Integrated Reports Senwesbel Consolidated Financial Statements 2018 - Page 43

19. NOTES TO THE STATEMENT OF COMPREHENSIVE INCOME 19.1 DISTRIBUTION, SALES AND ADMINISTRATIVE EXPENSES AND DISCLOSABLE ITEMS GROUP NOTES 2018 R’m 2017 R’m 19.4; 23.4 (452) (374) Profit from operations is stated after the following: Employee costs (including directors' costs) Decrease in provision for bad debt 8.5 Bad debt written off Water and electricity Depreciation 2 3 4 (12) (3) (43) (47) (42) (41) Maintenance costs (45) (41) Operating lease expense (11) (10) Property (6) (6) Plant and equipment (5) (4) (1) (1) Profit on disposal of property, plant and equipment 1 1 Reversal/(impairment) of property, plant and equipment 1 (6) Foreign exchange loss Increase/(decrease) in provision for grain risk Impairment of investment Merchandise inventory provision part of cost of sales Cost of inventory recognised as an expense 16 (3) 14 5.1.4 (8) (11) (56) 12 (8 106) (8 833) 7.2 The investment in Hinterland group and direct loans to Prodist are assessed annually for impairment provisions. Impairment provisions on these investments and loans were only recognised at group level in the previous years and therefore impairment was done on company level of R45 million based on previous years’ impairments at group level, while a further R8 million was recognised, both on company and group, for increase in exposure since April 2017. The impairment provision was calculated based on the unrecoverable amount (Senwes’ exposure less recoverable amount of Prodist’s assets). 19.2 FINANCE COSTS GROUP Loans from commercial banks 2018 R’m 2017 R’m 2018 R’m 2017 R’m (189) (190) (2) (2) (22) (7) - - (1) - Commodity finance AgriRewards (13) (9) - - (225) (206) (2) (2) Other* Total finance costs paid COMPANY * Other interest mainly includes interest paid on loans payable to joint ventures. Senwesbel Limited Reg no: 1996/017629/06 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2018 42