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NOTES TO THE COMPANY ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2014
234
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
2.
FINANCIAL RISKS (continued)
Foreign currency risk
Financial instruments by currency
2014
2013
ZAR
USD Total
ZAR
Total
R’000
R’000
R’000
R’000
R’000
Financial assets
Cash
1 418
— 1 418
1 110
1 110
Trade and other receivables*
177
— 177
6 445
6 445
Loans to subsidiaries and associates
31 565
1 054 32 619
38 419 38 419
Loans receivable
—
63 035 63 035
2
2
33 160
64 089
97 249
45 976 45 976
Financial liabilities
Non-interest-bearing borrowings
474 949
— 474 949
150 858 150 858
Trade and other payables*
14 069
—
14 069
9 238
9 238
489 018
—
489 018
160 096 160 096
Net financial position
(455 858)
64 089
(391 769)
(114 120)
(114 120)
* Trade and other receivables and trade and other payables exclude non-financial instruments.
With a 10% strengthening or weakening in the rand against all other currencies, profit before tax would
increase or decrease by R6.4 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.
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.