Senwes Annual Financial Statements 2022 | Page 46

SENWES ANNUAL FINANCIAL STATEMENTS 2022
10 . INVENTORY
COMPANY
2022
2021
R ' m
R ' m
R ' m
R ' m
R ' m
R ' m
R ' m
R ' m
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Gross mortgage loans
-
-
16
16
-
-
28
28
Allowance for expected credit losses
-
-
-
-
-
-
( 2 )
( 2 )
Opening balance
-
-
( 2 )
( 2 )
-
( 1 )
( 12 )
( 13 )
New assets originated or purchased
-
-
-
-
-
-
-
-
Payments and assets derecognised
-
-
-
-
-
1
10
11
Transfer to stage 1
-
-
-
-
-
-
-
-
Transfer to stage 2
-
-
-
-
-
-
-
-
Transfer to stage 3
-
-
-
-
-
-
-
-
Amount written off
-
-
2
2
-
-
-
-
Effect of changes in assumptions
-
-
-
-
-
-
-
-
Net mortgage loans
-
-
16
16
-
-
26
26
Movements in stages during the year :
Stage 1 to Stage 2
-
-
-
-
-
-
-
-
Stage 1 to Stage 3
-
-
-
-
( 24 )
-
24
-
Stage 2 to stage 1
-
-
-
-
-
-
-
-
Stage 2 to stage 3
-
-
-
-
-
( 1 )
1
-
Total Movements
-
-
-
-
( 24 )
( 1 )
25
-
Refer to note 24.1.2 Credit risk , for details regarding classification of accounts into stages and events leading to transfers between stages .
GROUP 2022 R ' m
2021 R ' m
COMPANY 2022 R ' m
Notes
Merchandise and processed goods
10.1 , 10.2
1,273
1,386
-
-
Consumables
49
47
33
37
Goods in transit
32
20
-
-
Grain commodities
10.3 , 10.4
175
116
175
116
Other commodities
10.6
412
277
-
-
Balance at the end of the year
10.4 , 10.5
1,941
1,846
208
153
2021 R ' m
10.1
10.2
10.3
10.4
Included in merchandise is floor plan inventory of R146 million ( 2021 : R258 million ), which serves as security in terms of an agreement with the relevant supplier of farming equipment .
The merchandise inventory in group of R1 273 million ( 2021 : R1 386 million ) include adjustments to net realisable value and provisions for obsolete stock to the value of R131 million ( 2021 : R123 million ).
Grain commodities represent grain purchased from producers . The price of such inventory is hedged on the South African Futures Exchange ( Safex ). Variance margins are also set off against these items . Consequently the carrying value is equal to the fair value thereof .
Grain inventory has been pledged as security for commodity finance granted by financiers to the value of R92 million ( 2021 : R45 million ). A portion of KLK Landbou Ltd ' s inventory balance has been pledged as security for bonds and finance granted by financiers , to the value of R165 million ( 2021 : R135 million ). Hinterland Holdings Group ' s inventory to the value of R307 million was pledged as security for the facilities of R500 million of the group . At year end , R325 million of the facility had been utilised .
10.5 Inventory in the group is valued using the following methods : - Weighted average cost price - Purchase price - Contract price for grain commodities , thereafter at fair value Inventory is valued at the lower of cost or net realisable value .
10.6 Other commodities consist of raisins and fuel inventory .
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