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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
141
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2014
3.
FINANCIAL RISKS (continued)
The Group considers its maximum exposure per class, without taking into account any collateral and financial
guarantees, to be as follows:
2014
R’000
2013
R’000
Loans receivable
Group 1
—
10 971
Group 2
44 973
26 460
Group 3
1 378
—
46 351
37 431
Loans to associates and joint ventures
Group 1
—
—
Group 2
153 800
127 441
Group 3
—
—
153 800
127 441
Trade receivables
Group 1
14 783
15 670
Group 2
2 117 891
1 407 614
Group 3
18 113
14 974
Total unimpaired trade receivables
2 150 787
1 438 258
Refer to note 9 for a breakdown of the provision raised for trade receivables.
The effect of discounting of the trade receivables is not taken into account in the table above.
The Group has subordinated a portion of its loan to a joint venture in favour of other creditors, to the value
of R25 million.
The rating groups for counterparties are categorised as follows:
Group 1 – New customers/related parties (less than six months).
Group 2 – Existing customers/related parties (more than six months) with no defaults in the past.
Group 3 – Existing customers/related parties (more than six months) with some defaults in the past.
All defaults were fully recovered or are in the process of being recovered.