NOTES (CONTINUE)
5. FAIR VALUE OF INSTRUMENTS
The following table summarises fair value measurements recognised in the statement of
financial position or disclosed in the group’s financial statements by class of asset or
liability and categorised by level according to the significance of inputs used in making
the measurements:
Carrying
amount Quoted
prices in
active
markets for
identical
instruments Significant
other
observable
inputs Significant
unobservable
inputs
TOTAL
R’m LEVEL 1
R’m LEVEL 2
R’m LEVEL 3
R’m
31 October 2019
Total assets 414 412 - 2
Total liabilities 451 451 - -
Total assets 481 306 171 4
Total liabilities 215 215 - -
30 April 2019
31 October 2018
Total assets 762 730 27 5
Total liabilities 404 404 - -
Accounts receivable, loans receivable, loans payable, lease liabilities and government subsidy at amortised
cost approximate the fair value.
During the period there were no changes in levels or new items added.
6. 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 manufacturer, 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 (“Grainovati-
on”), which brings the investment to 100%. Grainovation is a soft commodities logistics
provider. The acquisition 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 combination with change in control. Senwes will
evaluate the fair value of assets obtained and liabilities assumed and will calculate the
goodwill or gain on bargain purchase realised accordingly.
8
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.
SENWESBEL INTERIM RESULTS 31 OCTOBER 2019