Integrated Reports Senwesbel Consolidated Financial Statements 2018 - Page 34

7. INVENTORY GROUP 2018 R’m 2017 R’m 723 525 19 3 7.3; 7.4 253 146 7.5 995 674 NOTES Merchandise 7.1; 7.2 Consumables Grain commodities Balance at the end of the year 7.1 Included in merchandise is floor plan inventory of R184 million (2017: R160 million), which serves as security in terms of an agreement with the relevant supplier of farming equipment. 7.2 The merchandise inventory of R723 million (2017: R525 million) includes adjustments to net realisable value and provision for obsolete stock to the value of R89 million (2017: R33 million). 7.3 Grain commodities represent grain purchased from producers. The price of such inventory is hedged on the South African Futures Exchange (Safex). Variance margins are also set off against these items. Consequently the carrying value is equal to HZ\[YH\[ًˍHܘZ[[[ܞH\Y[YY\X\]H܈[ܘ[YH[[Y\H[YHوM Z[[ۈ MΈ[ KBˍBH[[ܞH\[YY\΂BBBBBBԓTY\[\H[ۜ[XX\ŒŒ N&[H M”&[BLLSPUSӈQUZYY]\YHXBYX[\][ۈH  ͈\\HXBܘZ[[[]Y\ L M ۝XXH[\XY\]Z\[YB[[H]H[وHYX\NMH STБSSPSSSPSUSQS NHB[\ؙ[[Z]YYΈ NNM M͌K