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 (continued)(iii)Interest rate risk (continued)Interest rate risks – Increase / Decrease of 1% in Net Interest MarginThe 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.Fair Values of Financial instruments2009 2008KShs’000KShs’000Effect on Effect on Effect on Effect onProfit equity Profit equity+ 1% Movement 12,133 8,493 17,931 12,551-1 % Movement (12,133) (8,493) (17,931) (12,551)The table below is a comparison by category of carrying amounts and fair values of all the company’s fi nancialinstruments, which are carried in the fi nancial statements.Financial assetsCarrying amountFair value2009 2008 2009 2008KShs 000 KShs 000 KShs’ 000 KShs’ 000Cash 286,512 490,670 286,512 490,670Short term deposits 1,225,450 497,939 1,225,450 497,939Trade and other receivables 682,809 538,386 682,809 538,386Amount due from related party 58,972 - 58,972 -Financial liabilitiesTrade and other payables 1,198,230 934,339 1,198,230 934,339Borrowings 3,261,080 2,696,878 3,261,080 2,696,878East African Portland Cement Co. Ltd Annual Report and Financial Statements FY 2008/200967The Directors are of the opinion that the carrying value of fi nancial instruments approximates fair value due.