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NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2014
164
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
2014
R’000
2013
R’000
7.
LOANS RECEIVABLE
Interest-free loans
25 710
21 285
Interest-bearing loans receivable
20 641
16 146
46 351
37 431
Less:
Amounts included in current portion of loans receivable
(27 850)
(36 431)
18 501
1 000
Interest-free loans are unsecured and have no fixed terms of repayment.
Interest-bearing loans bear interest at a range of between prime and
prime + 2% and are unsecured. Loans amounting to R26.1 million have
no fixed repayment terms; the remaining balance is repayable between
one and five years.
The loans receivable are neither past due nor impaired with a low risk of
default. Of this amount, R24 million (2013: R20 million) relates to loans
receivable from related parties, which are interest-free (refer to note 28).
8.
STARTER PACK ASSETS
Balance at the beginning of the year
3 688
7 692
Additions
1 513
8 388
Impairments*
(1 520)
(4 007)
Disposals*
(364)
(8 385)
At the end of the year
3 317
3 688
Less:
Amounts included in current portion of starter pack assets
(1 010)
(1 115)
2 307
2 573
* These impairments and disposals are charged to the statement of comprehensive income and are included in changes in
inventories of finished goods. The impairments represent the value of starter packs that management considers the
probability of activation to be low. The disposals represent starter packs that have activated during the year.