Senwesbel Consolidated Financial Statements | Page 57

22. NOTES TO THE STATEMENTS OF COMPREHENSIVE INCOME 22.1 DISTRIBUTION, SALES AND ADMINISTRATIVE EXPENSES AND DISCLOSABLE ITEMS GROUP NOTES 2020 R’m 2019 ** R’m Profit from operations is stated after the following: Employee costs (including directors' costs) 22.4, 26.4 (602) (466) (Increase)/decrease in allowance for expected credit loss on revenue from contracts with customers Increase in allowance for expected credit loss on other revenue 11.5 (3) 1 9, 11.5 (5) (15) Bad debt written off (2) (15) Water and electricity (96) (69) Depreciation 2, 4 (95) (55) Maintenance costs (78) (58) Operating lease expense (10) (12) Property (5) (7) Plant and equipment (5) (5) Foreign exchange profit 4 2 Profit on disposal of property, plant and equipment 2 2 Increase in provision for grain risk 19 (2) (9) Impairment of investment net of release of credit guarantee * 8.1.4; 7.1 12 - Merchandise inventory provision part of cost of sales 10.2 10 16 Cost of sales and finance income recognised as an expense (3 037) (1 373) * The investment in Hinterland Group and direct loans to Hinterland SA are assessed annually for impairment. A partial reversal of the impairment at Senwes’ group level was required. Accordingly an impairment reversal of R12 million was recognised. The impairment was calculated, based on the unrecoverable amount (Senwes’ exposure less recoverable amount of Hinterland SA’s assets). ** Change in presentation of finance costs and cost of sales. Refer to note 35. At company level distribution, sales and administrative expenses mainly consist of management fees, listing related costs and directors’ remuneration. 22.2 FINANCE COSTS GROUP COMPANY 2020 2019 ** 2020 2019 R’m R’m R’m R’m Loans from commercial banks (50) (50) (2) (2) Commodity finance (26) (19) - - AgriRewards *** (2) (4) - - Other * (14) (9) - - Total finance costs paid (92) (82) (2) (2) * Other interest mainly includes interest paid on loans payable to joint ventures. ** Change in presentation of finance costs and cost of sales. Refer to note 35. *** The AgriRewards allocation is set off against the applicable revenue stream in terms of IFRS. The interest is non-cash flow in nature . Senwesbel Limited Reg no: 1996/017629/06 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2020 56