Integrated Reports Senwesbel Consolidated Financial Statements 2018 - Page 18

2. PROPERTY, PLANT AND EQUIPMENT GROUP Cost price 2018 R’m 2017 R’m 1 849 1 727 Land 33 35 Silos 845 838 Buildings and improvements 238 204 Plant and equipment 636 567 97 83 (558) (525) Land - - Silos (72) (69) Vehicles Accumulated depreciation and impairments (65) (57) (357) (341) (64) (58) 1 291 1 202 Buildings and improvements Plant and equipment Vehicles Total carrying value • Registers of land and buildings are available for inspection at the registered offices of the relevant companies. • Certain assets are encumbered as set out in note 4.2.3. • The capital commitments of the group are set out in note 18.2. 2018 - RECONCILIATION OF THE MOVEMENTS ON PROPERTY, PLANT AND EQUIPMENT BALANCE AT THE BEGINNING OF THE YEAR R’m PURCHASES R’m TRANSFERS WITHIN ASSET CLASSES R’m DISPOSALS R’m BALANCE AT THE END OF THE YEAR R’m DEPRECIATION R’m GROUP – 2018 Land 35 3 - (5) - 33 Silos 769 4 - - (7) 766 Buildings and improvements 147 31 (3) 6 (3) 178 Plant and equipment* 226 86 - (1) (31) 280 Vehicles Total 25 17 - - (8) 34 1 202 141 (3) - (49) 1 291 *Included in the carrying value of plant and equipment is goodwill to the value of R6 million, which originated from the Agrico-transaction. Refer to note 3.1. The goodwill was tested for impairment at year-end and no impairment was recognised. 2017 - RECONCILIATION OF THE MOVEMENTS ON PROPERTY, PLANT AND EQUIPMENT BALANCE AT THE BEGINNING OF THE YEAR R’m PURCHASES R’m DISPOSALS R’m TRANSFERS WITHIN ASSET CLASSES R’m DEPRECIATION R’m BALANCE AT THE END OF THE YEAR R’m - 35 GROUP – 2017 Land 17 Silos* Buildings and improvements Plant and equipment** Vehicles Total 18 - - 774 4 (6) (3) - 769 138 14 - - (5) 147 180 70 - 3 (27) 226 25 10 (1) - (9) 25 1 134 116 (7) - (41) 1 202 *Included with this balance is an impairment provision of R5,7 million. Due to the five-year average result and the ROA being lower than the WACC rate, impairment was provided for the total net asset value at a specific silo which is attributable to the market access segment. The impairment is included with distribution, sales and administrative expenses on the statement of comprehensive income. The recoverable amount of the silo was the value used. **Included in purchases is goodwill to the value of R6 million, which originated from the Agrico-transaction. Refer to note 3.2. 17 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2018 Senwesbel Limited Reg no: 1996/017629/06