NOTICE OF ANNUAL GENERAL MEETING
statisTICS OF SHAREHOLDINGs
FINANCIAL CONteNts
CORPORATE GOVERNANCE REPORT
85
Navigating Challenges • EMBRACING DIVERSITY | ANNUAL REPORT 2015
Notes to the financial statements
15 Financial risk management (Cont’d)
Currency risk
The Group is exposed to currency risk on sales and purchases, including inter-company sales, purchases and
inter-company balances that are denominated in a currency other than the respective functional currencies
of Group entities. The currencies in which these transactions primarily are denominated are the United States
dollar and Australian dollar.
The Group’s and the Company’s exposure to foreign currencies is as follows:
Group
Company
2015
2014
2015
2014
$’000
$’000
$’000
$’000
United States dollar
Trade and other receivables
9,740
8,094
3
3
Cash and cash equivalents
3,506
13,280
–
–
Trade and other payables
(867)
(4,351)
–
–
12,379
17,023
3
3
Australian dollar
Trade and other payables
(26)
(27)
–
–
The Group does not have a formal policy to hedge its financial assets and liabilities denominated in foreign
currencies.
Sensitivity analysis
A 10% strengthening of the United States dollar and Australian dollar against the functional currencies of the
respective entities within the Group at the reporting date would (increase)/decrease the (loss)/profit before
tax by the amounts below. This analysis is based on foreign currency exchange rate 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. The analysis is performed on the same basis for 2014 and
2015, albeit that the reasonably possible foreign exchange rate variances may have been different.
Group
Company
2015
2014
2015
2014
$’000
$’000
$’000
$’000
United States dollar
1,238
1,703
*
*
Australian dollar
(3)
(3)
–
–
1,235
1,700
*
*
*
Less than $1,000
A 10% weakening of the United States dollar and Australian dollar against the functional currencies of the
respective entities within the Group would have the equal but opposite effect on the (loss)/profit before tax to
the amounts shown above, on the basis that all other variables remain constant.
