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Corporate Governance Report
iii) analyze the risk profile of customers.
d) Liquidity risk
As mentioned above, the current situation on
financial markets has given greater relevance
to liquidity risk. Financial planning based on
forecast cash flows in more than one scenario
and for longer periods than one year has become
a requirement for the Group. The short-term
treasury is based on the annual planning that is
reviewed quarterly and adjusted daily. Related
to the dynamics of the underlying business,
the Group’s Treasury has provided a flexible
management of commercial paper and the
negotiation of credit lines available at all times.
The policy of open dialogue with all partners
has allowed to maintain a financial relationship
with a high degree of confidence, despite the
liquidity constraints that are now debating
the Portuguese Banking. 2011 has been a
difficult year for the market, the company
has demonstrated significant ability to secure
financial resources continue to have contracted
lines and funds placed at their disposal that
does not use significant amounts in. Moreover,
the group instead the cost focused on liquidity
risk and increased funding for medium and long
term that resulted in replacement of short term
lines up with some surplus for the creation of
applications. Management of liquidity risk also
involves maintaining a comfortable level of
financial resources available. The Group ended
the year with about 28 million in financial
resources available, 24 millions of it in time
deposits which represents a slight increase face
to the year-end 2010, and represent about
50% of the liability remunerated.
e) Capital risk
The company seeks to maintain a level of equity
capital that suits the characteristics of its main
business (cash sales and supplier credit) and
to ensure continued expansion. The balance of
capital structure is monitored based on the ratio
of leverage (defined as net interest bearing debt
/ (net interest bearing debt + equity)) with the
aim of within the range 35% -70%. By prudently
address the constraints of existing markets in
2011, we record a ratio of 20%.
Environmental
Management of this risk area is coordinated
by the Quality Division. Its main focus is on
implementing the policy deriving from the
Ibersol Sustainability Principles, so that the
processes and procedures across all hierarchic
levels can be applied to the environment. The
adoption of good environmental management is
a concern of the Board of Ibersol which consists
in promoting a responsible and proactive in
managing resources and waste.