METKA GROUP | ANNUAL REPORT 2014 - page 110-111

109
108
41.3 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.
Annual Financial Statements
The assets exposed to credit risk on the
statement of Financial Position reporting
date analyzed as follows:
Group METKA
METKA S.A.
(Amounts in thousands
)
31/12/2014
31/12/2013
31/12/2014
31/12/2013
-
-
Trade and other receivables
208,768
354,580
200,618
313,099
Cash and cash equivalents
288,314
134,542
192,866
56,398
497,082
489,122
393,484
369,497
The Group’s turnover mainly comes from transactions with public in-
stitutions and also with foreign companies of low risk rating. As a re-
sult, the credit risk is minimal. According to the above the Credit risk
of the Group is estimated to be minimum. Receivables which are not
impaired and are delayed, are not considered doubtful. The amounts
included in the table above do not include non-invoiced receivables
from construction contracts under IAS 11.
The Group continuously monitors defaults of customers and other
counterparties, identified either individually or by group.
Group management considers that all financial assets that are not im-
paired 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.
There is a concentration of credit risk from clients, since a significant
percentage of the consolidated turnover is formed by only a few cli-
ents. This credit risk is counterbalanced by the high credit ratings of
those clients and the advance payments received by them.
41.4 Liquidity Risk
Liquidity risk is the risk that arises when illiquid assets are insufficient
to meet the liabilities at the date of expiry.
The liquidity risk is kept at a low level, having sufficient cash equiva-
lents and negotiable securities.
The Group is managing its cash require-
ments, due to close overview of its borrow-
ings 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 condi-
tions of the contracts.
The table below analyzes the financial li-
abilities of the Company and of the Group
into relevant maturity groupings based on
the remaining period at the reporting date
of the financial statements until the date
of expiry of current liabilities. The amounts
disclosed in the table are the contractual
undiscounted cash flows. Balances due
within 12 months equal their carrying bal-
ances, as the impact of discounting is not
significant and does not include liabilities
from construction contracts under the
scope of IAS 11.
The maturity of the financial liabilities as of
31/12/2014 and as of 31/12/2013, for the
Group and Company, are as follows:
Group METKA
Liquidity Risk Analysis - Liabilities
(Amounts in thousands
)
2014
up to 6 months
6 to 12 months
1 to 5 years
after 5 years
Total
Long Term Loans
-
-
1,268
822
2,090
Short Term Loans
2,194
156
-
-
2,350
Leasing liabilities
-
-
-
-
-
Trade and other payables
83,729
5,355
13,773
-
102,857
Other payables
5,950
8,320
-
-
14,270
Total
91,872
13,832
15,042
822
121,567
Group METKA
Liquidity Risk Analysis - Liabilities
(Amounts in thousands
)
2013
up to 6 months
6 to 12 months
1 to 5 years
after 5 years
Total
Long Term Loans
-
-
1,268
1,135
2,403
Short Term Loans
7,092
160
-
-
7,252
Leasing liabilities
-
-
-
-
-
Trade and other payables
116,888
5,432
-
-
122,319
Other payables
4,407
-
-
-
4,407
Total
128,387
5,591
1,268
1,135
136,381
METKA S.A.
Liquidity Risk Analysis - Liabilities
(Amounts in thousands
)
2014
up to 6 months
6 to 12 months
1 to 5 years
after 5 years
Total
Long Term Loans
-
-
-
-
-
Short Term Loans
-
-
-
-
-
Leasing liabilities
-
-
-
-
-
Trade and other payables
82,893
5,355
13,773
-
102,022
Other payables
5,222
8,320
-
-
13,542
Total
88,115
13,676
13,773
-
115,564
METKA S.A.
Liquidity Risk Analysis - Liabilities
(Amounts in thousands
)
2013
up to 6 months
6 to 12 months
1 to 5 years
after 5 years
Total
Long Term Loans
-
-
-
-
-
Short Term Loans
4,840
-
-
-
4,840
Leasing liabilities
-
-
-
-
-
Trade and other payables
110,406
7,251
-
-
117,657
Other payables
10,907
-
-
-
10,907
Total
126,153
7,251
-
-
133,404
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