NOTES
11
NOTES
1. RELATED PARTY TRANSACTIONS
1.1 Senwesbel Ltd. (“Senwesbel”)
Dividends of R25,7 million were paid to Senwesbel.
1.2 Trade debtors - Directors
R106,2 million (October 2017: R45,1 million) was owed to the group by
directors on the above-mentioned accounts. As at 31 October 2018,
R0,2 million was in arrears (October 2017: Rnil). At the date of issue
of these financial statements Rnil was in arrears. These accounts are
covered by securities held in terms of the credit policy.
Trade debtors comprise of production credit accounts as well as
other accounts which customers of the company qualify for. Credit
extension, terms of repayment and interest rates in respect of these
loans are in line with company policy, which applies to all customers
of the company.
2. CONTINGENT LIABILITIES
On 24 August 2017 the Competition Commission (“CC”) served an
application on Senwes and Tradevantage to refer the alleged contra-
vention of the order, between the CC and Senwes, that was ratified
by the Tribunal as a court order, to the Tribunal with a request of an
administrative penalty. Senwes is opposing the application and deny-
ing the allegations. Notwithstanding numerous attempts to settle the
matter, the trial is to continue and has been scheduled for March 2019
with final arguments in May 2019.
3. NEW BUSINESS AND GROUP STRUCTURE
3.1 Business combinations: Staalmeester (Pty) Ltd
During the period under review Senwes Equipment acquired a
75% interest in Staalmeester (Pty) Ltd. Staalmeester operates as an
agri-implement manufacturer, importer and retailer. The effective date
of the acquisition was 1 October 2018. Senwes holds this investment
through one of its wholly-owned subsidiaries.
SENWES STAALMEESTER
GROUP
(PTY) LTD
Fair value of assets acquired
and liabilities assumed:
Fair value of net assets
Control obtained
Value of property, plant and equipment
obtained
Consideration paid
Goodwill
R’m
R’m
21 21
B…………. 75% 100%
D…………. 25 35
9 14
A………….
C = (AxB)...
E = (D-C)...
16
21
The net assets recognised in the 31 October 2018 interim financial
statements are based on a provisional assessment while the group
assesses whether there are separately identifiable assets and/or lia-
bilities.
senwes interim results 31 october 2018