ITF

70 ITF FINANCIAL STATEMENTS NOTES (FORMING PART OF THE FINANCIAL STATEMENTS) (f ) Capital management The Group's main assets are its investments and deposits, the management of which is charged to specialist investment managers who operate under investment guidelines which are regularly reviewed by the Directors. There is a combined risk on this asset – firstly, the performance of the investment managers and secondly the performance of the bond and equity markets. The Directors have taken a prudent view of future returns from the investments in their long term financial planning and estimates. 31. Financial instruments (cont.) The forward exchange contracts are being used to hedge the foreign currency risk of the firm commitments. A movement of $0.01 in the mark to market valuation would result in a change in the fair value of $89,000 on the Sterling hedges contracts and $23,000 on the Euro hedges. The Group's exposure to foreign currency risk is as follows. This is based on the carrying amount for monetary financial instruments except derivatives when it is based on notional amounts. Sterling Euro US Dollar Other Total $'000 $'000 $'000 $'000 $'000 Cash and cash equivalents 1,211 1,439 7,339 814 10,803 Trade receivables 228 342 6,235 742 6,847 Trade payables (484) (70) (139) - (693) Forward exchange contracts - 354 (450) - (96) Net exposure 955 2,065 12,985 856 16,861 31 December 2013 Sterling Euro US Dollar Other Total $'000 $'000 $'000 $'000 $'000 Cash and cash equivalents 3,450 1,485 6,486 2,438 13,859 Trade receivables 203 923 6,010 745 7,881 Trade payables (460) - - (195) (655) Forward exchange contracts - (91) 1,370 - 1,279 Net exposure 3,193 2,317 13,866 2,988 22,364 31 December 2014

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