NOTES
NOTES
1. RELATED PARTY TRANSACTIONS
1.1 Senwesbel Ltd (“Senwesbel”)
Dividends of R29 million were paid to Senwesbel.
1.2 Trade debtors - Directors
R108,1 million (October 2018: R106,2m) was owed to the group by
directors on the above-mentioned accounts as at 31 October 2019.
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 group qualify for. Credit extension,
terms of repayment and interest rates in respect of 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 to the Tribunal with a request of an administrative-
penalty. The CC and Senwes have settled this matter without incurring
any penalties. It is therefore resolved and concluded between the CC
and Senwes.
3. NEW BUSINESS COMBINATION
KLK Landbou Ltd
During the period Senwes acquired a 57,44% interest in KLK Landbou
Ltd (“KLK”), which operates as a group of companies in the agricultural
sector, with the effective date 1 July 2019. Subsequent to the effective
date, Senwes obtained an additional 0,21% interest which resulted in
a final shareholding of 57,65%.
Fair value of assets acquired and liabilities assumed, including the
interest change:
R’m
Book value of KLK’s tangible net asset (equity)
(excl. non-controlling interest) A …………......... 362
Share obtained (control) B ……........……. 57,65%
D ………........…. 187
Book value of tangible net assets (equity) obtained
Consideration paid
Bargain purchase
Non-controlling interest (proportionate method)
Amount recognised directly in equity - interest change
C (AxB)….…..….
E (C-D) …………
F (A-C) ....………
G .....………........
208
21
154
* -
* The change in interest in subsidiary is below R0,5 million.
The net assets recognised in the 31 October 2019 interim financial
statements are based on book value, while the group assesses the
fair value of assets acquired and liabilities assumed. Assessment
of further separately identifiable assets and/or liabilities is also in
progress.
senwes interim results 31 october 2019
11