Agribel Annual Financial Review | Page 44

AGRIBEL HOLDINGS LTD FINANCIAL REVIEW 2021
Expected credit loss movement analysis :
GROUP
2021
2020
R ' m
R ' m
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Allowance for expected
( 48 )
( 54 )
( 30 )
( 132 )
( 36 )
( 49 )
( 19 )
( 104 )
credit losses
Opening balance
( 36 )
( 49 )
( 19 )
( 104 )
( 25 )
( 57 )
( 8 )
( 90 )
New assets originated or purchased
( 92 )
( 112 )
-
( 204 )
( 357 )
-
-
( 357 )
Payments and assets derecognised
82
124
7
213
317
4
1
322
Transfer to stage 1
8
( 45 )
( 32 )
( 69 )
( 37 )
33
-
( 4 )
Transfer to stage 2
( 13 )
50
-
37
65
( 38 )
-
27
Transfer to stage 3
-
-
-
-
-
-
-
-
Amount written off
-
-
-
-
-
-
1
1
Effect of modifications
-
( 5 )
( 4 )
( 9 )
1
( 1 )
( 1 )
( 1 )
Effect of changes in assumptions
3
( 17 )
18
4
-
10
( 12 )
( 2 )
11.6 Trade and other receivables can be summarised as follows :
GROUP
2021
2020
R ' m
R ' m
Current
Debt in arrears
Total
Current
Debt in arrears
Total
Trade receivables
2 957
58
3 015
2 659
80
2 739
Production accounts
2 526
35
2 561
2 358
46
2 404
Current accounts
431
23
454
301
34
335
Current portion of loans and other receivables
291
46
337
330
68
398
Grain debtors
156
-
156
183
-
183
Sundry receivables
828
-
828
519
-
519
Less : allowance for impairment
( 111 )
( 21 )
( 132 )
( 32 )
( 72 )
( 104 )
Total trade and other receivables
4 121
83
4 204
3 659
76
3 735
11.6.1 Current receivables are accounts within current credit terms .
11.6.2 Debt in arrears are accounts outside current credit terms .
11.6.3 The allowance relating to debt in arrears is a specific allowance based on debtors handed over to the legal department .
11.7
As security for Senwes ’ short-term facilities with Absa Bank , all rights and interests in producer debtors and their underlying securities have been
ceded and pledged to Absa Bank . The value of security ceded amounts to R3,6 billion ( 2020 : R3,7 billion ) as at year-end .
11.8 The carrying value read with the portfolio allowance approximates the fair value of trade and other receivables .
12 . INVENTORY HELD TO SATISFY FIRM SALES
GROUP
2021 R ' m
2020 R ' m
Inventory held to satisfy firm sales
10
105
Inventory held to satisfy firm sales represents inventory purchased to satisfy firm sales to the off-taker in respect of agricultural produce , which are payable
by third parties on delivery of such agricultural produce to them . The price of such inventory is hedged on the South African Futures Exchange ( Safex ).
Variations are also set off against these items . Inventory is measured at fair value , which is linked to the Safex price .
13 . DISCONTINUED OPERATIONS
13.1 Discontinued operations : 2021 There were no discontinued operations during 2021 .
13.2 Discontinued operations : 2020 There were no discontinued operations during 2020 .
42 AGRIBEL ANNUAL FINANCIAL REVIEW 2021 Agribel Holdings Limited Reg nr : 1996 / 017629 / 06