Blue Label Telecoms Integrated Annual Report 2016

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NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS continued
For the year ended 31 May 2016
123
BLUE LABEL INTEGRATED ANNUAL REPORT 2016
3. Financial instruments and financial risks continued
3.2 Financial liabilities continued
3.2.2 Borrowings continued
Foreign currency sensitivity
Financial instruments by currency
ZAR
R’000
USD
R’000
NgN
R’000
GBP
R’000
GHS
R’000
EUR
R’000
LSL
R’000
Total
R’000
2016
Financial assets
Cash and cash
equivalents 588 717 310 — — — — — 589 027
Trade and other
receivables* 2 525 960 318 — 15 959 — 3 223 — 2 545 460
Loans receivable 104 126 — — — — — — 104 126
Loans to associates
and joint ventures 8 945 273 251 — — — — — 282 196
3 227 748 273 879 — 15 959 — 3 223 — 3 520 809
Financial liabilities
Non-interest-bearing
borrowings 16 087 — — — — — — 16 087
Trade and other
payables* 2 646 837 214 — — 119 2 368 42 2 649 580
2 662 924 214 — — 119 2 368 42 2 665 667
Net financial position 564 824 273 665 — 15 959 (119) 855 (42) 855 142
2015
Financial assets
Cash and cash
equivalents 787 365 1 045 1 — — — — 788 411
Trade and other
receivables* 2 723 842 97 — 18 071 — — — 2 742 010
Loans receivable 74 302 — — — — — — 74 302
Loans to associates and
joint ventures 7 900 193 186 — — — — — 201 086
3 593 409 194 328 1 18 071 — — — 3 805 809
Financial liabilities
Non-interest-bearing
borrowings 16 087 — — — — — — 16 087
Trade and other
payables* 3 013 412 171 638 — — — — 3 014 221
3 029 499 171 638 — — — — 3 030 308
Net financial position 563 910 194 157 (637) 18 071 — — — 775 501
*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 have decreased
or increased by R27.4 million. In the prior year, with a 10% strengthening or weakening in the rand against the
US dollar, profit before tax would have decreased or increased by R19.4 million. The effects of movements in other
currencies are insignificant.
Capital risk
The Group’s objectives when managing capital are to safeguard the Group’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.
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 Group defines capital
as capital and reserves and non-current borrowings. The Group is not subject to externally imposed capital
requirements.
There were no changes to the Group’s approach to capital management during the year.