6
b) Liquidity risk. The Company’s liquidity policy is to arrange credit
lines and current financial assets that are sufficient to support its
financial needs, on the basis of expected business performance.
c) Credit risk. The Company does not have a significant credit risk
since the average customer collection period is very short and
guarantees are required for deferred payment sales. Cash placements
are made and derivative instruments are arranged with institutions of
recognised solvency.
d) Interest rate risk. Both the Company's cash and its bank
borrowings are exposed to interest rate risk. The Company's financing
is at interest rates tied to Euribor. To mitigate this risk, the Company
has arranged interest rate swaps to limit the finance costs arising from
its floating-rate borrowings.
In accordance with Article 538 of the Spanish Limited Liability
Companies Law, the Annual Corporate Governance Report (IAGC)
forms part of this Directors' Report. The IAGC constitutes a relevant
event and is communicated to the Spanish National Securities Market
Commission, which publishes it on its website:
. It is
also available on the Company's corporate website,
.
