164 / 198
For the year ended 31 May 2016
BLUE LABEL INTEGRATED ANNUAL REPORT 2016
162
2.
Financial risks
continued
Foreign currency sensitivity
Financial instruments by currency
2016
2015
ZAR
R’000
USD
R’000
Total
R’000
ZAR
R’000
USD
R’000
Total
R’000
Financial assets
Cash
1 303
— 1 303
2 283
— 2 283
Trade and other receivables*
6 203
— 6 203
3 592
— 3 592
Loans to subsidiaries
161 536**
— 161 536
976
— 976
Loans receivable
— 115 678
115 678
— 80 672 80 672
169 042 115 678
284 720
6 851 80 672 87 523
Financial liabilities
Loans from subsidiaries
1 183 399
— 1 183 399
754 891
— 754 891
Trade and other payables*
82 609
— 82 609
117 456
— 117 456
1 266 008
— 1 266 008
872 347
— 872 347
Net financial position
(1 096 966)
115 678 (981 288)
(865 496)
80 672 (784 824)
* Trade and other receivables and trade and other payables exclude non-financial instruments.
** A portion of this loan in substance forms part of the Company’s investment into Gold Label Investments Proprietary Limited.
With a 10% strengthening or weakening in the rand against the US dollar, profit before tax would decrease or
increase by R11.6 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
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.
NOTES TO THE COMPANY ANNUAL FINANCIAL STATEMENTS
continued