parties
544
415
(a) Trade receivables are mainly arisen from sales of properties. Proceeds in respect of sales of properties are to be
received in accordance with the terms of the related sales and purchase agreements and customers are generally
required to settle the receivables within 30 days after the date of signing the sales and purchase agreements. The
ageing analysis of trade receivables at the balance sheet dates by due date is as follows:
RMB’000
2011
2010
Within 6 months
34,012
533,699
Between 7 and 12 months
34,705
2,520
Between 13 months and 3 years
10,338
13,732
79,055
549,951
As at 31 December 2011, trade receivables of RMB79,055,000 (2010: RMB549,951,000) were overdue but not
impaired. Trade receivables that are past due but not impaired relate to certain customers that have a good track
record with the Group. Based on past experience, management believes that no provision for impairment is
necessary in respect of these balances as there has not been a significant change in credit quality and the balances
are still considered fully receivable. All trade receivables were denominated in RMB.
(b) As at 31 December 2011, included in other receivables was an amount due from a third party of RMB190,965,000
(2010: Nil) which is unsecured and bears interest at 26% per annum and to be received within one year from the
date of drawdown. Other than this, all other receivables due from third parties are unsecured, interest-free and
repayable on demand. None of these receivables from third parties is either past due or impaired.
As at 31 December 2010 and 2011, the fair values of the Group’s trade and other receivables approximate their
carrying amounts. The maximum exposure to credit risk at each balance sheet date is the carrying value of each
class of receivables mentioned above. The Group does not hold any collateral as security.