Integrated Reports Senwes Financial Review 2018 - Page 51

FINANCIAL REVIEW 23.2 Joint ventures 23.3 Parent company Senwesbel Ltd’s shareholding in Senwes decreased to 52,6% (2017: 52,9%) during the 2018 financial year. Details of transactions are listed in the table below. Transactions with related parties include: Silo Certs (Pty) Ltd Costs relating to silo certificates Certisure group Interest received/(paid) and service level agreement income Grainovation (Pty) Ltd Transport costs, interest paid and service level agreement income Grasland Ondernemings (Pty) Ltd (group) Service level agreement income and interest received Hinterland SA (Pty) Ltd Service level agreement income, stationery income, rent paid, mecha- nisation service level agreement expense and interest paid or received Senwesbel Ltd Molemi Sele Management (Pty) Ltd Service level agreement income and interest paid Prodist (Pty) Ltd Purchase of whole goods spares and service level agreement income Dividends paid to Senwesbel Ltd amounted to R50 million (2017: R38 million). PARENT COMPANY 2018 R’m GROUP 2018 2018 R’m 2017 % interest 2017 R’m Transactions with related parties 2018 R’m 2017 R’m Amounts owed (to)/by entities Joint Ventures Certisure group 50,0% 50,0% 1 1 (23) (18) Grainovation (Pty) Ltd 50,0% 50,0% (149) 50,0% 1 2 (3) (25) 50,0% (336) 6 10 Hinterland SA (Pty) Ltd 50,0% 50,0% 61 48 132 8 Molemi Sele Management (Pty) Ltd 35,7% 35,7% - - (3) - Silo Certs (Pty) Ltd 50,0% 50,0% - - 2 2 Prodist (Pty) Ltd * 37,5% 37,5% 3 4 30 30 Grasland Ondernemings (Pty) Ltd (group) 51 * Indirect interest through Hinterland joint venture. For the interest rates and loan repayment terms, refer to note 4. 2017 R’m Management fees received 1 1 2018 R’m 2017 R’m Interest paid - - 2018 R’m 2017 R’m Loan payable - - For interest rates and loan repayment terms, refer to note 4. 23.4 Trade with directors Balances with directors These comprise of production credit and other accounts for which customers of the company qualify. Credit extension terms and interest rates in respect of loans are aligned with the company’s credit policy. These amounts are included in trade and other receivables according to normal credit terms and conditions. GROUP Related parties – trade and other accounts receivable COMPANY 2018 R’m 2017 R’m 2018 R’m 2017 R’m 77 69 48 14 Transactions with directors Due to the nature of the business the directors form part of the normal customer/ client base of the groep. GROUP 2018 R’m 2017 R’m COMPANY 2018 R’m 2017 R’m Revenue 207 369 91 70 Purchases (77) (47) (76) (42) Net transactions with directors 130 322 15 28 FINANCIAL REVIEW The transactions with directors comrprise of revenue from the sale of mechani- sation wholegoods and spares, handling, storage, sales and purchases of grain, interest and financing transactions.