METKA ANNUAL REPORT 2015 - page 112-113

112
113
Annual Financial Statements for FY 2015
04
40.3 Anaudited fiscal years
The unaudited fiscal years for the companies of the Group are as follows:
Notes:
Starting with the year 2011 and in accordance with paragraph 5
of Article 82 of Law 2238/1994, the Group companies whose fi-
nancial statements are audited by mandatory statutory auditor
or audit firm, under the provisions of Law 2190/1920, are subject
to a tax audit by statutory auditors or audit firms and receives
annual Tax Compliance Certificate. In order to consider that the
fiscal year was inspected by the tax authorities, must be applied
as specified in paragraph 1a of Article 6 of POL 1159/2011.
For the fiscal year 2012 and 2013, the Group companies which
were subject to tax audit by statutory auditors or audit firm, re-
ceived a Tax Compliance Certificate free of disputes in 2013 and
2014 accordingly.
For the 2014 tax audit, the companies of the Group which oper-
ate in Greece have been subjected to a tax audit by Sworn Audi-
tors according to article 65A par. 1 of law 4174/2013 and of law
4262/2014. Said tax audit has been completed during 2015 and
the tax certificates were distributed by the statutory auditors.
For fiscal year 2015, the tax audit which is being carried out by the
auditors is not expected to result in a significant variation in tax
liabilities incorporated in the financial statements.
40.4 Court claims & arbitration proceedings
The Company and its subsidiaries are involved in (as a defend-
ant or plaintiff) in various lawsuits and arbitration proceedings
in their operation. Management and its legal advisors believe
that the lawsuits will not have a material adverse effect on the
financial position of the Group or the Company, and the results
of operations.
METKA’s court claim against supplier
There is a pending legal claim of the parent company from a sup-
plier of € 28,1 million amount which relates to compensation for
poor performance. The defendant company has filed a declara-
tory action claiming that it has no obligation to pay the Company
the above amount. The Company shall acknowledge in its results
the amount that may be assigned to it at the time of a positive
outcome and recovery.
For the above case, the defendant company has also requested
arbitration against the absorbed company RODAX S.A., the cases
of which are automatically taken over by METKA.
41. Risk management objectives and policies.
The following Risk management policy is being applied :
evaluating the risks related to the Group’s activities and op-
erations,
design the methodology and choose the appropriate finan-
cial products to mitigate the risks and,
execute/implement, according to the approved procedure
by the management, the risk management strategy.
41.1 Financial Risk Factors
Based on its activities, our Group is exposed to a limited
range of financial risks that emerge from changes in foreign
exchange rates, interest rates as well as to credit risks, liquid-
ity risks and cash flow risks.
The Group’s general risk management primary deals with
the good execution of works, the credibility and the good
execution of procurement and afterwards comes the credit
risk and the market risk.
The risks exposure is managed through the Group’s two
main Divisions: Financial & Administrative Division, and Pro-
jects Division.
Prior to their commitment, such transactions are approved
by the executives entitled to do so.
The table below represents the sensitivity of the result and equity in relation to assets and liabilities at the exchange rate
EUR/USD, EUR/GBP, EUR/RON, EUR/TRL, EUR/SYP, EUR/DZD , EUR/JOD , EUR/IQD.
Assuming that the said exchange rates deviate by 5% on 31/12/2015 (in 2014:5%), the effect in result and equity is as follows:
Increase by 5% :
Decrease by 5% :
In order to minimize the exchange currency risk that occurs mainly by trading with countries outside the European union
(mostly US $), the treasury department of the Group enters into currency swaps on the behalf of each company, when is
necessary.
41.2 Market Risk
Foreign Currency Risk
The Group’s functional currency is Euro. Exchange rate risk
arising from transactions with customers and suppliers in
foreign currency
The Group is exposed to foreign currency risk due to trans-
actions with customers and suppliers in foreign currency,
the majority of which are in USD. Contracts in USD are the
Iraq project as well as the new project in Ghana.
Foreign Currency financial assets and liabilities are trans-
lated into Euros, at the closing rate, as follows:
Company
Anaudited fiscal years
ΜΕΤΚΑ S.A.
2009-2010
SERVISTEEL S.A.
2010
ΕLΕΜΚΑ S.A.
2010
RODAX ATEE
2010-30/06/2011
DROSCO HOLDINGS LIMITED
2003-2015
BRIDGE ACCESSORIES & CONSTRUCTION SYSTEMS
2010,2014,2015
METKA BRAZI SRL
2008-2015
POWER PROJECTS
2010-2015
Joint Venture ΜΕΤΚΑ - ΤΕΡΝΑ
2009-2015
METKA RENEWABLES LIMITED
2015
RIVERA DEL RIO
2015
METKA-EGN LTD (CYPRUS)
2015
METKA-EGN LTD (UK)
2015
METKA - EGN SpA
2015
METKA EGN USA LLC
2015
2015
2014
Αmounts in
thousands €
Nominal
Amounts
USD SYP GBP TRL DZD JOD IQD USD SYP GBP RON TRL DZD JOD IQD
Financial Assets
138,119 382 5,111 8,290 13,123 198 -
85,877 481
33 1,743 14,375 6,162 2,097 -
Financilal
Liabilities
(155,369 ) (651 ) (5,573 ) (1,386 ) (9,472 ) (553 ) (67 ) (32,300 ) (958 ) (91 )
- (404 )
-8,769 -3,235 (58 )
Total
(17,250 ) (269 ) (462 ) 6,905 3,652 (355 ) (67 ) 53,577 (477 ) (58 ) 1,743 13,970 (2,608 ) (1,138 ) (58 )
Short-term
exposure
14,905 (269 ) (462 ) 6,905 3,652 (355 ) (67 )
58,737 (477 ) (58 ) 1,743 13,970 (2,608 ) (1,138 ) (58 )
2015
2014
Αmounts in
thousands €
USD SYP GBP TRL DZD JOD IQD USD SYP GBP RON TRL DZD JOD IQD
Earnings before tax
(863 )
(13 )
(23 )
345 184 -18 (3 )
2,679 (24 )
(3 )
87 699 (130 )
-57 (3 )
Equity
(1,323 )
(10 )
(18 )
345 149 (15 ) (2 )
2,021
(18 )
(2 )
70 559 (106 )
(49 ) (2 )
2015
2014
Αmounts in
thousands €
USD SYP GBP TRL DZD JOD IQD USD SYP GBP RON TRL DZD JOD IQD
Earnings before tax
863 13
23 (345 )
(184 )
18 3 (2,679 )
24 3 (87 ) (699 )
130 57 3
Equity
1,323 10 18 (345 )
(149 )
15 2 (2,021 )
18 2 (70 ) (559 )
106 49 2
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