Notes to the Financial Statements - Efacec

Statistically, as of that date, this rate meant an annual gross cost of 3,206 thousand Euro.
If there were a worsening of the overall average rate of 0.5%, the annual interest cost would be 3,961
thousand Euro. If on the other hand there were a drop in overall average interest rates of 0.5%, the
annual interest rate cost would be 3,215 thousand Euro. The gross impact would be +/- 373 thousand
Euro.
Efacec Capital Group manages the interest rate risk through derivatives contracted on its medium and long term fi nancing, thus
enabling the impact of interest changes to be mitigated (Note 5).
Denomination of Loans
The accounting value of Group loans is entirely denominated in Euro.
Unused Credit Lines
The Group also has the following credit lines that have not yet been used:
2007 2006
At variable rates
Due within one year 15.155.000 12.128.000
Due after 1 year 12.500.000 0
27.655.000 12.128.000
Those credit lines falling due within one year are automatically renewed for the consolidation of the fi nancial liabilities of the
Group.
12. Deferred taxes
Deferred tax assets and liabilities are set off against each other if the company has a legally executable right to set off current tax
assets against current tax liabilities, and when the deferred taxes concern the same tax authority.
The deferred tax assets and liabilities are as follows:
2007 2006
Deferred tax assets:
Deferred tax assets recoverable after 12 months 598.579 606.903
Deferred tax assets recoverable within 12 months 0 0
Deferred tax liabilities:
598.579 606.903
Defered tax liabilities recoverable after 12 months 3.513.491 3.461.021
Defered tax liabilities recoverable within 12 months 0 0
3.513.491 3.461.021
-2.914.912 -2.854.117
The movements on deferred tax assets and liabilities during the year were as follows:
Provisions for
Investments
58
Receivables/Other
Debtor Provisions
Adjust.
IFRS
Other Total
As at 1 January 2006 676.377 825.000 184.902 1.978.340 3.664.619
Carried to profi t and loss -112.353 -825.000 - -1.950.907 -2.888.260
Carried to profi t and loss - Fin Instrs. -169.455 -169.455
As at 31 December 2006 564.024 0 15.447 27.433 606.904
Carried to profi t and loss -295 0 -1.876 6.366 4.195
Carried to profi t and loss - Fin Instrs. 0 0 -12.520 0 -12.520
Other movements/reclassifi cations -41.411 41.411 0 0 0
As at 31 December 2007 522.318 41.411 1.051 33.799 598.579
Deferred tax assets for provisions will be written off proportionately to the use of the related provisions.
Deferred tax assets for provisions on investments correspond to shareholdings in Liaoyang EFACEC Electric Equipment Corp and
Portugal Space.
In 2006, the reversal of provisions on Trade and Other debtors concerns the cancellation of the provision set up for Universal
Motors, after the write off of the debt.