SENWES ANNUAL FINANCIAL STATEMENTS 2022
19 . PROVISIONS
|
* GROUP |
COMPANY |
Note |
R ' m |
R ' m |
Balance as at 30 April 2020 |
17 |
17 |
Increase in provisions during the year |
72 |
42 |
Balance as at 30 April 2021 |
|
89 |
59 |
( Decrease )/ increase in provisions during the year |
|
( 15 ) |
6 |
Balance as at 30 April 2022 |
19.1 , 19.2 |
74 |
65 |
* Refer to note 6.1 for details regarding adjusted prior year figures . |
|
|
|
The provisions balance as at 30 April 2022 includes the following :
19.1 Grain risks
The company and group are exposed to risks in the grain industry , which include the physical risk of holding inventory . Estimates for these risks are based on potential shortfalls at current market prices .
19.2 Legal risks
A provision of R9 million was recognised retrospectively , in terms of the IFRS 3 measurement period , based on the fair value of liabilities assumed , for a legal claim against Africum Commodities ( Pty ) Ltd . Refer to note 6.1 .
20 . DERIVATIVE FINANCIAL INSTRUMENTS
GROUP 2022 R ' m
2021 R ' m
COMPANY 2022 R ' m
|
|
Notes |
|
|
|
|
20.1 |
Current assets |
24.1.1.2 ; 24.1.1.3 |
595 |
204 |
594 |
204 |
|
Forward purchase contracts |
|
594 |
203 |
594 |
203 |
|
Foreign exchange contracts |
|
1 |
- |
- |
- |
|
Safex futures |
|
- |
1 |
- |
1 |
20.2 Current liabilities |
24.1.1.2 ; 24.1.1.3 |
59 |
58 |
59 |
58 |
Forward purchase contracts |
|
24 |
5 |
24 |
5 |
Foreign exchange contracts |
|
9 |
- |
9 |
- |
Safex futures |
|
26 |
53 |
26 |
53 |
Fair value gains and losses recognised in profit or loss relating to these balances amounted to a gain of R139 million ( 2021 : R69 million ).
21 . CAPITAL OBLIGATIONS AND CONTINGENT LIABILITIES 21.1 Contingent liabilities
Senwes guarantees an amount of R100 million ( 2021 : R100 million ) relating to the facility of Hinterland Holdings ( Pty ) Ltd . As at 30 April 2022 , guarantees of R44 million ( 2021 : R40 million ) were held at ABSA Bank in favour of John Deere , Eskom Holdings , SARS and Transnet . A letter of comfort to the value of R80 million was issued to Gavilon South Africa ( Pty ) Ltd and shall endure until 30 April 2023 . A letter of comfort to the value of R10 million was issued to Total South Africa ( Pty ) Ltd and shall endure until 31 October 2022 .
A letter of comfort to the value of R500 million was issued to confirm that Senwes has procured adequate funding to acquire three John Deere agencies in Germany . This letter of comfort shall endure until no longer than the end of August 2022 .
Claimants representing ex Suidwes customers issued summons against , Africum Commodities ( Pty ) Ltd (“ AC ”), for an amount of R65 million . AC has applied the proceeds from the sale of grain against debt of customer ( s ) but the Claimants claim that the proceeds must be repaid to the insolvent estate . AC denies any liability and the claim is being defended . AC has been advised that its defence ( s ) has good merits and the risk is the incurrence of legal costs . Due to the nature of the contingent liability , no certainty exists with regards to payouts to be made and the financial effect , as well as the timing , cannot be determined and no reimbursements are receivable .
21.2 Commitments in respect of capital projects
GROUP 2022 R ' m
2021 R ' m
COMPANY 2022 R ' m
Already contracted |
47 |
14 |
36 |
6 |
Authorised by the board but not yet contracted |
88 |
47 |
63 |
22 |
Total future capital projects |
135 |
61 |
99 |
28 |
2021 R ' m
2021 R ' m
52
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