McConnell Dowell 2019 Annual Review

82 McConnell Dowell Group Notes to the annual financial statements (continued) for the year ended 30 June 2019 22. Financial risk management objectives and policies (continued) The following sensitivity analysis is based on the foreign currency risk exposure in existence at the balance date, with all other variables remaining constant: At balance date, had the Australian Dollar moved, as illustrated in the table below, with all other variables held constant, post tax profit and equity would have been affected as follows: Interest rate risk The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s cash and cash equivalents. All interest bearing loans and borrowings (see note 17) are at fixed rates. Given the nature of financial assets and liabilities exposed to interest rate risk, management does not consider interest rates to be a significant risk to the Group. The Group does not have any interest rate swaps in place, but does constantly analyse its interest rate exposure. Within this analysis consideration is given to existing positions, alternative financing and the mix of fixed and variable interest rates. As at balance date, the Group had the following exposure to interest rates: All figures are in A$ 000’s 2019 2018 2019 2018 Consolidated 10% increase in AUD rates with all other variables held constant (947) (430) (947) (430) 10% decrease in AUD rates with all other variables held constant 1,157 525 1,157 525 Post tax profit Higher / (lower) Equity Higher / (lower) A sensitivity of 10% has been selected as this is considered reasonable given the current level of exchange rates and the volatility observed both on a 5 year historical basis and market expectations for potential future movement. All figures are in A$ 000’s 2019 2018 Financial assets Cash and cash equivalents 102,843 141,762 Total financial assets 102,843 141,762 Total exposure 102,843 141,762 Consolidated Financial Statements 2019