Blue Label Telecoms Integrated Annual Report 2019

Blue Label annual financial statements 2019 5 Banking facility In August 2019, The Prepaid Company concluded an addendum to its facilities agreement with Investec Bank Limited in terms of which the facility was increased by R150 million. Going concern The Board of Directors have evaluated the going concern assumption as at 31 May 2019 and considered it to be appropriate in the preparation of these financial statements. The Prepaid Company’s Investec banking facilities, which would have expired on 30 September 2019, have been extended to 29 November 2019 and discussions are in progress for a further extension beyond that date. As at the date of these financial statements, the renegotiation of these facilities had not yet been completed, and although the directors are of the opinion that the facilities would be extended beyond November 2019, material uncertainty exists should these facilities not be extended. In this event, certain liabilities within the Group would not be settled in the normal course of business. The directors are confident that the successful completion of the transactions, as detailed in the subsequent events above, will result in a significant reduction in interest-bearing debt and in turn the strengthening of the Group’s balance sheet. Directorate The following are the details of the Company’s Directors: Name Office Appointment date Date and nature of change Larry M Nestadt Independent Non-Executive Director 5 October 2007 — Brett M Levy Joint Chief Executive Officer 1 February 2007 — Mark S Levy Joint Chief Executive Officer 1 February 2007 — Kevin M Ellerine Non-Executive Director 8 December 2009 — Gary D Harlow Independent Non-Executive Director 5 October 2007 — Phuti Mahanyele Independent Non-Executive Director 1 September 2016 Resigned 23 November 2018 Joe S Mthimunye Independent Non-Executive Director 5 October 2007 — Dean A Suntup Financial Director 14 November 2013 — Jeremiah S Vilakazi Independent Non-Executive Director 19 October 2011 — Directors’ interests The individual interests declared by Directors in the Company’s share capital as at 31 May 2019, held directly or indirectly, were as follows: Nature of interest Direct beneficial Indirect beneficial Director/officer 2019 2018 2019 2018 BM Levy 67 174 937 63 438 386 17 772 778 21 272 778 MS Levy 59 767 529 56 030 978 17 772 777 21 272 777 KM Ellerine* — — 114 660 000 114 660 000 GD Harlow — — 4 445 569 4 414 815 JS Mthimunye 130 000 50 000 242 573 20 000 LM Nestadt — — 10 000 000 8 204 674 DA Suntup 3 826 078 808 612 177 778 3 877 778 JS Vilakazi — — — — * KM Ellerine is a beneficiary of these shares together with multiple other beneficiaries.