Complete Annual Report - Uralita

9. Inventories
The detail of this heading at 31 December 2005 and 2004 is the following:
Thousands of euros 2005 2004
Commercial inventories 9,114 12,310
Raw materials and other supplies 33,652 50,893
Finished goods and work in process 50,103 82,418
TOTAL 92,869 145,621
10. Trade and other receivables
At 31 December 2005 and 2004, a number of consolidated companies had signed a contract with “GC
Compass Spain 1, Asset Securitization Fund”, managed by Gestcaixa and authorised by the Spanish
Securities Exchange Commission, for the assignment of collection rights. The Group has a contract with
this entity to administer the rights until final settlement to collection from customers. Pursuant to this
contract, Group companies transfer each month the rights to collection from customers that meet
certain requirements. Collection rights transferred in 2005 and 2004 amounted to €703 and €494
million, respectively, of which €130 and €174 million correspond to unmatured receivables at the end of
each period, recognised under “Other current financial assets” in the consolidated balance sheets.
The accounts transferred may be settled in cash by the financial entity except for an amount withheld
as a guarantee against bad debts, dilution and other items. The €110,024 and €147,463 thousand
financed at 31 December 2005 and 2004, respectively, are included under “Other current financial
liabilities” in the consolidated balance sheets.
The average credit period in the sale of goods and services is approximately 80 days. Interest is not
generally charged on accounts receivable. The Group has recorded a provision for estimated
uncollectible amounts from the sale of goods for €2,229 and €2,798 thousand in 2005 and 2004,
respectively. The provision was determined based on the Group’s experience and on an account-byaccount
analysis of the main receivables.
11. Equity
11.1. Issued capital
At Uralita S.A.’s General Shareholders’ Meeting held on May 26, 2004, shareholders agreed to reduce the
par value of the shares comprising the issued capital by splitting each €2.16 share into three new shares
with a par value of €0.72 each.
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