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Notes to the Financial Statements
28 FINANCIAL RISK MANAGEMENT (CONTINUED)
(c) Market risk (Continued)
Foreign currency risk (Continued)
Exposures to significant foreign currency risk are as follows:
US Dollar
Group $’000
As at 31 December 2011
Derivative financial assets 4
Cash and cash equivalents 18,134
Derivative financial liabilities (126)
Interest-bearing borrowings (627,279)
(609,267)
As at 31 December 2010
Derivative financial assets 55
Cash and cash equivalents 41,334
Interest-bearing borrowings (576,867)
Trade and other payables (484)
(535,962)
Sensitivity analysis
A strengthening of the respective functional currencies of the Group’s operations, as indicated below, against
the US Dollar at 31 December would have increased/(decreased) profit or loss (before any tax effects) by the
amounts shown below. This analysis is based on foreign currency exchange rates variances that the Group
considered to be reasonably possible at the end of the reporting period. The analysis assumes that all other
variables, in particular interest rates, remain constant and ignores any impact of forecasted sales and purchases.
The analysis is performed on the same basis for 2010, as indicated below:
Profit or loss
Group $’000
As at 31 December 2011
US Dollar 60,927
As at 31 December 2010
US Dollar 53,596
A weakening of the foreign exchange rates at 31 December 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.
SAR1112034_TCT_AR_().indb 108 3/23/2012