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BUSINESS MODEL
AND STRATEGIC
OBJECTIVES
LEADERSHIP
GOVERNANCE
OPERATING
PERFORMANCE
SHAREHOLDERS’
INFORMATION AND
ADMINISTRATION
FINANCIAL
PERFORMANCE
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
139
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2014
2.
CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS (continued)
(j)
Classification of significant joint arrangements
Joint arrangements are all arrangements where two or more parties contractually agree to share control of
the arrangement, which only exists when decisions about the relevant activities require unanimous consent
of the parties sharing control. Joint ventures are joint arrangements whereby the parties that have joint
control of the arrangement have rights to the net assets of the arrangement.
The Group exercises judgement in determining the classification of its joint arrangements.
Blue Label Mexico S.A. de C.V.
The Group holds an effective interest of 45.57% in the issued ordinary share capital of Blue Label Mexico
S.A. de C.V. The joint arrangement provides the Group and the other parties to the agreement with rights to
the net assets of the entity. The investment is classified as a joint venture as unanimous approval of the
shareholders is required for decisions.
2DFine Holdings Mauritius
The Group holds an effective interest of 50% in the issued ordinary share capital of 2DFine Holdings
Mauritius. The joint arrangement provides the Group and the other parties to the agreement with rights to
the net assets of the entity. The investment is classified as a joint venture as unanimous approval of the
shareholders is required for decisions.
(k) Classification of significant associates
Associates are all entities over which the Group has significant influence but not control, generally
accompanying a shareholding of between 20% and 50% of the voting rights.
Smart Voucher Limited trading as Ukash
The Group has an effective interest of 17.25%. Significant influence is demonstrated as a result of
representation on the board of directors.
Oxigen Services India Private Limited (‘Oxigen Services India’)
Blue Label Telecoms acting through its wholly owned subsidiary, Gold Label Investments, acquired a 50%
interest in 2DFine Holdings Mauritius. The investment is classified as a joint venture as unanimous approval of
the shareholders is required for decisions. 2DFine Holdings Mauritius holds 37.22% of Oxigen Services India.
In terms of IFRS, an entity does not aggregate its interests held through associates and joint ventures when
assessing for control as BLT through this relationship cannot direct the financial and operating policies of
Oxigen Services India. Therefore, even though BLT has an effective interest of 55.83% in Oxigen Services
India, the Group neither controls nor jointly controls Oxigen Services India.