omnia holdings annual report 2010 omnia holdings annu

29 FINANCIAL RISK MANAGEMENT continued
OMNIA ANNUAL REPORT 2010 109
2010
millions
2009
millions
Imports for the period ending 31 March
USD 1 281 2 934
Euro 31 175
Other 27 25
Exports for the period ending 31 March
USD 456 2 770
Euro 3 136
Other 3 –
Sensitivity analysis
At the reporting date, if the rand had strengthened by 10% (2009: 30%) with all other variables held constant, post-tax profit for
the year would have been R68 million (2009: R6 million) higher, mainly as a result of foreign exchange gains on translation of
foreign denominated borrowings and trade payables compensated by foreign exchange losses on translation of foreign
denominated cash and cash equivalents.
A 10% weakening of the rand at 31 March would have had the equal but opposite effect on the basis that all other variables
remain constant.
Exposure to interest rate risk
The Group has entered into forward rate and swap agreements that entitle the Group to receive interest at floating rates on
notional principal amounts and oblige the Group to pay interest at fixed rates on the same amounts. The interest rate swap
agreements allow the Group to raise long-term and short-term borrowings at floating rates and swap them into fixed rates that are
lower than those available if they borrowed at fixed rates directly. Under the interest rate swaps, the Group agrees with other
parties to exchange, at specified intervals, the difference between the fixed rate and the floating rate interest amounts calculated
by reference to the agreed notional principal amounts. The remaining terms and notional principal amounts of the outstanding
forward rate and swap agreements at 31 March were:
Less than 1 year – 100
Later than 1 year and not later than 5 years – –
Sensitivity analysis
An increase of 100 basis points (2009: 250 basis points) in the interest rates at the reporting date would have decreased profit or loss
by R3 million (2009: R4 million). This analysis assumes that all other variables, in particular foreign currency rates, remain constant.
A decrease of 100 basis points in the interest rates at the reporting date would have had the equal opposite effect.
Net fair values
The net fair values of the Group’s derivative financial instruments at the balance sheet date were:
Unfavourable interest rate swap contracts – (1)
Unfavourable foreign exchange contracts (56) (217)
2010
Rm
2010
Rm
2009
Rm
2009
Rm