SENWES ANNUAL FINANCIAL STATEMENTS 2022
8 . INVESTMENTS IN JOINT VENTURES AND ASSOCIATES
All joint ventures and associates are accounted for by applying the equity method . During the year the group had the following investments in joint ventures and associates :
Joint Ventures SENWK Group The group had a 50 % interest in SENWK ( Pty ) Ltd (“ SENWK ”) until 1 May 2021 when the group obtained an additional 50 % in SENWK ( refer to note 6.1 ). The investment was therefore reclassified to an investment in subsidiary ( refer to note 6.2 ). The core business activities are insurance broking and administrative services . The financial year-end is the same as the Senwes Group financial year-end . The registered office of the company is the same as Senwes ’ registered office .
Bastion Lime ( Pty ) Ltd ( Group ) The group has a 50 % interest in Bastion Lime ( Pty ) Ltd Group (“ Bastion ”). The company ’ s main business objective is the mining and distribution of agricultural lime . The financial year-end is the same as the Senwes Group financial year-end . The registered office of the company is the same as Senwes ' registered office .
Molemi Sele Management ( Pty ) Ltd The group has a 35,7 % interest in Molemi Sele Management ( Pty ) Ltd . Molemi Sele Management ( Pty ) Ltd is the owner of a cell within Guardrisk Life . The arrangement enables Guardrisk , a registered licensed cell captive insurer , to provide long-term insurance and to offer third party insurance policies to customers of the shareholders . The financial year-end is the same as the Senwes Group financial year-end . The registered office of the company is the same as Senwes ’ registered office .
Silocerts ( Pty ) Ltd The group has a 50 % interest in Silocerts ( Pty ) Ltd (“ ESC ”). ESC deals with the electronic issuing and trading of silo certificates . The financial year-end is the same as the Senwes Group financial year-end . The principal place of business of ESC is in Johannesburg , Gauteng .
Associates RealFin Collective Investment Scheme A hedge fund was established on a 50 %: 50 % basis with Absa Bank . Both parties contributed R25 million to the hedge fund upon the establishment of the fund . The plan is to grow the fund with external investors . In this partnership Absa Bank is responsible for the CAT IIA license and also provides access to potential investors . Senwes is responsible for research and trading advice as well as generating returns on the investment . Both parties are responsible for governance and risk management . The fund ' s principal place of business is South Africa .
Botselo Mills ( Pty ) Ltd The group has a 34,9 % share in Botselo Mills ( Pty ) Ltd (" Botselo Mills "). Botselo Mills deals with the production of a wide range of maize products as well as production of value added products . The financial year-end is the same as the Senwes Group financial year-end . The principal place of business of Botselo Mills is in Delareyville , North West .
The following is the consolidated summarised financial information of joint ventures and associates :
Statement of financial position : Non-current assets |
334 |
311 |
Current assets , excluding cash and cash equivalents |
250 |
330 |
Cash and cash equivalents |
125 |
166 |
Trade payables |
( 161 ) |
( 218 ) |
Provisions |
( 6 ) |
( 8 ) |
Other current financial liabilities |
( 2 ) |
( 1 ) |
Non-current liabilities |
( 108 ) |
( 124 ) |
Non-controlling interest |
( 17 ) |
( 14 ) |
Equity |
415 |
442 |
Proportion of the group ' s ownership in joint venture equity |
63 |
80 |
Proportion of the group ' s ownership in associate equity |
103 |
101 |
Proportion of other investor ' s ownership in joint venture and associate equity |
249 |
261 |
The total revenue and profit of joint ventures and associates are as follows : Revenue |
1,167 |
2,082 |
Cost of sales |
( 835 ) |
( 1,590 ) |
Operating expenses , excluding depreciation , amortisation and impairment loss |
( 262 ) |
( 425 ) |
Depreciation and amortisation |
( 24 ) |
( 33 ) |
Other income |
41 |
37 |
Investment income |
1 |
15 |
Finance costs |
( 16 ) |
( 23 ) |
Profit before tax |
72 |
63 |
Tax |
( 16 ) |
( 15 ) |
Profit after tax |
56 |
48 |
Group ' s share of profit from joint ventures * |
21 |
19 |
Group ' s share of profit /( loss ) from associates * |
4 |
( 5 ) |
Other investor ' s share of profit from joint ventures and associates |
31 |
34 |
Dividends received from joint venture |
( 2 ) |
( 3 ) |
Summarised cash flows of joint ventures and associates are as follows : Generated from operating activities |
63 |
272 |
Used in investing activities |
( 9 ) |
( 17 ) |
Used in financing activities |
( 22 ) |
( 244 ) |
Net increase in cash flows |
32 |
11 |
|
GROUP |
|
COMPANY |
|
|
2022 R ' m |
2021 R ' m |
2022 R ' m |
2021 R ' m |
Total carrying amount of joint ventures and associates |
110 |
149 |
31 |
34 |
2022 R ' m
2021 R ' m
42
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