8.1.2 Grainovation (Pty) Ltd
The group had a 50% interest in Grainovation (Pty) Ltd (“Grainovation”) during a portion of the current financial
year and entire prior year (joint venture accounting). Senwes acquired an additional 50% interest in the company,
which increased the investment to 100%, with the effective date being 1 November 2019. This transaction
constituted a business combination achieved in stages, which resulted in Grainovation being accounted for as a
wholly-owned subsidiary from the effective date. The core business activity of Grainvation is the transportation
of grain commodities. The financial year-end is the same as the Senwes Group’s financial year-end. The
registered office of the company is the same as Senwes’ registered office. Refer to note 6.2 for more details on
the acquisition.
The following is the summarised financial information of Grainovation:
2020
R’m
2019
R’m
Statement of financial position of Grainovation:
Non-current assets - 68
Current assets, excluding cash and cash equivalents - 28
Cash and cash equivalents - (6)
Trade payables - (9)
Current financial liabilities, excluding trade payables and bank
overdraft
- (13)
Non-current financial liabilities - (7)
Non-current liabilities - (7)
Equity - 54
50% proportion of the group’s ownership:
Carrying amount of the investment - 27
The revenue and profit of Grainovation are as follows: *
Revenue 153 357
Cost of sales (134) (322)
Other income 7 -
Operating expenses, excluding depreciation (7) (9)
Depreciation (7) (11)
Finance costs (1) (2)
Profit before tax 11 13
Tax - -
Profit after tax 11 13
Group’s share of profit for the year - 6
50% of profit for the year ** 6 7
Prior year adjustments (6) ( 1)
Summarised cash flows of Grainovation are as follows:
Generated from operating activities 19 10
Used in investing activities (21) (7)
Generated from/(used in) financing activities 19 (9)
Net increase/(decrease) in cash flows 17 (6)
* Financial results relates to the six-month period ended 31 October 2019.
** The profit for the year includes a gain of R2 million that was recognised as a result of remeasuring to fair value the equity
interest in Grainovation held before the business combination.
37
SENWESBEL ANNUAL FINANCIAL STATEMENTS 2020 Senwesbel Limited Reg no: 1996/017629/06