21. CAPITAL OBLIGATIONS AND CONTINGENT LIABILITIES
21.1 CONTINGENT LIABILITIES
Senwes guarantees an amount of R100 million (2019: R200 million) relating to the overdraft facility of Hinterland Holdings
(Pty) Ltd.
(2019: On 24 August 2018 the Competition Commission (CC) served an application on Senwes and Tradevantage to refer
the alleged contravention of the order to the Tribunal with a request of an administrative penalty. The matter has
subsequently been settled between the CC and Senwes. The settlement agreement consent hearing took place on
6 November 2019. Confirmation of the settlement agreement was granted. No penalties were levied and there were no
financial implications for the group.)
21.2 COMMITMENTS IN RESPECT OF CAPITAL PROJECTS
GROUP
2020
R’m
2019
R’m
Already contracted 23 49
Authorised by the board but not yet contracted 59 137
Total future capital projects 82 186
21.3 OPERATING LEASES – MINIMUM LEASE PAYMENTS
The group has certain non-cancellable operating lease obligations (fixed rental contracts) in respect of equipment and
property with an average period of between three and five years.
GROUP
2020
R’m
2019
R’m
Within one year - 5
More than one year and within five years - 5
Operating lease obligations - 10
The capital commitments and operating leases will be financed by net cash flow from operations and/or loans from financial
institutions.
All material contracts relating to buildings are renewable annually, and escalations are linked to CPI-rates.
The group does not have lease contracts that have not yet commenced as at 30 April 2020.
The disclosure above relates to IAS 17, Leases, the lease standard applied in the prior year. For the current year’s IFRS 16 lease
disclosure, refer to note 4.
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SENWESBEL ANNUAL FINANCIAL STATEMENTS 2020 Senwesbel Limited Reg no: 1996/017629/06