158
CONSOLIDATED FINANCIAL STATEMENTS
b) Credit risk
The group’s main activity covers sales paid in cash or by
debit/credit cards. As such, the group does not have rele-
vant credit risk concentrations. It has policies ensuring that
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 suffi-
cient amount of cash and bank deposits, the feasibili-
ty 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 65 mil-
lion euros, compared with 36 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 2014 the renewal of the commercial
paper programmes (7.000.000 euros). However, in case
of need, cash and cash equivalents and cash flows from
operations are sufficient to settle current loans.
In the current situation, to lower bank loans the com-
pany opted to increase financial debt maturity and to
maintain a significant share of the short term debt. On
December 31, 2013, the use of short term liquidity cash
flow support was of 7%. Investments in term deposits of
17 million match 36% of liabilities paid.
The following table shows the Group financial liabilities
(relevant items), considering contractual cash-flows:
2014 from 2015
to 2024
Bank loans and
overdrafts
16,194,368 6,417,821
Commercial paper
7,000,000 17,000,000
Financial leasing
61,483
-
Suppliers of fixed
assets c/ a
4,912,144
-
Suppliers c/ a
18,527,041
-
Other creditors
8,948,303 411,298
Total
55,643,339 23,829,119
