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NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2015
119
BLUE LABEL INTEGRATED ANNUAL REPORT 2015
2.
CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS continued
(j)
Classification of significant joint arrangements
Joint arrangements are all arrangements where two or more parties contractually agree to share
control of the arrangement, which only exists when decisions about the relevant activities require
unanimous consent of the parties sharing control. Joint ventures are joint arrangements whereby the
parties that have joint control of the arrangement have rights to the net assets of the arrangement.
The Group exercises judgement in determining the classification of its joint arrangements.
Blue Label Mexico S.A. de C.V.
The Group holds an effective interest of 46.64% in the issued ordinary share capital of Blue Label
Mexico S.A. de C.V. The joint arrangement provides the Group and the other parties to the agreement
with rights to the net assets of the entity. The investment is classified as a joint venture as unanimous
approval of the shareholders is required for decisions.
2DFine Holdings Mauritius
The Group holds an effective interest of 50% in the issued ordinary share capital of 2DFine Holdings
Mauritius. The joint arrangement provides the Group and the other parties to the agreement with
rights to the net assets of the entity. The investment is classified as a joint venture as unanimous
approval of the shareholders is required for decisions.
Supa Pesa Africa (Mauritius) Limited
The Group holds an effective interest of 50% in the issued ordinary share capital of Supa Pesa
(Mauritius) Limited. The joint arrangement provides the Group and the other parties to the agreement
with rights to the net assets of the entity. The investment is classified as a joint venture as unanimous
approval of the shareholders is required for decisions.
(k)
Classification of significant associates
Associates are all entities over which the Group has significant influence but not control, generally
accompanying a shareholding of between 20% and 50% of the voting rights.
Oxigen Services India Private Limited (Oxigen Services India)
Blue Label Telecoms acting through its wholly owned subsidiary, Gold Label Investments, acquired a
50% interest in 2DFine Holdings Mauritius. The investment is classified as a joint venture as
unanimous approval of the shareholders is required for decisions. 2DFine Holdings Mauritius holds
37.22% of Oxigen Services India. In terms of IFRS, an entity does not aggregate its interests held
through associates and joint ventures when assessing for control as BLT through this relationship
cannot direct the financial and operating policies of Oxigen Services India. Therefore, even though BLT
has an effective interest of 55.83% in Oxigen Services India, the Group neither controls nor jointly
controls Oxigen Services India.
The Group has the right to appoint two directors out of a total of five. Therefore we have concluded
that the Group has significant influence over the financial and operating policies of Oxigen Services
India.
(l)
Assessment of probabilities on contingent purchase arrangements
Management has assessed the probabilities on the contingent purchase arrangements. Refer to note 6
and note 26 for details.