Senwes Annual Financial Statements 2022 | Page 55

22 . NOTES TO THE STATEMENT OF COMPREHENSIVE INCOME 22.1 Distribution , sales and administrative expenses and disclosable items
SENWES ANNUAL FINANCIAL STATEMENTS 2022
GROUP 2022 R ' m
* 2021 R ' m
COMPANY 2022 R ' m
Notes
Profit from operations is stated after the following :
Employee costs ( including directors ' costs )
22.4 , 26.5
( 1,230 )
( 943 )
( 430 )
( 406 )
Increase in allowance for expected credit loss on financial assets
( 18 )
( 28 )
-
( 18 )
Bad debt written off
( 19 )
( 15 )
( 14 )
( 1 )
Water and electricity
( 156 )
( 132 )
( 100 )
( 94 )
Depreciation
2 , 4
( 157 )
( 139 )
( 81 )
( 71 )
Maintenance costs
( 108 )
( 104 )
( 72 )
( 74 )
Lease expenses ( low value and short-term )
( 24 )
( 13 )
( 30 )
( 27 )
Property
( 11 )
( 6 )
( 25 )
( 22 )
Plant and equipment
( 13 )
( 7 )
( 5 )
( 5 )
Lease expenses ( variable payments )
-
-
( 37 )
( 4 )
Foreign exchange ( loss )/ profit
( 8 )
( 1 )
( 8 )
1
( Increase )/ decrease in provision for grain risk
19.1
( 6 )
42
( 6 )
42
( Impairment )/ impairment reversal of investment and loans to related parties **
8 , 7.1
( 4 )
9
-
( 11 )
Cost of sales : Merchandise inventory provision part of cost of sales
( 7 )
21
-
-
Cost of sales : Purchases
( 7,602 )
( 4,883 )
( 115 )
( 110 )
* Refer to note 34 for details regarding adjusted prior year figures . ** 2021 : 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 .
Also included in the company total for the 2021 year is a movement in impairment of the loans to Thobo Trust , Senwes Graanmakelaars ( Pty ) Ltd and Tradevantage Grain ( Pty ) Ltd to the value of R11 million .
22.2 Finance costs
GROUP
COMPANY
2022 R ' m
* 2021 R ' m
2022 R ' m
* 2021 R ' m
Loans from commercial banks
( 35 )
( 61 )
( 164 )
( 46 )
Commodity finance
( 20 )
( 18 )
( 20 )
( 18 )
AgriRewards ***
( 8 )
( 4 )
( 7 )
( 4 )
Other **
( 38 )
( 17 )
( 28 )
( 19 )
Total finance costs classified as operating costs
( 101 )
( 100 )
( 219 )
( 87 )
Finance costs relating to the lending business
( 133 )
( 112 )
-
( 112 )
Total finance costs classified as cost of sales
( 133 )
( 112 )
-
( 112 )
Total finance costs
( 234 )
( 212 )
( 219 )
( 199 )
* Refer to note 34 for details regarding adjusted prior year figures . ** Other interest includes interest paid on loans payable to joint ventures and lease liability interest accrued .
*** The AgriRewards interest is non-cash flow in nature , and relates to the discounting of the AgriRewards liability . Refer to note 7.2.5 .
22.3 Finance income
GROUP
COMPANY
2022 R ' m
* 2021 R ' m
2022 R ' m
* 2021 R ' m
Loans and other receivables
140
134
3
80
Trade receivables
174
158
2
79
Other loans to related parties
-
37
222
143
AgriRewards allocation **
( 2 )
( 2 )
-
-
Total finance income classified as revenue
312
327
227
302
Finance income
38
20
16
14
Total finance income other than revenue
38
20
16
14
Total finance income
350
347
243
316
* Refer to note 34 for details regarding adjusted prior year figures .
** The AgriRewards allocation is set off against the applicable revenue stream in terms of IFRS .
22.4 Employee costs ( excluding directors ’ costs )
GROUP
COMPANY
Note
2022 R ' m
2021 R ' m
2022 R ' m
2021 R ' m
Total remuneration
1,065
819
368
349
Remuneration and benefits
955
754
286
288
Short-term incentive bonus
105
67
76
57
Equity-settled share-based bonus *
16.2
5
( 2 )
6
4
Pension costs – defined contribution plan
37
32
24
23
Total employee costs
1,102
851
392
372
* Only senior managers qualify for the equity-settled share-based scheme .
The total key management personnel salaries included above and not included in total directors remuneration in note 26.4 amounted to R11 million ( 2021 : R5 million ).
Number
Number
Number
Number
Permanent employees
4,455
4,374
1,094
1,124
Temporary employees
531
724
150
199
Employees at the end of the year *
4,986
5,098
1,244
1,323
* Includes only employees of the company and its subsidiaries .
* 2021 R ' m

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