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
BLUE LABEL INTEGRATED ANNUAL REPORT 2016
98
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
2016
R’000
2015
R’000
2016
R’000
2015
R’000
2016
R’000
2015
R’000
Cost and share of reserves
at the beginning of the
year 61 543 58 317 267 568 318 508 (23 806) (13 483)
Acquisition of associates and
joint ventures 167 762 — 42 654 50 033 — —
Share of (losses)/profits from
associates and joint ventures 2 307 2 621 (63 293) (88 508) (10 245) (7 574)
Share of results after tax (27 106) 4 095 (61 219) (86 389) (10 245) (7 574)
Amortisation of intangible
assets (786) (2 047) (2 881) (2 943) — —
Deferred tax on intangible
assets amortisation 220 573 807 824 — —
Dilution of associate2 29 979 — — — — —
Foreign currency translation
reserve 71 150 1 445 7 926 (12 465) (8 235) (2 749)
Equity compensation benefit 750 548 — — — —
Dividends received — (1 388) — — — —
Disposal of associate/joint
venture included in other
income — — — — — —
Cost and share of reserves
at the end of the year 303 512 61 543 254 855 267 568 (42 286) (23 806)
Loans at the beginning of
the year 29 552 25 069 — 1 054 163 634 127 372
Loans granted to associates
and joint ventures — — — 48 979 20 454 15 027
Loans repaid by associates
and joint ventures — — — — — —
Loan granted to joint venture
capitalised — — — (50 033) — —
Unrealised foreign exchange
profit on loans to associates
and joint ventures 8 807 4 483 — — 50 804 21 235
Loans at the end of the
year 38 359 29 552 — — 234 892 163 634
Closing net book value 341 871 91 095 254 855 267 568 192 606 139 828
12DFine 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%). Refer to page 33.
3This represents an equity loan granted to Lornanox Proprietary Limited. These loans are repayable from surplus reserves at the
discretion of the board.