Integrated Reports Senwesbel Consolidated Financial Statements 2018 - Page 19

3. INVESTMENT IN COMPANIES AND STRUCTURED ENTITIES 3.1 INVESTMENT IN SUBSIDIARY The company’s investment in Senwes Limited is accounted for at fair value. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an ordinary transaction between market participants at the measurement date. The fair value of the investment is the market value as traded in the considered market. The market value amounted to R11,00 (2017: R10,40) per share as at 30 April 2018. COMPANY % INTEREST Senwes Limited TOTAL SHARES TOTAL NET INVESTMENT COST PRICE 2018 2017 2018 2017 2018 R’m 2017 R’m 2018 R’m 2017 R’m 52,56 52,91 95 022 632 95 654 583 548 549 1 045 996 The directors’ valuation is based on the market price of the Senwes share. The difference between the directors’ valuation (fair value) and the cost price is accounted for as a fair value adjustment of the investment and accounted for in the statement of other comprehensive income in the company. The following is the summarised financial information: GROUP 2018 R’m 2017 R’m Non-current assets 1 976 1 777 Current assets excluding bank and cash 4 154 3 470 (3) 14 Financial position Cash and cash equivalents (677) (459) Current liabilities excluding trade payables (2 220) (1 811) Non-current liabilities (1 051) (1 002) 2 179 1 989 Trade payables Equity Financial results 9 540 9 927 (8 106) (8 833) Distribution, sales, administration expenses and gains (774) (680) Finance costs (223) (204) (5) 19 Revenue Cost of sales Share of loss/(profit) from joint ventures Profit before tax 432 229 (121) (62) 311 167 310 166 1 1 Other comprehensive income to be reclassified to profit or loss in subsequent periods, net of tax (1) 1 Share of other comprehensive income of joint venture (1) 1 Total comprehensive income for the year, net of tax 310 168 Taxation Profit after tax Profit attributable to: Equity holders of the parent Non-controlling interest Summarised cash flows are as follows: 286 165 Used in investing activities (256) (186) Used in financing activities (47) - Net (decrease)/increase in cash flows (17) (21) Generated from operating activities Senwesbel Limited Reg no: 1996/017629/06 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2018 18