IBERSOL Annual Report 2018

ANNUAL REPORT 2018 13. INVENTORIES On 31 December 2018 and 2017, stocks were broken down as follows: dec/ 2018 dec/ 2017 Raw material and consumables 11.237.246 11.795.797 Merchandise 460.061 369.091 11.697.307 12.164.888 Decreases -74.981 -74.981 Net inventories 11.622.326 12.089.907 The cost of inventories recognized in 2018 as an expense and included under “cost of sales” amounted to € 102.831.054 (in 2016: € 102.831.054), as shown below: dec/ 2018 dec/ 2017 Initial balance 12.164.888 11.622.192 Currency conversion -1.103.696 -12.572 Perimeter variation - - Purchases 113.244.710 107.338.968 Inventories changes -3.809.195 -3.952.646 Final balance 11.697.307 12.164.888 Cost of sales 108.799.400 102.831.054 The value of stocks changes mainly relates to staff meals at the workplace and con- sumer packagings. 14. CASH AND CASH EQUIVALENTS On 31st December 2018 and 2017, cash and cash equivalents are broken as follows: dec/2018 dec/2017 Cash 1.082.754 2.979.988 Bank deposits 36.847.870 31.922.395 Treasury applications 500 500 Cash and bank deposits in the balance sheet 37.931.124 34.902.883 Bank overdrafts -5.882.564 -20.344 Cash and cash equivalents in the cash flow statement (1) 32.048.560 34.882.539 (1) there are no significant cash and cash equivalents unavailable for use by the Ibersol group. Of this amount 3.067.700 eur (3.502.329 eur in 2017) are deposited in Angola, existing restrictions on its use outside the country, authorization from BNA (Angola central bank) and access to the purchase of foreign currency is required. 267