108 / 166
19.
INVESTMENT IN JOINTLY CONTROLLED ENTITY
Effective April 1 2017, Bidcorp Food Africa Proprietary Limited, a subsidiary of Bid Corporation Limited, signed agreements with Puratos
Group NV (Puratos) whereby Puratos became an equal shareholder in Bidcorp Food’s Bakery Solutions Division (BBS, subsequently
renamed Chipkins Puratos (CP)). CP manufactures and supplies bakery ingredients to industrial bakers, the craft market and large retailers
under the Chipkins and NCP brands in South Africa. The interest in the venture is accounted for using the equity method of accounting.
The joint venture was initially recorded at fair value and is increased or decreased by Bidcorp’s share of the profit or loss of CP after
April 1 2017.
2017
R’000
2016
R’000
Balance at beginning of year
–
–
Recognition of CP jointly controlled entity at fair value
387 523
–
Share of net profit from jointly controlled entity
6 516
–
Balance at end of year
394 039
–
The CP jointly controlled entity net revenue represents 0,9%, trading profit 1,3% and total assets
0,9% of the Bidcorp group. Thus, no summarised financial information has been supplied in these
financial statements.
20.
INVENTORIES
Raw materials
418 009
329 997
Work-in-progress
8 853
12 871
Finished goods
7 797 489
8 486 071
Roll cages
37 314
–
8 261 665
8 828 939
Write down of inventory to net realisable value charged to the statement of profit or loss
28 026
22 501
Provision for stock obsolescence included in the inventories balance
196 761
188 349
21.
TRADE AND OTHER RECEIVABLES
Trade receivables
13 161 625
14 493 337
Impairment allowances
(531 077)
(548 531)
Net trade receivables
12 630 548
13 944 806
Forward exchange contracts asset
1 878
3 447
Prepayments and other receivables
1 180 267
1 265 912
13 812 693
15 214 165
The majority of trade and other receivables is fixed in the subsidiaries’ local currency. As trade and other receivables have limited exposure
to exchange rate fluctuations, a currency analysis has not been included.
Refer to note 33 for further disclosure on trade receivables, impairment allowances and forward exchange contracts.
FINANCIAL OVERVIEW
Notes to the consolidated financial statements
for the year ended June 30
FINANCIAL STAT MENTS
Annual integrated report 2017
Bid Corporation Limited
104