Senwes Annual Financial Statements 2022 | Page 57

SENWES ANNUAL FINANCIAL STATEMENTS 2022
24.1.1.3 Foreign exchange risk
The group has exposure to fluctuations in mainly the rand / US dollar and rand / euros exchange rate in respect of imports and exports . Foreign currency transactions are mainly concluded for the purchasing and selling of merchandise , processed goods and other commodities ( raisins ). Foreign exchange contracts are concluded for specific transactions to hedge against fluctuations in exchange rates .
At year-end the group had the following assets , liabilities and forward exchange contracts denominated in foreign currency in the following amounts :
GROUP
2022 R ' m
2021 R ' m
Foreign currency in US dollars
115
1
Foreign currency in US dollars ( zero cost collar options )
71
-
Trade receivables denominated in US dollars
72
43
Trade receivables denominated in euro
3
-
Trade receivables denominated in GBP
2
-
Forward exchange contracts denominated in US dollars
126
19
Forward exchange contracts denominated in euros
421
30
Forward exchange contracts denominated in NZ dollars
-
1
Trade and other payables denominated in US dollars
-
( 78 )
Trade and other payables denominated in euros
( 1 )
( 38 )
Total
809
( 22 )
Foreign exchange sensitivity analysis
An assessment of the group ' s sensitivity to the exchange rate shows that should the rand strengthen by 10 %, the group ' s profit before tax would decrease by R40 million ( 2021 : R8 million increase ). A 10 % weakening of the rand versus the exchange rate , would result in a profit ( 2021 : loss ) of the same amount .
24.1.1.4 Interest rate risk
Funding The group is naturally hedged against fluctuating interest rates to a large extent since interest-bearing debt is mainly utilised for assets earning interest at fluctuating rates .
2022 GROUP Non-interestearning assets
Interestearning assets
Interest rate risk
Notes
Assets R ' m
Property , plant and equipment
2
2,334
2,334
-
Investment properties
3
2
2
-
Right-of-use assets
4
29
29
-
Goodwill and intangible assets
5
161
161
-
Investment in joint ventures and associates
8
110
110
-
Other non-current assets
7.1.1 , 18.2
100
100
-
Inventory
10
1,941
1,941
-
Trade and other receivables ( current )
11
4,401
-
4,401
Loans and other receivables ( non-current )
7.1.2 , 9
1,302
-
1,302
Inventory held to satisfy firm sales
12
47
47
-
Cash and short-term deposits
7.1.4
87
-
87
Other current assets
7.1.2 , 20.1 , 29
597
-
597
Total
11,111
4,724
6,387
Interest-bearing liabilities
4 , 7.2.1 , 7.2.2 , 7.2.3 , 7.2.4
( 5,572 )
Net exposure to interest rate risk ( limited to Rnil )
-
2021 GROUP Non-interestearning assets
Interest earning assets
Interest rate risk
Notes
Assets R ' m
Property , plant and equipment
2
2,273
2,273
-
Investment properties
3
13
13
-
Right-of-use assets
4
51
51
-
Goodwill and intangible assets
5
133
133
-
Investment in joint ventures and associates
8
149
149
-
Other non-current assets
7.1.1 , 18.2
151
151
-
Inventory
10
1,846
1,846
-
Trade and other receivables ( current )
11
4,204
-
4,204
Loans and other receivables ( non-current )
7.1.2 , 9
1,376
-
1,376
Inventory held to satisfy firm sales
12
10
10
-
Cash and short-term deposits
7.1.4
18
-
18
Other financial assets
7.1.1
1
1
-
Other current assets
7.1.2 , 20.1
225
-
225
Total
10,450
4,627
5,823
Interest-bearing liabilities
4 , 7.2.1 , 7.2.2 , 7.2.3 , 7.2.4
( 4,630 )
Net exposure to interest rate risk ( limited to Rnil )
-
Interest costs are naturally hedged in instances where interest-earning assets exceed interest-bearing liabilities . Interest rates are hedged by means of financial instruments in times of high volatility or when interest-bearing liabilities significantly exceed interest-earning assets .

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