METKA GROUP | ANNUAL REPORT 2012 - page 118

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Price risk regarding financial instruments available for sale is considered limited since the stocks represent a
minimal part of the total Group Assets.
40.3 Credit Risk
The credit risk of the Group mainly consists from the customer’s inability to pay in time partially or in total his
liabilities. The Group’s turnover mainly comes from transactions with public institutions and also with foreign
companies of low risk rating. As a result, the credit risk is minimal. According to the above the Credit risk of
the Group is estimated to be minimum.
The Group continuously monitors defaults of customers and other counterparties, identified either individually
or by group. Group policy is to deal only with creditworthy counterparties.
Group management considers that all financial assets that are not impaired for each of the reporting dates
under review are of good credit quality. None of Group’s financial assets are secured by collateral or other
credit enhancements.
It is also mentioned that the company is exposed to credit risk, through security for debts provided to third
parties.
There is a concentration of credit risk from clients, since a significant percentage of the consolidated turnover
is formed by only a few clients. This credit risk is counterbalanced by the high credit ratings of those clients.
40.4 Liquidity Risk
The liquidity risk is kept at a low level, having sufficient cash equivalents and negotiable securities. In addition
to this, there exist unused credit lines from financial institutions.
The Group is managing its cash requirements, due to close overview of its borrowings and daily payments.
A potential cash flow risk lies with the good execution and procurement of the projects, since there might be a
cash elimination due to non-conformity to the terms and conditions of the contracts.
The maturity of the financial liabilities as of 31/12/2012, for the Group and Company, are as follows:
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