NOTES
7. EVENTS AFTER THE REPORTING PERIOD
Falcon Agricultural Equipment (Pty) Ltd
Senwes acquired a 100% interest in Falcon Agricultural Equipment
(Pty) Ltd (“Falcon”). Falcon operates as an agri-implement manu-
facturer, importer and retailer. The acquisition amounted to R27,7
million plus fair value of operating capital on the effective date. The
acquisition will be funded from normal operating cash flows. The
effective date of acquisition was 1 November 2019. Senwes will
evaluate the fair value of assets obtained and liabilities assumed
and will calculate the goodwill or gain on bargain purchase realised
accordingly (IFRS 3).
Grainovation (Pty) Ltd
Senwes acquired an additional 50% equity interest in Grainovation
(Pty) Ltd (“Grainovation”), which brings the investment to 100%.
Grainovation is a soft commodity logistics company. The acquisi-
tion amounted to R27,7 million. The acquisition will be funded from
normal operating cash flows. The effective date of acquisition was
1 November 2019. This transaction constitutes a business combi-
nation with change in control. Senwes will evaluate the fair value of
assets obtained and liabilities assumed and will calculate the good-
will or gain on bargain purchase realised accordingly.
Except for the above, the directors are not aware of any material
event which occurred after the reporting period and up to the date
of this report.
8. FAIR VALUE OF INSTRUMENTS
The following table summarises fair value measurements recognised
in the statement of financial position or disclosed in the group’s fi-
nancial statements by class of asset or liability and categorised
by level according to the significance of inputs used in making the
measurements:
Carrying
amount
Total
R’m Quoted
prices in
active
markets for
identical
instruments
Level 1
R’m 31 October 2019:
Total assets
Total liabilities 747
451 716
450 29
- 2
-
30 April 2019:
Total assets
Total liabilities 481
215 306
215 171
- 4
-
31 October 2018:
Total assets
Total liabilities 762
404 730
404 27
- 5
-
Significant
other
Significant
observable
unobser
inputs vable inputs
Level 2
Level 3
R’m
R’m
Accounts receivable, loans receivable, loans payable, lease liabilities and government sub-
sidy at amortised cost approximate the fair value.
During the period there were no changes in levels or new items
added.
14
senwes interim results 31 october 2019