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Notes to the financial statements

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15 Inventories

	2007 £m	2006 £m
Goods held for resale	590	576

The amount of inventories recognised as an expense and charged to cost of sales for the 52 weeks to 24 March 2007 was £12,801 million (2006: £11,875 million).

16 Receivables

(a) Trade and other receivables

	Group		Company
	2007 £m	2006 £m	2007 £m	2006 £m
Non-current
Amounts due from Group entities	—	—	869	1,751
Other receivables	50	—	50	—
	50	—	919	1,751
Current
Trade receivables	30	33	—	—
Amounts due from Group entities	—	—	374	148
Other receivables	65	54	1	2
	95	87	375	150
Prepayments and accrued income	102	189	—	—
	197	276	375	150

Trade receivables are non-interest bearing and are on commercial terms. Current other receivables are generally non-interest bearing. Concentrations of credit risk with respect to trade and current other receivables are limited due to the Group’s customer base being large and unrelated. Non-current other receivables of £50 million comprise £20 million of floating rate subordinated undated loan capital and £30 million of floating rate subordinated dated loan capital due from Sainsbury’s Bank (note 34).

In the prior financial year, Sainsbury’s Bank plc was a subsidiary of the Group and the loan capital receivable of £55 million was eliminated on consolidation in the Group financial statements and included as part of 'Amounts due from Group entities’ in the Company financial statements.

In the current financial year, as part of the transaction on 8 February 2007 (note 7), £5 million of the Company’s loan capital due from Sainsbury’s Bank (£2 million of undated loan capital and £3 million of dated loan capital) was repaid by HBOS plc at par value.

(b) Amounts due from Sainsbury’s Bank customers and other banks

	2007 £m	2006 £m
Non-current
Loans and advances to customers	—	1,487
Impairment of loans and advances	—	(14)
	—	1,473
Current
Loans and advances to customers	—	1,049
Loans to other banks	—	996
Impairment of loans and advances	—	(157)
	—	1,888

Loans and advances to customers and other banks accrue interest at commercial borrowing rates.

At 24 March 2007, Sainsbury’s Bank plc is equity accounted for as a joint venture (note 7) and hence, its assets and liabilities are no longer consolidated in the Group’s balance sheet.

17 Available-for-sale financial assets

	2007 £m	2006 £m
Non-current
Unlisted equity investments	1	1
Other financial asset	136	112
	137	113
Current
At fair value:
Treasury bills	—	47
Floating rate notes	—	5
	—	52

The other financial asset represents the Group’s beneficial interest in a property investment pool.

18 Non-current assets held for sale

Assets held for sale of £25 million (2006: £25 million) consist of properties held in the retail operations division. Sale of these assets is expected to occur in the next financial year beginning 25 March 2007.

19 Payables

(a) Trade and other payables

	Group		Company
	2007 £m	2006 £m	2007 £m	2006 £m
Current
Trade payables	1,706	1,419	—	—
Amounts due to Group entities	—	—	4,463	5,074
Other payables	365	418	11	45
Accruals and deferred income	196	257	—	—
	2,267	2,094	4,474	5,119
Non-current
Amounts due to Group entities	—	—	740	782
Accruals and deferred income	33	30	—	—
	33	30	740	782

The Group’s policy on payment of creditors is to agree terms of payment prior to commencing trade with a supplier and to abide by those terms on the timely submission of satisfactory invoices.

Deferred income relates to the accounting for leases with fixed rental increases and lease incentives on a straight-line basis over the term of the lease.

(b) Amounts due to Sainsbury’s Bank customers and other banks

	2007 £m	2006 £m
Current
Customer accounts	—	2,299
Non-current
Deposits by banks	—	1,009

Amounts due to Sainsbury’s Bank customers and other banks are generally repayable on demand and accrue interest at commercial borrowing rates.

At 24 March 2007, Sainsbury’s Bank plc is equity accounted for as a joint venture (note 7) and hence, its assets and liabilities are no longer consolidated in the Group’s balance sheet.