notes to the financial statements for the year ... - Investing In Africa

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009 (continued)38. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)Market risk(i)Foreign exchange riskThe Company undertakes certain transactions denominated in foreign currencies. Exchange rate exposures aremanaged within approved policy parameters.The carrying amounts of the Company’s foreign currency denominated monetary assets and liabilities at the balancesheet date are as follows:UShs US$ YEN DKK2009 KShs’000 KShs’000 KShs’000 KShs’000AssetsBank and cash balances 53,563 330,555 - -Trade receivables 46,194 134,166 - -LiabilitiesBorrowings - - 3,261,080 -Trade and other payables - 41,987 82,761 33,1092008AssetsBank and cash balances 34,711 730,415 - -Trade receivables 39,336 154,499 - -LiabilitiesBorrowings - - 2,696,878 -Trade and other payables 3,278 40,226 236,298 1,030Foreign exchange risk – Appreciation/Depreciation of KShs against other currencies by 1%The following sensitivity analysis shows how profi t and equity would change if the market risk variables had beendifferent on the balance sheet date with all other variables held constant.2009 2008KShs’000KShs’000Effect on Effect on Effect on Effect onProfit equity Profit equityEast African Portland Cement Co Ltd Annual Report and Financial Statements 200965Currency – Ugandan shillings+ 1% KShs movement (536) (161) 708 495- 1% KShs movement 536 161 (708) (495)Currency - US dollars+ 1% KShs movement 3,106 932 8,447 5,913- 1% KShs movement (3,106) (932) (8,447) (5,913)Currency - Yen+ 1% KShs movement (32,416) (9,725) (26,780) (18,746)- 1% KShs movement 32,416 9,725 26,780 18,746