SENWES ANNUAL FINANCIAL STATEMENTS 2022
Agrinet ( Pty ) Ltd The Agrinet ( Pty ) Ltd overdraft facility of R90 million was settled in full during the current year ( 2021 : R72 million utilised ). The facility bore interest at a sub-prime linked rate and was secured by inventory , margined at 60 % up to maximum extendable amount of R60 million and the remainder to be secured by sound ceded debtors , margined at 55 %, with an extendable amount of R30 million .
Carpe Diem Raisins ( Pty ) Ltd ( subsidiary of KLK Landbou Ltd ) The bank overdraft of R89 million ( 2021 : R51 million ) at First Rand Bank has a limit of R165 million ( 2021 : R135 million ), and is secured by a general notarial bond registered over movable assets , plant and equipment and inventory ; cession of KLK Landbou Ltd ' s loan account , Carpe Diem Raisins ( Pty ) Ltd ' s debtors , a short-term insurance policy and Van der Colff Beleggings ( Pty ) Ltd ' s loan account ( non-controlling shareholder ). The facility bears interest at a prime linked rate .
7.2.5 Other financial liabilities
GROUP 2022 R ' m
2021 R ' m
COMPANY 2022 R ' m
Non-current liabilities |
|
|
|
|
AgriRewards 1
|
104 |
66 |
91 |
62 |
Total other financial liabilities |
104 |
66 |
91 |
62 |
2021 R ' m
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 2022 financial year all grain deliveries at Senwes silos , grain procurement , interest-bearing transactions with Agri Credit Solutions and new whole goods sales at Senwes Equipment qualified for the scheme .
During April 2022 the board approved a reward of R50 / tonne ( 2021 : R50 / tonne ) for grain deliveries , R5 / tonne ( 2021 : R5 / tonne ) for grain procurement , 0,35 % of interest-bearing transactions ( 2021 : 0,35 %) and 3 % of turnover on new whole goods at Senwes Equipment ( 2021 : 3 %). The allocation is discounted to a present value using a ROE-linked rate .
The rewards are payable as follow :
Financial year awarded
GROUP 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 2022 38 30 April 2038 104
7.3 Contract liabilities
GROUP 2022 R ' m
2021 R ' m
COMPANY 2022 R ' m
Storage of grain |
3 |
10 |
2 |
10 |
Handling of grain |
17 |
20 |
17 |
20 |
Total |
20 |
30 |
19 |
30 |
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 decrease from the prior year is therefore due to less 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 R30 million ( 2021 : R9 million ).
7.4 Deferred government grants
Group : 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 .
2021 R ' m
GROUP |
|
2022 R ' m |
2021 R ' m |
Balance at the beginning of the year |
15 |
11 |
Received during the year |
- |
7 |
Realised in profit or loss |
( 3 ) |
( 3 ) |
Total |
12 |
15 |
Current |
2 |
3 |
Non-current |
10 |
12 |
Reimagine Agriculture
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