LISI GROUP - Financial Report 2013 - page 39

LISI FINANCIALREPORT2013 I 39
CONSOLIDATEDFINANCIALSTATEMENTS 3
Companies HeadOffice Country %of control % interests
LISIAUTOMOTIVEMecanoGmbH Heidelberg Germany 100.00 100.00
LISIAUTOMOTIVEKKPGmbH Mellrichstadt Germany 100.00 100.00
LISIAUTOMOTIVEKKPGmbH&COKG Mellrichstadt Germany 100.00 100.00
LISIAUTOMOTIVE (BEIJING)CO.,Ltd Beijing China 100.00 100.00
LISIAUTOMOTIVEForma.s Cejc CzechRepublic 100.00 100.00
LISIAUTOMOTIVE IndiaPvtLtd Ahmedabad India 100.00 100.00
LISI JIEHUAAUTOMOTIVECo.Ltd HongKong HongKong 100.00 75.00
LISIAUTOMOTIVE (SHANGHAI)CO.,Ltd Shanghai China 100.00 75.00
LISIAUTOMOTIVEKNIPPINGVerbindungstechnikGmbH Kierspe Germany 100.00 100.00
LISIAUTOMOTIVEBETEOGmbH Gummersbach Germany 100.00 100.00
LISIAUTOMOTIVEBETEOGmbH&COKG Gummersbach Germany 100.00 100.00
LISIAUTOMOTIVEKNIPPINGEspanaS.A. Madrid Spain 100.00 100.00
LISIAUTOMOTIVEKNIPPINGLtd Solihull UK 100.00 100.00
LISIMEDICALDivision
LISIMEDICAL JEROPA INC. Escondido (California) USA 100.00 100.00
LISIMEDICALSAS Neyron (01) France 100.00 100.00
SEIGNOL -HUGUENYSAS Neyron (01) France 100.00 100.00
LISIMEDICALOrthopaedicsSAS HérouvilleSaint-Clair (14) France 100.00 100.00
(A)Change inthenameof INDRAEROMAROCtoLISIAEROSPACECreuzetMarocon1 January2013.
2.4 | FINANCIALRISKMANAGEMENT
The Group is exposed to the following risks arising from the use of
financial instruments:
n creditrisk,
n liquidityrisk,
n marketrisk,
n interestraterisk,
n currencyrisk.
ThisnoteprovidesinformationontheGroup’sexposuretoeachoftherisks
listedabove, itsobjectives,policies,measurementand riskmanagement
procedures,aswellas itscapitalmanagement.Quantitative information
isprovided inotherpartsoftheconsolidated financialstatements.
Theaimof theGroup’s riskmanagementpolicy is to identifyandanalyze
riskswhich theGroup faces, todefine the limitswithinwhich risksmust
be confinedand thecontrols tobe implemented, tomanage riskand to
ensurecompliancewiththeprescribed limits.
Credit risk
Credit risk is theGroup's riskof financial loss in theevent thatacustomer
or other party in a financial instrument fails tomeet their contractual
obligations.Thisriskderivesmainly fromtradereceivablesandsecurities
held forsale.
Tradeandotherreceivables
Groupexposuretocreditrisk ismainly influencedby individualcustomer
profiles.TheGrouphasapolicyofmonitoringtradereceivables,allowing
it to constantly control its thirdparty riskexposure. TheGroupbelieves
thatthecreditriskofwrite-offofpastduereceivables isminimal.
Securitiesrisk
LISI S.A’s shareportfolio is not a speculative, rather of investments and
holdings, and accordingly no particular share represents a risk. As at
December 31, 2013, the Group's balance sheet displays cash and cash
equivalents for €94m. The cash equivalents are made of marketable
securitiesrepresentedbymonetarymutual funds, invested inveryshort
maturitysecuritiesandrepresentingnorisk incapital, inaccordancewith
the Group's cashmanagement policy. In accordance with accounting
rules, these investmentsarevaluedattheirmarketpriceatyear-end.
In accordance with IAS 32, own shares are recognized upon their
acquisition. Their value is deducted from equity and changes in value
are not recorded. When own shares are acquired or disposed of, the
shareholders' equity is adjustedby the amount of the fair value of the
securities bought or sold. The acquisition of 77,352 own shares and
the disposal of 88,018 own shares in 2013 result in a €0.5m increase of
shareholders' equityovertheperiod.