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the Group enters into forward exchange contracts to manage the risks associated with the purchase of foreign currency denominated products. 

the table below analyses the Group’s derivative financial instruments that will be settled on a gross basis into relevant 

maturity groupings based on the remaining period at the balance date to the contractual maturity date. the amounts disclosed in the table are the contractual undiscounted cash flows. they are expected to occur and affect the profit or loss at various dates between balance date and the following five years. 

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## Fair values 

the following methods and assumptions were used to estimate the fair values for each class of financial instrument. 

## Trade debtors, trade creditors and bank balances 

the carrying value of these items is equivalent to their fair value. 

## Term liabilities 

the fair value of the Group’s term liabilities is estimated based on current market rates available to the Group for debt of similar maturity. 

## Foreign exchange contracts and interest rate swaps 

the fair value of these instruments is estimated based on the quoted market price of these instruments. 

## Guarantees and overdraft facilities 

the fair value of these instruments is estimated on the basis that management do not expect settlement at face value to arise. the carrying value and fair value of these instruments is nil. details of guarantees are included in note 23. all guarantees are repayable on demand. 

