Annual Report 2012 - Indesit

Consolidated financial statements at 31 December 2012 – Notes
Management of the credit risk with commercial counterparts is entrusted to the individual Country
Managers working with the market Credit Controllers, who apply procedures for the evaluation and
granting of credit limits that are specific to each geographical area or country in which the Group
operates.
As required by IFRS 7, the following qualitative and quantitative information is provided about the
impact of these risks on the Group.
With regard to the various market risks, the quantitative data from the sensitivity analyses has no value
for forecasting purposes and cannot reflect the complexity of the market reactions correlated with
each change in the assumptions made.
11.1.1 Liquidity risk
The Group defines liquidity risk as the risk that a Group company, or the Group as a whole, may be
unable to meet its obligations on a timely basis. This risk has two components:
Funding Risk: the risk of not being able to meet financial obligations on the due dates and/or being
unable, on a timely basis, to obtain the necessary liquidity on market terms;
Market Risk: the risk of not being able to realize financial investments on a timely basis and/or on
market terms.
Liquidity risk is contained by:
• a capital structure that is balanced between own funds and borrowing;
• diversifying the various sources of finance;
• spreading the maturities of financial payables over an extended time horizon;
• establishing limits for maturities and credit counterparts in the management of liquidity;
• maintaining unused committed and uncommitted lines of credit.
Available, undrawn committed lines of credit at 31 December 2012 amount to 400.0 million euro,
comprising a syndicated line from banks arranged in July 2011 and expiring in 2016. At 31 December
2011, the unused, committed lines of credit totaled 400.0 million euro.
At 31 December 2012, the Group has drawn down the amortizing line of credit for 75.0 million euro
made available by the EIB and repayable by 2018, as well as the revolving line of credit from Bank
Pekao S.A. for 80.0 million zloty, expiring in 2013. The Group has significant uncommitted lines of credit
available at 31 December 2012, of which only 49.5 million euro has been drawn down.
During 2012, the Group maintained the securitization program arranged in 2010 as part of its
sources of funds. As required by IAS 39, the receivables sold via the securitization program are not
derecognized and remain reported as trade receivables, while the related financial payables are
reported as liabilities.
No significant available lines of credit were revoked during the year.
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