159
ANNUAL REPORT AND CONSOLIDATED ACCOUNTS 2013
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 31st December 2013 the gearing ratio was of 17%
and on 31st December 2012 of 19%, as follows:
Dez-13
Dez-12
Bank loans
46,673,672 54,838,614
Cash and bank deposits -22,166,785 -26,748,790
Net indebtedness
24,506,887 28,089,824
Equity
119,440,096 116,599,331
Total capital
143,946,983 144,689,155
Gearing ratio
17%
19%
Given the current constraints of the financial markets
and despite the goal of placing the gearing ratio in the
range 35% -70%, prudently, in 2013 we have a 17% ratio.
14.2 ESTIMATED FAIR VALUE
The fair value of financial instruments commercialised
in active markets (such as publicly negotiated deriva-
tives, securities for negotiation and available for sale)
is determined based on the listed market prices on the
consolidated statement of financial position date. The
market price used for the group’s financial assets is the
price received by the shareholders in the current mar-
ket. The market price for financial liabilities is the price
to be paid in the current market.
The nominal value of accounts receivable (minus impair-
ment adjustments) and accounts payable is assumed to
be as approximate to its fair value. The fair value of fi-
nancial liabilities is estimated by updating future cash
flows contracted at the current market interest rate that
is available for similar financial instruments.
4. IMPORTANT ACCOUNTING ESTIMATES
AND JUDGMENTS
Estimates and judgements are continuously evaluated
and are based on past experience and on other factors,
including expectations regarding future events that are
believed to be reasonably probable within the respec-
tive circumstances.
The group makes estimates and outlines premises
about the future. Generally, accounting based on esti-
mates rarely corresponds to the real reported results.
Estimates and premises that present a significant risk
of leading to a material adjustment in the accounting
value of the assets and liabilities in the following year
are described below:
