2019 - RECONCILIATION OF THE MOVEMENTS ON PROPERTY, PLANT AND EQUIPMENT
BALANCE AT
THE BEGINNING
OF THE YEAR PURCHASES 1 DISPOSALS TRANSFERS 2 DEPRECIATION
BALANCE AT
THE END OF
THE YEAR
R’m R’m R’m R’m R’m R’m
GROUP – 2019
Land 33 4 - (2) - 35
Silos 773 8 - (11) - 770
Buildings and improvements 173 51 - 12 (8) 228
Plant and equipment 279 129 (2) (3) (38) 365
Vehicles 33 18 - (2) (9) 40
Total 1 291 210 (2) (6) (55) 1 438
1
Included in purchases are property, plant and equipment of R21 million which originated from the acquisition of Staalmeester. Refer to
note 6.2 for more details regarding the acquisition.
2
Included in transfers is the transfer of goodwill, R6 million, refer to note 5.1.
3. INVESTMENT PROPERTIES
GROUP
2020
R’m
Cost 1 -
Accumulated depreciation and impairments - -
Total carrying value 1 -
2019
R’m
2020 - RECONCILIATION OF MOVEMENTS ON INVESTMENT PROPERTY
BALANCE AT
THE BEGINNING
OF THE YEAR
PURCHASES/
BUSINESS
COMBINATION 1 DISPOSALS 2
BALANCE AT
THE END OF
THE YEAR
R’m R’m R’m R’m
GROUP – 2020
Land and buildings - 3 (2) 1
Total - 3 (2) 1
1
Consists of investment property of R3 million which originated from the acquisition through business combination of KLK Landbou Ltd.
Refer to note 6.2 for more details regarding the acquisition.
2
Land and buildings with a carrying value of R2 million were sold during the current financial year for R2 million.
3.1. A register of investment properties is available for inspection at the registered office of the relevant company.
3.2. The fair value of land and buildings is estimated at R5,6 million (2019: R7,6 million). The capitalisation method was used as the
valuation method. Higher rates of return, occupation levels and lower expected market-related rental value will reduce fair value.
4. LEASE ASSETS AND LIABILITIES
The group has lease contracts mostly for buildings and plant and equipment used in its operations.
There are several lease contracts that include extension and termination options and variable lease payments, which are further
discussed below.
The group also has certain leases of buildings with lease terms of 12 months or less and leases of low value. The group applies the
‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases.
Senwesbel Limited Reg no: 1996/017629/06 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2020 18