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BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
2.
Financial risks
continued
Foreign currency sensitivity
Financial instruments by currency
2017
2016
ZAR
R’000
USD
R’000
Total
R’000
ZAR
R’000
USD
R’000
Total
R’000
Financial assets
Cash
1 002
— 1 002
1 303
— 1 303
Trade and other receivables*
2 972
— 2 972
6 203
— 6 203
Loans to subsidiaries
976
— 976
976
— 976
Loans receivable
— 106 305
106 305
— 115 678 115 678
4 950
106 305
111 255
8 482 115 678 124 160
Financial liabilities
Loans from subsidiaries
1 491 625
— 1 491 625
1 183 399
— 1 183 399
Trade and other payables*
52 370
393
52 763
82 609
— 82 609
1 543 995
393 1 544 388
1 266 008
— 1 266 008
Net financial position
(1 539 045)
105 912 (1 433 133)
(1 257 526)
115 678 (1 141 848)
* 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 R10.6 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
subsidiaries 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 borrowing.
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 financial assets and liabilities, the carrying amount is regarded as an approximation of the fair value.
Notes
to the Company annual financial statements
continued
For the year ended 31 May 2017