49 / 148
40
The Group determines the financial resources required with the two-fold objective of
ensuring the Group companies’ capacity to continue operating and maximising profitability
by optimising Group debt and equity. The Group’s financial structure taken as a whole
consists of the equity attributable to the Parent’s shareholders (comprising share capital,
share premium, retained earnings and other items), bank borrowings and cash and cash
equivalents. The Group reviews this structure regularly and, taking into account the costs
and risks associated with each type of funding (debt or equity), takes the appropriate
decisions to achieve the aforementioned objectives.
b)
Share premium
As indicated in Note 11-a, the difference between the issue price and the par value of the
new shares (i.e. EUR 2.62 per share) was treated as a share premium, amounting to EUR
38,304 thousand, which was fully paid as a result of the transfer en bloc of the assets and
liabilities of Gestora de Inversiones Audiovisuales La Sexta, S.A.
c)
Restricted reserves
Legal reserve
Under the Spanish Limited Liability Companies Law, the Company must transfer 10% of
net profit for each year to the legal reserve until the balance of this reserve reaches at
least 20% of the share capital.
The legal reserve can be used to increase capital provided that the remaining reserve
balance does not fall below 10% of the increased share capital amount. Otherwise, until
the legal reserve exceeds 20% of share capital, it can only be used to offset losses,
provided that sufficient other reserves are not available for this purpose.
The shareholders at the Annual General Meeting of the Parent held on April, 24 2013
approved, among other resolutions, the proposed distribution of the profit for 2012,
whereby EUR 2,193 thousand were transferred to the legal reserve. With this contribution
the Parent’s legal reserve reached the legally stipulated level.
Reserve for retired capital
As a result of the capital reduction made in 2006, a reserve of EUR 8,333 thousand was
established, equal to the par value of the retired shares, which may only be used if the
same requirements as those for the reduction of share capital are met, pursuant to Article
335-c of the Spanish Limited Liability Companies Law.
Other restricted reserves
Restricted reserves include an amount of EUR 281 thousand which is restricted as to its
use since it corresponds to the “Reserve for the Adjustment of Share Capital to Euros”.
“Equity - Retained Earnings” in the consolidated balance sheet includes a restricted
reserve arising from the subsidiary Uniprex, S.A. (Sole-Shareholder Company). This is a
reserve for goodwill, amounting to EUR 19,079 thousand, recognised by appropriating