Integrated Reports Senwes Financial Review 2018 - Page 36

36 FINANCIAL REVIEW 9. The impairment provision is R94 million (2017: R97 million) , the details of which are as follows: GROUP Specific impairment Balance at the beginning of the year Increase in provision during the year Utilised during the year Portfolio impairment Balance at the beginning of the year Decrease in provision during the year Total provision for impairment 8.6 COMPANY 2018 R’m 2017 R’m 2018 R’m 2017 R’m (20) (18) (19) (17) (2) (9) (2) (9) (74) (79) (74) (79) (18) (11) - 2 (79) (90) 5 11 (94) (97) (17) (10) - 2 (79) (90) 5 11 (93) (96) GROUP Production accounts Current accounts Current portion of loans and other receivables Grain debtors Sundry receivables Less: provision for impairment Total trade and other receivables 8.6.1 8.6.2 8.6.3 Current R’m Debt in arrears R’m Total R’m Current R’m Debt in arrears R’m Total R’m 2 255 55 2 310 287 16 2 071 57 2 128 1 988 322 1 828 243 33 24 1 861 267 303 249 25 274 - 190 136 - 136 98 18 116 (41) (53) (94) (71) (26) (97) 2 807 21 2 828 2 483 74 2 557 190 116 3 119 Current receivables are accounts within current credit terms. Debt in arrears are accounts outside current credit terms. The provision relating to debt in arrears is a specific provision based on debtors handed over to the legal department. 8.7 As security for Senwes’ short-term facilities with Absa Bank (including the facility towards Tradevan- tage), all rights and interests in producer debtors and their underlying securities have been ceded and pledged to Absa Bank. The value of security ceded amounts to R2,1 billion (2017: R2,0 billion) as at year-end. 8.8 The carrying value read with the portfolio provision approximates the fair value of trade and other receivables. FINANCIAL REVIEW 2018 R’m 2017 R’m 2018 R’m 2017 R’m 144 75 161 82 Inventory held to satisfy firm sales represents inventory purchased to satisfy firm sales to the off-taker in respect of agricultural produce, which are payable by third parties on delivery of such agricultural produce to them. The price of such inventory is hedged on the South African Futures Exchange (Safex). Variations are also set off against these items. Inventory is measured at fair value, which is the SAFEX price. 10. DISCONTINUED OPERATIONS 10.2 Discontinued operations: 2017 2017 30 25 Inventory held to satisfy firm sales COMPANY There were no discontinued operations during the year. 2018 1 958 297 GROUP 10.1 Discontinued operations: 2018 Trade and other receivables can be summarised as follows: Trade receivables INVENTORY HELD TO SATISFY FIRM SALES 10.2.1 AFRICA ACTIVITIES Senwes and Bunge were equal shareholders in Bunge Senwes International (“BSI”). BSI is the hol­ ding company of entities in Malawi, Mozambique and Kenya. The deregistration of BSI was started during the 2018 financial year. The deregistration 5ݤ݅́ѕѡ܁)啅ȁݡѡɕɅѥ5酵Քi-儁݅́ѕɥظQ)ɅͅѥЁѡѥ͍ѥՕɅѥ