Blue Label Telecoms Integrated Annual Report 2017

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BLUE LABEL INTEGRATED ANNUAL REPORT 2017
2. Group composition continued
2.1 Investments in and loans to associates and joint ventures
Associate Joint venture Joint venture
Company Oxigen Services India
Private Limited
Blue Label Mexico S.A.
de C.V.
2DFine Group1
Principal activity Airtime and payment
solution provider
Distributor of terminals to
vend e-tokens of value
Investment holding
company
Country of incorporation India Mexico Mauritius
2017*
R’000
2016
R’000
2017
R’000
2016
R’000
2017*
R’000
2016
R’000
Cost and share of reserves
at the beginning of the year 303 512 61 543 254 855 267 568 (42 286) (23 806)
Acquisition of associates and
joint ventures — 167 762 — 42 654 — —
Share of (losses)/profits from
associates and joint ventures (119 831) 2 307 (36 978) (63 293) (5 409) (10 245)
Share of results after tax (119 568) (27 106) (35 382) (61 219) (5 409) (10 245)
Amortisation of intangible
assets (365) (786) (2 217) (2 881) — —
Deferred tax on intangible
assets amortisation 102 220 621 807 — —
Dilution of associate2 — 29 979 — — — —
Foreign currency translation
reserve (35 085) 71 150 (44 208) 7 926 4 915 (8 235)
Equity compensation benefit — 750 — — — —
Dividends received — — — — — —
Reclassification to venture
capital associate (148 596) — — — 42 780 —
Disposal of associate/joint
venture included in other
income — — — — — —
Cost and share of reserves
at the end of the year — 303 512 173 669 254 855 — (42 286)
Loans to associates and
joint ventures
Loans at the beginning of
the year 38 359 29 552 — — 234 892 163 634
Reclassification to venture
capital associate (36 025) — — — (218 889) —
Loans granted to associates
and joint ventures 2 136 — — — 10 982 20 454
Loans repaid by associates and
joint ventures — — — — — —
Unrealised foreign exchange
profit on loans to associates
and joint ventures (4 470) 8 807 — — (26 985) 50 804
Loans at the end of the year — 38 359 — — — 234 892
Closing net book value — 341 871 173 669 254 855 — 192 606
1 2DFine Group consists of 2DFine Holdings Mauritius and 2DFine Investments Mauritius.
2This dilution relates to the 2DFine Group’s shareholding in Oxigen Services India Private Limited decreasing from 37.22% to 34.42%.
(The Group’s effective share decreased from 18.1% to 17.21%).
3R9.3 million (2016: R59.9 million) represents an equity loan granted to Lornanox Proprietary Limited. These loans are repayable from
surplus reserves at the discretion of the Board.
*On 1 June 2016 Oxigen Services India was demerged into two separate entities. Refer to note 2.2. The results of these entities have
been aggregated for purposes of reporting these associates while they were equity accounted for during the period 1 June 2016 to
November 2016.
Notes to the Group annual financial statements continued
For the year ended 31 May 2017