Integrated Reports Senwesbel Consolidated Financial Statements 2018 - Page 46

21.1.1.3 FOREIGN EXCHANGE RISK The group has minimal exposure to fluctuations in mainly the rand/US dollar exchange rate in respect of imports and exports. Foreign currency transactions are mainly concluded for the purchasing and selling of inventory. Foreign exchange contracts are concluded for specific transactions to hedge against fluctuations in exchange rates. The currency risk on group level was Rnil as at 30 April 2018 (2017: Rnil). The fair value adjustment on foreign exchange contracts is recognised through profit and loss. A sensitivity analysis is not indicated since the amount is not material. 21.1.1.4 INTEREST RATE RISK FUNDING The group is naturally hedged against fluctuating interest rates to a large extent since interest-bearing debt is mainly utilised for assets earning interest at fluctuating rates. GROUP 2018 Interest rate risk Property, plant and equipment Investment in joint ventures Investment in associate NON-INTEREST- INTEREST- ASSETS EARNING ASSETS EARNING ASSETS R’m R’m R’m 1 291 1 291 - 265 265 - 27 27 - 38 38 - 995 995 - Trade and other receivables (current) 2 828 48 2 780 Loans and other receivables (non-current) 1 079 - 1 079 Inventory held to satisfy firm sales 144 144 - Other current assets 187 6 181 6 854 2 814 4 040 Other non-current assets Inventory Total (2 985) Interest-­bearing liabilities Net exposure to interest rate risk (limited to Rnil) - GROUP 2017 Interest rate risk Property, plant and equipment Investment in joint ventures Investment in associate Other non-current assets NON-INTEREST- INTEREST- ASSETS EARNING ASSETS EARNING ASSETS R’m R’m R’m 1 202 1 202 - 228 228 - 25 25 - 22 22 - 674 674 - Trade and other receivables (current) 2 557 58 2 499 Loans and other receivables (non-current) 1 031 - 1 031 Inventory held to satisfy firm sales 75 75 - Cash and short-term deposits 14 - 14 164 - 164 5 992 2 284 3 708 Inventory Other current assets Total Interest-­bearing liabilities ]^\H[\\]H\ [Z]Y[ B BB[\\\H]\[HYY[[[\\H[\\ YX\[\]^YY[\\ XX\[XX[]Y\˂[\\]\\HYYHYX[و[[X[[[Y[[[Y\وY][]H܈[[\\ XX\[›XX[]Y\YۚYX[H^YY[\\ YX\[\]˂ BSTБSSPSSSPSUSQS NHB[\ؙ[[Z]YYΈ NNM M͌K