Integrated Reports Senwes Financial Review 2018 - Page 29

FINANCIAL REVIEW 5. INVESTMENTS IN JOINT VENTURES AND ASSOCIATE 5.1.1 CERTISURE GROUP 5.1 Joint ventures All joint ventures are accounted for by applying the equity method. The carrying values of the investments in joint ventures are as follows: GROUP COMPANY The group has a 50% interest in the Certisure group. The core business activity is insurance broking and administrative services. 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 the Certisure group: 2018 R’m Notes 2018 R’m 2017 R’m 2018 R’m 2017 R’m Certisure Group 5.1.1 73 71 3 3 Non-current assets Grainovation (Pty) Ltd 5.1.2 19 14 - - Current assets, excluding cash and cash equivalents Grasland Ondernemings (Pty) Ltd (Group) 5.1.3 18 14 2 2 Cash and cash equivalents Hinterland SA (Pty) Ltd (Group) 5.1.4 146 123 253 256 Molemi Sele Management (Pty) Ltd 5.1.5 5.1.6 7 5 Silo Certs (Pty) Ltd 2 Total carrying amount 1 2 228 265 The share in (loss)/profit from the investments in joint ventures for the year is as follows: - 260 2017 R’m Statement of financial position of the Certisure group: 5 4 61 51 1 6 Trade payables (4) 2 (4) Provisions (2) (4) - Other current financial liabilities (7) (4) Equity 54 49 73 71 263 50% proportion of the group’s ownership: Carrying amount of the investment* GROUP Notes 2018 R’m 2017 R’m Certisure Group 5.1.1 6 8 Grainovation (Pty) Ltd 5.1.2 6 3 Grasland Onderne mings (Pty) Ltd (Group) 5.1.3 - (2) Hinterland SA (Pty) Ltd (Group) 5.1.4 (22) 10 Molemi Sele Management (Pty) Ltd 5.1.5 5.1.6 3 - * Silo Certs (Pty) Ltd - * Total (loss)/profit from joint ventures Other comprehensive income from joint venture Molemi Sele Management (Pty) Ltd (6) (1) 19 1 Total (loss)/profit and other comprehensive income from joint ventures (7) 20 *Includes a revaluation of R46 million recognised due to loss of control over a subsidiary (1 May 2012). The revenue and profit of the Certisure group are as follows: Revenue Operating expenses Finance income 60 62 (46) (44) 5 4 Profit before tax 19 22 Tax (6) (7) Profit after tax 13 15 Group’s share of profit for the year Dividends received 6 8 (4) (3) 14 9 Summarised cash flows of the Certisure group are as follows: Generated from operating activities (Used in)/generated from investing activities (13) 4 Used in financing activities (6) (8) Net (decreased)/increase in cash flows (5) 5 FINANCIAL REVIEW 1 * The share in these joint ventures' profit/(loss) is below R0,5 million. 29