Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 106
1
2
3
4
SASOL LIMITED GROUP
WORKING CAPITAL
for the year ended 30 June
2021
Rm
2020
Rm
4 269
1 834
5 585
2 560
15 315
179
3 513
1 868
6 376
2 108
13 681
255
29 742
27 801
25 Inventories
Carrying value
Crude oil and other raw materials
Process material
Maintenance materials
Work in progress
Manufactured products
Consignment inventory
The impact of lower sales prices resulted in a net realisable value write-down of R83 million in 2021 (2020 – R384 million).
Inventory of R1 118 million (2020 – R3 294 million) is held at net realisable value.
Accounting policies:
Inventories are stated at the lower of cost and net realisable value. Cost includes expenditure incurred in acquiring, manufacturing
and transporting the inventory to its present location. Manufacturing costs include an allocated portion of production overheads
which are directly attributable to the cost of manufacturing such inventory. The allocation is determined based on the greater
of normal production capacity and actual production. The costs attributable to any inefficiencies in the production process are
charged to the income statement as incurred.
By-products are incidental to the manufacturing processes, are usually produced as a consequence of the main product stream,
and are immaterial to the group. Revenue from sale of by-products is offset against the cost of the main products.
Cost is determined as follows:
Crude oil and other raw materials
First-in-first-out valuation method (FIFO)
Process, maintenance and other materials
Weighted average purchase price
Work-in-progress
Manufacturing costs incurred
Manufactured products including consignment inventory
Manufacturing costs according to FIFO
2021
Rm
for the year ended 30 June
26 Trade and other receivables
2020
Rm
Trade receivables
Other receivables
Related party receivables – equity accounted investments
Impairment of trade and other receivables
23 692
3 786
255
(515)
Trade and other receivables
Duties recoverable from customers
Prepaid expenses and other
Value added tax
27 218
263
1 860
1 592
22 066
366
1 605
1 060
30 933
25 097
18 247
4 310
215
(706)
Impairment of trade receivables
Trade receivables are considered for impairment under the expected credit loss model. Trade receivables are written off when there is
no reasonable prospect that the customer will pay. Refer to note 40 for detail on the impairments recognised.
No individual customer represents more than 10% of the group’s trade receivables.
Collateral
The group holds no collateral over the trade receivables which can be sold or pledged to a third party.
104
Sasol Annual Financial Statements 2021