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22
FINANCIAL INSTRUMENTS (continued)
22.1 Market risk (continued)
GROUP
2011 2010
The following signifi cant exchange rates applied during the year:
R
R
Average rate of forward exchange contracts
Euro - 9.9392
CHF 7.4239 -
Year-end spot rate
Euro 9.6418 9.9426
USD 6.8387 7.3926
GBP 10.9642 11.1420
Sensitivity analysis
A 10% strengthening of the rand against the following currencies at 31 March would have decreased profi t or loss by
the amounts shown below. This analysis assumes that all other variables remain constant. The analysis is performed on
the same basis for 2010.
R’000 R’000
Euro (1 794) (1 042)
USD (7 397) (6 295)
GBP (184) (5)
Other 70 (120)
A 10% weakening of the rand against the above currencies at 31 March would have had the equal but opposite effect
on the above currencies to the amounts shown above, on the basis that all other variables remain constant.
Interest rate risk
Interest rate exposure and investment strategies are evaluated by management on a regular basis. Interest-bearing
investments are held with several reputable banks in order to minimise exposure.
At the reporting date the interest rate profi le of the Group’s interest-bearing fi nancial instruments was as follows:
Fixed rate instruments: Carrying amount R’000 R’000
Financial assets: Fixed deposits 567 795 518 115
The Group does not account for any fi xed rate fi nancial assets and liabilities at fair value through profi t or loss, and the
Group does not designate derivatives (interest rate swaps) as hedging instruments under a fair value hedge accounting
model. Therefore, a change in interest rates at the reporting date would not affect profi t or loss.
155 ANNUAL FINANCIAL STATEMENTS