Agribel Annual Financial Review | Page 38

AGRIBEL HOLDINGS LTD FINANCIAL REVIEW 2021
7.2.5
Other financial liabilities
GROUP
2021 R ' m
2020 R ' m
Non-current liabilities
AgriRewards 1
66
35
Total other financial liabilities
66
35
1
AgriRewards is a deferred bonus scheme in terms of which Senwes allocates a portion of its profits on an annual basis to customers to reward them for their loyalty during the year . The AgriRewards scheme was launched during August 2016 . The scheme is not automatic and customers have to register to participate . For the 2021 financial year all grain deliveries at Senwes silos , grain procurement , interest-bearing transactions with Senwes Credit / Agri Credit Solutions and new whole goods sales at Senwes Equipment / Agrifriend Equipment qualified for the scheme . During April 2021 the board approved a reward of R50 / tonne ( 2020 : R50 / tonne ) for grain deliveries , R5 / tonne ( 2020 : R5 / tonne ) for grain procurement , 0,35 % of interest-bearing transactions ( 2020 : 0,35 %) and 3 % of turnover on new whole goods at Senwes Equipment / Agrifriend Equipment ( 2020 : 3 %). The allocation is discounted to a present value using a ROE-linked rate . The rewards are payable as follow :
GROUP
Financial year awarded
Present value of award ( R ' m )
Payment date
2017
4
30 April 2033
2018
11
30 April 2034
2019
6
30 April 2035
2020
19
30 April 2036
2021
26
30 April 2037
66
7.3
Contract liabilities
GROUP
2021 R ' m
2020 R ' m
Storage of grain
10
4
Handling of grain
20
5
Total
30
9
Contract liabilities include advances received to deliver storage and handling of grain . All the contract liabilities are short-term in nature . These liabilities will
subsequently realise to grain storage income and grain handling income , respectively under services rendered . The typical timing of payment corresponds
with the delivery of grain and differs from the performance obligation of delivering storage and handling of grain . The contract liability increase from the
prior year is therefore due to early deliveries of grain compared to the prior year . The revenue recognised in profit or loss that was included in the opening
balance of the contract liability amounts to R9 million ( 2020 : R39 million ).
7.4
Deferred government grants
KLK Landbou Ltd
Government grants have been received for the purchase of certain items of plant and equipment . There are no unfulfilled conditions or contingencies
attached to these grants . Deferred government grants are recognised according to the useful life of the assets to which they relate .
GROUP
2021 R ' m
2020 R ' m
Balance at the beginning of the year
11
-
Recognition due to business combination *
-
11
Received during the year
7
2
Realised in profit or loss
( 3 )
( 2 )
Total
15
11
* The recognition of deferred government grants relates to the acquisition of KLK Landbou Ltd . Refer to 6.2 for further details relating to the acquisition .
Current 3 1 Non-current 12 10 Total 15 11
36 AGRIBEL ANNUAL FINANCIAL REVIEW 2021 Agribel Holdings Limited Reg nr : 1996 / 017629 / 06