Annual Report 2012 - IOI Group

42. FINANCIAL INSTRUMENTS (Continued)42.2 Interest rate risk (Continued)42.2.2 Interest rate risk exposure (Continued)As at the end of the reporting period, the Group and the Company have also entered into the following interestrate swap contracts:Group2012i. Interest rate swaps to swap notional principal amount of USD600 million from floating interest rate to fixedinterest rate to hedge against interest rate fluctuations. The effective period for these cross currency swaps isfrom October 2010 to October 2017.ii.Interest rate swap to swap notional principal amount of USD74 million from floating interest rate to fixedinterest rate to hedge against interest rate fluctuations. The effective period for this cross currency swap is fromDecember 2011 to December 2016.2011i. Interest rate swaps to swap notional principal amount of USD600 million from floating interest rate to fixedinterest rate to hedge against interest rate fluctuations. The effective period for these cross currency swaps isfrom October 2010 to October 2017.Company2012i. Interest rate swaps to swap notional principal amount of USD600 million from floating interest rate to fixedinterest rate to hedge against interest rate fluctuations. The effective period for these cross currency swaps isfrom October 2010 to October 2017.2011i. Interest rate swaps to swap notional principal amount of USD600 million from floating interest rate to fixedinterest rate to hedge against interest rate fluctuations. The effective period for these cross currency swaps isfrom October 2010 to October 2017.42.2.3 Sensitivity analysisSensitivity analysis on interest rate is applied on floating rate financial instruments only, as the carrying amount offixed rate financial instruments are measured at amortised cost.A 50 basis points increase in interest rates would have decreased profit for the Group and increased profit for theCompany by approximately RM2 million (2011 – nil) and RM1 million (2011 – RM1 million) respectively, and a 50basis points decrease in interest rates would have increased profit for the Group and decreased profit for theCompany by approximately RM2 million (2011 – nil million) and RM1 million (2011 – RM1 million) respectively.Annual Report 2012IOI CORPORATION BERHAD 225