Agribel Annual Financial Review | Page 49

AGRIBEL HOLDINGS LTD FINANCIAL REVIEW 2021
20 . DERIVATIVE FINANCIAL INSTRUMENTS
GROUP
Notes
2021 R ' m
2020 R ' m
20.1
Current assets
204
86
Forward purchase contracts
24.1.1.2 ; 24.2
203
53
Safex futures
24.1.1.2 ; 24.2
1
33
20.2
Current liabilities
58
72
Forward purchase contracts
24.1.1.2 ; 24.2
5
69
Foreign exchange contracts
24.1.1.3 ; 24.2
-
3
Safex futures
24.1.1.2 ; 24.2
53
-
Fair value gains and losses recognised in profit or loss with regards to derivative financial instruments amounted to R69 million ( 2020 : R21 million ).
21 . CAPITAL OBLIGATIONS AND CONTINGENT LIABILITIES
21.1 Contingent liabilities Senwes guarantees an amount of R100 million ( 2020 : R100 million ) relating to the facility of Hinterland Holdings ( Pty ) Ltd .
As at 30 April 2021 , guarantees of R40 million ( 2020 : R39 million ) are held at ABSA Bank in favour of John Deere , Eskom Holdings , SARS and Transnet .
21.2
Commitments in respect of capital projects
GROUP
2021 R ' m
2020 R ' m
Already contracted
14
23
Authorised by the board but not yet contracted
47
59
Total future capital projects
61
82
22 . Notes to the statement of comprehensive income 22.1 Distribution , sales and administrative expenses and disclosable items
GROUP 2021 2020
Notes
R ' m
R ' m
Profit from operations is stated after the following :
Employee costs ( including directors ' costs )
22.4 ; 26.4
( 943 )
( 602 )
Increase in allowance for expected credit loss on financial assets
9 ; 11.5
( 28 )
( 8 )
Bad debt written off
( 15 )
( 2 )
Water and electricity
( 132 )
( 96 )
Depreciation
2 ; 4
( 139 )
( 95 )
Maintenance costs
( 104 )
( 78 )
Lease expenses ( low value and short term )
( 13 )
( 10 )
Property
( 6 )
( 5 )
Plant and equipment
( 7 )
( 5 )
Foreign exchange ( loss )/ profit
( 1 )
4
Profit on disposal of property , plant and equipment
37
2
Increase in provision for grain risk
19.1
( 42 )
( 2 )
Reversal /( impairment ) of investment and loans to related parties *
7.1 ; 8
9
12
Merchandise inventory provision part of cost of sales
10.2
21
10
Cost of sales and finance income recognised as an expense
( 4 954 )
( 3 037 )
* Includes an impairment of R22 million relating to the investment in Certisure group ( value in use calculated on a discounted cash flow basis ) at group level and a reversal of impairment on a loan provided to Africum Agripet ( Pty ) Ltd of R29 million . ( 2020 : The investment in Hinterland Group and direct loans to Hinterland SA are assessed annually for impairment . The impairment at company level was evaluated as sufficient . An impairment reversal of R12 million was recognised at group level during the prior year . The impairment was calculated , based on the unrecoverable amount ( Senwes ’ exposure less recoverable amount of Hinterland SA ’ s assets )).
At company level the sales , distribution and administrative expenses mainly consist of the management fees , listing related costs and director ' s remuneration .
Agribel Holdings Limited Reg nr : 1996 / 017629 / 06 AGRIBEL ANNUAL FINANCIAL REVIEW 2021
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