18.3 RECONCILIATION OF THE TAX RATE
GROUP
COMPANY
2020
2019
2020
2019
%
%
%
%
Standard tax rate 28,0 28,0 28,0 28,0
Adjusted for:
Non-taxable income (dividends, accounting profits, impairment
reversals)
(4,0) (0,6) (31,4) (31,5)
Other incentive allowances (0,3) (0,3) - -
Non-deductible expenses (capital expenditure, donations, JV profits
or losses)
1,2 0,8 3,7 3,6
Other (0,8) 0,3 (0,3) (0,1)
Prior year adjustment 0,4 0,6 - -
Effective tax rate 24,5 28,8 - -
19. PROVISIONS
GROUP
NOTES
GRAIN RISK
R’m
TOTAL
R’m
Balance as at 30 April 2018 6 6
Increase in provision during the year 9 9
Balance as at 30 April 2019 15 15
Increase in provision during the year 2 2
Balance as at 30 April 2020 19.1 17 17
19.1 GRAIN RISKS
The group is exposed to risks in the grain industry, which include the physical risk of holding inventory and non-compliance
with grain contracts by counter-parties. Estimates for these risks are based on potential shortfalls and non-compliance
with contracts at current market prices.
20. DERIVATIVE FINANCIAL INSTRUMENTS
GROUP
NOTES
2020
R’m
2019
R’m
20.1 CURRENT ASSETS 86 52
Forward purchase contracts 24.1.1.2; 24.5 53 52
Safex futures 24.1.1.2; 24.5 33 -
20.2 CURRENT LIABILITIES 72 30
Forward purchase contracts 24.1.1.2; 24.5 69 28
Foreign exchange contracts 24.1.1.3; 24.5 3 -
Safex futures 24.1.1.2; 24.5 - 2
Fair value gains and losses recognised in profit and loss with regards to derivative financial instruments amounted to a profit of
R62 million (2019: a loss of R22 million).
Senwesbel Limited Reg no: 1996/017629/06 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2020 54