HSRC Integrated Annual Report 2018/2019

HSRC INTEGRATED ANNUAL REPORT 2018/19 / 135 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019 (Continued) 30.3 Credit Risk Financial assets, which potentially subject the HSRC to the risk of non-performance by counter-parties and thereby subject to concentrations of credit risk, consist mainly of cash and cash equivalents and trade receivables from non-exchange transactions. The entity only deposits cash with major banks with high quality credit standing and limits exposure to any one counterparty. Trade receivables are presented net of the allowance for doubtful debts. The HSRC manages/limits its treasury counter-party exposure by only dealing with well-established financial institutions approved by National Treasury through the approval of their investment policy in terms of Treasury Regulations. In addition, the credit risk exposure emanating from trade receivables is not considered significant as trade is largely conducted with reputable research partners who have had and maintained good relationships with the HSRC in the past. Thus HSRC’s significant concentration risk is with its research partners. The analysis of ageing of receivables that are 30 days and older is as follows: Note 2019 Less than 12 months 2018 March Current 30 days and Above Total Current 30 days and Above Total R’000 R’000 R’000 R’000 R’000 R’000 Trade and other receivables 2 33 729 23 580 57 309 34 523 9 259 43 782 33 729 23 580 57 309 34 523 9 259 43 782 Composition of total trade and other receivables 59% 41% 100% 79% 21% 100%