8.1.4 Hinterland Holdings (Pty) Ltd (Group)
The group has a 50% interest in Hinterland Holdings (Pty) Ltd (“Hinterland”). The core business activity of Hinterland
is the sale of farming input products and direct delivery transactions such as fuel, fertiliser, seed, etc. and wholesale
business. The financial year-end is the same as the Senwes Group financial year-end. The registered office of the
company is the same as Senwes’ registered office.
The following is the summarised financial information of Hinterland:
2020
R’m
2019
R’m
Statement of financial position of Hinterland:
Non-current assets 730 704
Current assets, excluding cash and cash equivalents 705 760
Cash and cash equivalents 34 26
Trade payables (355) (319)
Provisions (3) (4)
Other current financial liabilities (537) (551)
Non-current liabilities (136) (102)
Non-controlling interest (2) (2)
Equity 436 512
50% proportion of the group’s ownership:
Total carrying amount of the investment 72 98
Carrying amount of Hinterland Group 72 98
Carrying amount of loan to Hinterland SA (Wholesale), classified
as an investment *
26 26
Impairment of Hinterland SA (Wholesale) investment (26) (26)
* During 2016 Senwes Ltd, AFGRI Operations (Pty) Ltd and LRB extended a loan of R130,0 million to Hinterland SA. Senwes
contributed R56,3 million, R26,3 million of which is an interest-free loan with no repayment terms. This loan is therefore
classified as an investment and not loans receivable. The terms relating to the other R30,0 million are interest-free, but
payable on demand. Refer to note 7.1.2.
Reconciliation to carrying amount:
50% of net asset value 218 256
Elimination of unrealised profit on non-monetary assets
contributed to joint venture
(112) (112)
Carrying amount before other adjustments at group level 106 144
Accumulated loss adjustment at group level:
Day 1 adjustment made group intangibles and goodwill (2) (2)
Impairment provision Hinterland SA investment (26) (26)
Additional impairment provision (6) (18)
Carrying amount of the investment 72 98
The impairment provision is calculated based on the unrecoverable amount (Senwes’ exposure less recoverable amount of
Hinterland SA’s assets).
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SENWESBEL ANNUAL FINANCIAL STATEMENTS 2020 Senwesbel Limited Reg no: 1996/017629/06