Agribel Annual Financial Review | Page 24

AGRIBEL HOLDINGS LTD FINANCIAL REVIEW 2021
6 .
INVESTMENT IN COMPANIES
6.1 .
Investment in subsidiary
The company ' s investment in Senwes Limited is accounted for at fair value . The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an ordinary transaction between market participants at the measurement date . The fair value of the investment is the market value as traded in the considered market .
The market value amounted to R 11,50 ( 2020 : R11,00 ) per share as at 30 April 2021 .
COMPANY
% Interest
Total shares
Cost price ( R ' m )
Total net investment ( R ' m )
2021
2020
2021
2020
2021
2020
2021
2020
Senwes Ltd
74.37 %
53.16 %
134 450 748
96 106 723
944
562
1 546
1 057
The directors ' valuation is based on the market price of the Senwes share . The difference between the directors ' valuation ( fair value ) and the cost price is accounted for as a fair value adjustment of the investment and accounted for in the statement of other comprehensive income in the company .
During the year , the company purchased the Senwes investment previously held by Grindrod Trading Holdings ( Pty ) Ltd . The total number of shares purchased amounted to 37 395 213 ( 20,7 % shareholding ) and resulted in a change in ownership . The effective date of the transaction was 31 March 2021 .
The following is the summarised financial information of Senwes Ltd :
Financial position
2021 R ' m
2020 R ' m
Non-current assets
4 159
3 352
Current assets excl bank and cash
6 286
4 815
Cash and cash equivalents
18
65
Trade payables
( 1 855 )
( 791 )
Current liabilities excluding trade payables
( 4 806 )
( 3 679 )
Non-current liabilities
( 467 )
( 859 )
Equity
3 335
2 903
Financial results Revenue
7 575
4 803
Cost of sales and the cost of generating finance income
( 4 933 )
( 3 027 )
Gain on bargain purchase of subsidiary
124
56
Gain on disposal of investment in joint venture
28
-
Distribution , sales and administrative expenses
( 1 912 )
( 1 273 )
Credit loss expense on financial assets
( 28 )
( 8 )
Finance income
5
4
Finance costs
( 102 )
( 90 )
Share of profit /( loss )/ from joint ventures
14
( 19 )
Profit before tax
771
446
Taxation
( 176 )
( 109 )
Profit for the year after tax from continuing operations
595
337
Profit attributable to : Equity holders of the parent
526
303
Non-controlling interest
69
34
Other comprehensive income to be reclassified to profit or loss in subsequent periods ,
net of tax
2
( 1 )
Fair value adjustments of other financial assets
2
( 2 )
Share of other comprehensive income of joint venture
-
1
Total comprehensive income for the year , net of tax
597
336
Summarised cash flows are as follows : ( Used in )/ generated from operating activities
( 12 )
994
Used in investing activities
( 330 )
( 927 )
Used in financing activities
( 178 )
( 33 )
Net ( decrease )/ increase in cash flows
( 520 )
34
22 AGRIBEL ANNUAL FINANCIAL REVIEW 2021 Agribel Holdings Limited Reg nr : 1996 / 017629 / 06