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