AEG 21604 G Bedienungsanleitung PDF herunterladen (Seite 351)

F-110

The Group's exposure to credit risk is influenced mainly by the individual characteristics of each customer.

However, management also considers the demographics of the Group's customer base, including the default risk

of the industry and country in which customers operate, as these factors may have an influence on credit risk,

particularly in the currently deteriorating economic circumstances. The Group's Italian and Canadian subsidiaries

each derive more than 50% of their revenues from a single customer. The subsidiaries concerned have long-

standing and close associations with these customers and this concentration does not constitute a significant risk

for the Group as a whole.

New customers are analysed individually for creditworthiness before orders are accepted. Payment and other

terms are set commensurate with the level of risk perceived by the Group and this may include sales made on a

prepayment basis. The Group's review includes external ratings, when available, and in some cases bank refer-

ences. Purchase limits are established for each customer and these limits are reviewed regularly.

More than 50% percent of the Group's customers have been transacting with the Group for over four years, and

losses have occurred infrequently.

The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect of

trade and other receivables and investments. The main components of this allowance are a specific loss compo-

nent that relates to individually significant exposures, and a collective loss component established for groups of

similar assets in respect of losses that have been incurred but not yet identified. The collective loss allowance is

determined based on historical data of payment statistics for similar financial assets.

Investments

The Group limits its exposure to credit risk by investing only in liquid securities and only with solid counterpar-

ties.

Guarantees

The Group provides guarantees and performance bonds when required for specific projects and such guarantees

are approved by Group management.

At December 31, 2009 the value of guarantees issued by the Group amounted to €9.9 million net of those cov-

ered by cash collateral.

b) Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its

financial liabilities that are settled by delivering cash or another financial asset. The Group's approach to manag-

ing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when

due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the

Group's reputation.

The Group monitors its cash status and projected sources and needs throughout the year as part of the process in

place to ensure the company maintains adequate liquidity.

At 31 December 2009 the Group had the following lines of credit and receivable financing facilities:

• €2.5 million overdraft facilities held by certain of the Group's subsidiaries. The facilities are unsecured

(except for an amount of €0.8 million which is secured against trade receivables).

• €31.8 million receivable financing facility (of which €15 million relates to the discontinued activity)

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AEG 21604 G Bedienungsanleitung Seite 351