Integrated Reports Senwesbel Consolidated Financial Statements 2018 - Page 25

4.2.5 Other financial liabilities GROUP 2018 R’m 2017 R’m AgriRewards 1 37 - Creditors guarantee 2 28 - Total other financial liabilities 65 - 1. AgriRewards is a deferred bonus scheme in terms of which Senwes will allocate a portion of its profits on an annual basis to customers to reward them for their loyalty during the year. The AgriRewards scheme was launched during August 2016. The scheme is not automatic and customers have to register to participate. For the 2018 financial year all grain deliveries, procurement and interest-bearing transactions at Senwes Credit qualified for the scheme. During April 2018 the board approved a reward of R50/ton (2017: R54/ton) for grain deliveries, R5/ton (2017: Rnil) for grain procurement and 0,75% of average interest-bearing transactions (2017: Nil%). The accumulated AgriRewards expense was reclassified from provisions to other financial liabilities. Refer to note 16.2 for the detail on the 2017 AgriRewards provision. 2. During the year a guarantee was issued to the creditors of Prodist (Pty) Ltd. Senwes will be liable for 50% of the creditors, limited to R35 million, should Prodist default on its payment to the creditors. The risk of default was evaluated and a provision of R27,8 million was accounted for. Please see note 4.1.2 for more details. 5. GROUP INVESTMENT IN JOINT VENTURES AND ASSOCIATE 5.1 JOINT VENTURES GROUP NOTES 2018 R’m 2017 R’m Certisure group 5.1.1 73 71 Grainovation (Pty) Ltd 5.1.2 19 14 Grasland Ondernemings (Pty) Ltd (group) 5.1.3 18 14 Hinterland SA (Pty) Ltd (group) 5.1.4 146 123 Molemi Sele Management (Pty) Ltd 5.1.5 7 5 Silo Certs (Pty) Ltd 5.1.6 2 1 265 228 Total carrying amount The (loss)/profit share from the investment in joint ventures for the year is as follows: GROUP NOTES 2018 R’m 2017 R’m Certisure group 5.1.1 6 8 Grainovation (Pty) Ltd 5.1.2 6 3 Grasland Ondernemings (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 3 -* Silo Certs (Pty) Ltd 5.1.6 1 -* (6) 19 - 1 (6) 20 Total (loss)/profit from joint ventures Other comprehensive income from joint venture - Molemi Sele Management Total (loss)/profit and other comprehensive income from joint ventures * The share in these joint ventures’ profit/(loss) are below R0,5 million. Senwesbel Limited Reg no: 1996/017629/06 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2018 24