66 ANNUAL REPORT  2013  KATHMANDU Summarised sensitivity analysis The following table summarises the sensitivity of the Group’s financial assets and financial liabilities to interest rate risk and foreign  exchange risk. A sensitivity of -10% / +10% (2012: -10% / +10%) for foreign exchange risk has been selected. While it is unlikely that an equal  movement of the New Zealand dollar would be observed against all currencies an overall sensitivity of -10% / +10% (2012: -10%  / +10%) is reasonable given the exchange rate volatility observed on a historic basis for the preceding five year period and market  expectation for potential future movements. A sensitivity of 1% (2012: 1%) has been selected for interest rate risk. The 1% is based on reasonably possible changes over a  financial year, using the observed range of historical data for the preceding five year period. Amounts are shown net of income tax. All variables other than applicable interest rates and exchange rates are held constant.  The impact on equity is presented exclusive of the impact on retained earnings. The parent is not sensitive to either interest rate or foreign exchange risk. GROUP INTEREST RATE RISK FOREIGN EXCHANGE RISK -1% +1% -10% +10% 31 July 2013 Carrying  amount  $’000 Profit  $’000 Equity  $’000 Profit  $’000 Equity  $’000 Profit  $’000 Equity  $’000 Profit  $’000 Equity  $’000 Derivative financial instruments (asset)  / liability (7,228) (449) 735 449 (761) - (12,036) - 9,847 Financial assets Cash 2,345 (17) - 17 - 145 - (119) - Trade receivables and sundry debtors 1,008 - - - - (17) - 14 - (17) - 17 - 128 - (105) - Financial liabilities Trade payables 33,032 - - - - (2,040) - 1,669 - Borrowings 42,309 423 - (423) - - (2,225) - 1,820 423 - (423) - (2,040) (2,225) 1,669 1,820 Total increase / (decrease) (43) 735 43 (761) (1,912) (14,261) 1,564 11,667 GROUP INTEREST RATE RISK FOREIGN EXCHANGE RISK -1% +1% -10% +10% 31 July 2012 Carrying  amount  $’000 Profit  $’000 Equity  $’000 Profit  $’000 Equity  $’000 Profit  $’000 Equity  $’000 Profit  $’000 Equity  $’000 Derivative financial instruments (asset)  / liability 3,879 (459) 209 459 (216) - (9,246) - 7,565 Financial assets Cash 1,811 (13) - 13 - 106 - (87) - Trade receivables and sundry debtors 1,422 - - - - (79) - 65 - (13) - 13 - 27 - (22) - Financial liabilities Trade payables 29,304 - - - - (1,869) - 1,529 - Borrowings 53,737 537 - (537) - - (2,179) - 1,783 537 - (537) - (1,869) (2,179) 1,529 1,783 Total increase / (decrease) 65 209 (65) (216) (1,842) (11,425) 1,507 9,348