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<strong>Annual</strong> <strong>Report</strong> <strong>2007</strong><br />
<strong>The</strong> <strong>Link</strong> Real Estate Investment Trust<br />
103<br />
Notes to the Consolidated Financial Statements<br />
15 Accounts and other receivables (continued)<br />
A majority of the Group’s rental income is received in cash and there are no specific credit terms given to the tenants. <strong>The</strong><br />
accounts receivable are generally fully covered by the rental deposits from corresponding tenants. <strong>The</strong> ageing analysis of<br />
accounts receivable is as follows:<br />
<strong>2007</strong> 2006<br />
HK$’M<br />
HK$’M<br />
0 – 30 days 47 64<br />
31 – 90 days 2 2<br />
Over 90 days 2 –<br />
51 66<br />
Monthly base rental in respect of retail properties are payable in advance by tenants in accordance with the leasing<br />
agreements while daily gross receipts from carparks are received from the carpark operators in arrears.<br />
16 Cash and cash equivalents and short term deposits<br />
<strong>2007</strong> 2006<br />
HK$’M<br />
HK$’M<br />
Cash in hand 2 2<br />
Cash at bank 22 9<br />
Short term bank deposits with original maturity of less than three months 29 303<br />
Cash and cash equivalents 53 314<br />
Short term bank deposits with original maturity of more than three months 1,475 453<br />
1,528 767<br />
Short term bank deposits at the balance sheet date mature approximately 96 days (2006: 66 days) from the end of the<br />
year/period. <strong>The</strong> effective interest rate at the balance sheet date was 4.09% (2006: 4.07%) per annum.<br />
17 Accounts payable, receipts in advance and accruals<br />
<strong>2007</strong> 2006<br />
HK$’M<br />
HK$’M<br />
Accounts payable 64 37<br />
Receipts in advance 59 11<br />
Accruals 615 284<br />
738 332