Annual report 2012 - Comrod

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Annual report 2012 54/92Strategies and values | Group | Parent company | Corporate governance | ContactAnnual report Financial statement NotesNote 24: Financial instrumentsCapital managementCapital includes equity attributable to the equity holders of the parent.The primary focus of the Group’s capital management is to ensure that it maintains a strong credit rating and a healthy capital ratio inorder to support its business and maximize shareholders value.The Group manages its capital structure and makes adjustments to it, in light of changes in the economic conditions. To maintain oradjust the capital structure the Group may issue new shares. No changes were made in the objectives, policies or processes during 2012.The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.The Group includes within net debt, trade and other payables, less cash and cash equivalents.2012 2011Interest bearing loans and borrowings 81 540 89 548Trade and other payables 37 125 48 086Short term loans 24 073 32 807Less cash and short-term deposits -7 960 -29 545Net debt 134 779 140 897Equity 104 512 127 657Total capital 104 512 127 657Capital and net debt 239 291 268 554Gearing ratio 56% 52%Financial riskThe Comrod Group’s international activities expose it to currency risk and interest risk. The Group uses derivatives to minimise currencyrisks under its strategy for currency risk management. The procedures for risk management are adopted by the board and carried out bythe chief financial officer in close cooperation with the individual operating units.The Group uses the following financial instruments: cash and cash equivalents, trade and other receivables, trade payables, other currentliabilities, long term interest bearing debt and derivative financial instruments were hedge accounting has not been applied. See notes 13,15, 20, 21, 22 and 23 for book value of these instruments.(i) Credit riskExcept the one major customer (see note 4) amounting to 21 % of revenues (2011: the one major customer amounting to 34 %), thegroup has no significant concentrations of credit risk relating to one counterparty or a number of counterparties which can be consideredto be a group due to similarities in credit risk. The customer is a major company and the credit risk is considered to be low.The group has policies and procedures in place to ensure that sales of products are made to customers with an appropriate credit historyand that outstanding amounts do not exceed the defined credit limits.The group has not issued guarantees for the liabilities of third parties.The carrying amount of financial assets, including derivatives, on the balance sheet allows for the maximum risk exposure.As counterparties in derivative transactions are normally bankers, the credit risk associated with derivatives is considered to benegligible.54
Annual report 2012 55/92Strategies and values | Group | Parent company | Corporate governance | ContactAnnual report Financial statement NotesCont. Note 24: Financial instrumentsAs at 31 December, the aging analysis of trade receivables is as follows:NOK 1000Not dueDueNumber of days since due date0 - 30days31 - 60days61 - 90days91 - 180days181 - 360daysover oneyear2012 25 548 19 321 7 381 2 497 1 530 1 318 6 595 02011 48 788 17 711 5 762 2 846 1 283 5 643 2 177Most of the customers are big companies and/or public organisation and entitites. Losses on receivables has historically been low,reflecting a relatively low risk. Sales to new and unknown customers are normally conditioned by LOC or other type of collateral.NOK 0.7 million (2011: NOK 0.6 million) of the due amount is related to Comrod France SAS. The company has a credit insurancecovering 100% of the outstanding amount.(ii) Interest rate riskSee note 20 for information on long-term loans, note 21 for short-term financing obligations and note 23 for information on finance leaseobligations. The group has only floating interest on loans and credits and has currently no strategy for interest rate hedging.(iii) Liquidity riskThe Comrod Group’s strategy is to have, at any given time, sufficient cash, cash equivalents and credit facilities to be able to financeoperations and investments over the next 3 months. Unused credit facilities are dealt with in note 15. Excess liquidity is mainly investedin bank deposits. Note 20 describes all the companies non-current liabilities. To meet with future growth Comrod has in February 2009been offered extended credit facilities with a permanent perspective.Future investments will continuously be evaluated and decided upon with basis on the liquidity status, benefits and the possibilities forhaving further long-term liabilities.See note 20, 21, 22 and 23 for information for maturity date for liabilities and debt.Year ended 31 December 2012:Less than 3months3 to 12months1 to 5years >5 years TotalInterest-bearing loans and borrowing 401 1 204 59 036 20 034 80 274 note 20Leasing 136 407 724 1 266 note 23Trade payables 15 177 89 15 265 note 22Other payables and expenses 23 415 3 943 27 358 note 2239 129 5 643 59 759 20 034 124 164Year ended 31 December 2011:Less than3 months3 to 12months1 to 5years >5 years TotalInterest-bearing loans and borrowing 4 479 13 438 51 096 18 726 87 739Leasing 136 407 1 266 1 809Trade payables 20 457 2 265 22 722Other payables and expenses 23 853 6 389 30 24248 925 22 499 52 363 18 726 142 512Bank overdraft by 24 073 KNOK year ended 31 December 2012 and 32 807 KNOK year ended 31 December 2011 is not included in thetabell above.55
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Annual report 2012 - Comrod

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