206 / 248
NOTES TO THE COMPANY ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2015
204
BLUE LABEL INTEGRATED ANNUAL REPORT 2015
2.
FINANCIAL RISKS continued
Foreign currency risk
Financial instruments by currency
2015
2014
ZAR
R’000
USD
R’000
Total
R’000
ZAR
R’000
USD
R’000
Total
R’000
Financial assets
Cash
2 283
—
2 283
1 418
— 1 418
Trade and other
receivables*
3 592
—
3 592
177
— 177
Loans to subsidiaries and
associates
976
976
31 565 1 054 32 619
Loans receivable
— 80 672
80 672
— 63 035 63 035
6 851
80 672
87 523
33 160 64 089 97 249
Financial liabilities
Non-interest-bearing
borrowings
754 891
— 754 891
474 949
— 474 949
Trade and other payables*
117 456
— 117 456
14 069
— 14 069
872 347
— 872 347
489 018
— 489 018
Net financial position
(865 496) 80 672 (784 824)
(455 858)
64 089 (391 769)
* Trade and other receivables and trade and other payables exclude non-financial instruments.
With a 10% strengthening or weakening in the rand against the US dollar, profit before tax would
increase or decrease by R8.1 million respectively.
Capital risk
The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as
a going concern in order to provide returns for shareholders and benefits for other stakeholders and to
maintain an optimal capital structure to reduce the cost of capital. Although the Company is in a deficit
position, the value of its significant subsidiary exceeds the carrying value.
In order to maintain or adjust this capital structure, the Company may issue new shares, adjust the
amount of dividends paid to shareholders, return capital to shareholders or sell assets to reduce debt.
The Company defines capital as capital and reserves and non-current borrowings.
The Company is not subject to externally imposed capital requirements. There were no changes to the
Company’s approach to capital management during the year.
Fair value measurement
For all short-term financial assets and liabilities, the carrying amount is regarded as an approximation of
the fair value.