151
ANNUAL REPORT AND CONSOLIDATED ACCOUNTS 2012
sales on credit are performed to customers with a suitable
credit history. The group has policies that limit the amount
of credit to which these customers have access.
c) Liquidity risk
Liquidity risk management implies maintaining a suf-
ficient amount of cash and bank deposits, the feasibil-
ity of consolidating the floating debt through a suitable
amount of credit facilities and the capacity to liquidate
market positions. Treasury needs are managed based
on the annual plan that is reviewed every quarter and
adjusted daily. Related with the dynamics of the under-
lying business operations, the group’s treasury strives
to maintain the floating debt flexible by maintaining
credit lines available.
The Group considers that the short-term bank loans are
due on the renewal date and that the commercial paper
programmes matured on the dates of denunciation.
At the end of the year, current liabilities reached 60 mil-
lion euros, compared with 42 million euros in current
assets. This disequilibrium is, on one hand, a financial
characteristic of this business and, on the other hand,
due to the use of commercial paper programmes in
witch the Group considers the maturity date as the re-
newal date, regardless of its initial stated periods. In
order to ensure liquidity of the short term debt it is ex-
pected in the year 2013 the renewal of the commercial
paper programmes. However, in case of need, cash and
cash equivalents and cash flows from operations are
sufficient to settle current loans.
In the current financial markets pressure, to lower
bank loans the company opted to increase financial
debt maturity and to maintain a significant share of
the short term debt. On December 31, 2012, the use
of short term liquidity cash flow support was of 9%.
Investments in term deposits of 19 million match 35%
of liabilities paid.
The following table shows the Group financial liabilities
(relevant items), considering contractual cash-flows:
2013 from 2014
to 2024
Bank loans and overdrafts 10,639,364 12,921,533
Commercial paper
7,000,000 24,000,000
Financial leasing
216,205
61,514
Suppliers of fixed assets c/ a 3,082,746
-
Suppliers c/ a
18,900,334
-
Other creditors
7,477,687 325,188
Total
47,316,336 37,308,235
d) Capital risk
The company aims to maintain an equity level suitable
to the characteristics of its main business (cash sales
and credit from suppliers) and to ensure continuity and
expansion. The capital structure balance is monitored
based on the gearing ratio (defined as: net remunerated
debt / net remunerated debt + equity) in order to place
the ratio within a 35%-70% interval.
On 31
st
December 2012 the gearing ratio was of 19%
and on 31
st
December 2011 of 20%, as follows:
Dec-12
Dec-11
Bank loans
54,838,614 57,644,963
Cash and cash
equivalents
26,748,790 29,316,069
Net indebtedness
28,089,824 28,328,894
Equity
116,599,331 114,845,206
Total capital
144,689,155 143,174,100
Gearing ratio
19% 20%
