LISI GROUP - 2015 Financial report

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CONSOLIDATED FINANCIAL STATEMENTS
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LISI 2015 FINANCIAL REPORT
Companies Head office Country % of control % interests
LISI AUTOMOTIVE Rapid SAS Puiseux Pontoise (95) France 100.00 100.00
LISI AUTOMOTIVE Mecano GmbH Heidelberg Germany 100.00 100.00
LISI AUTOMOTIVE KKP GmbH Mellrichstadt Germany 100.00 100.00
LISI AUTOMOTIVE KKP GmbH & CO KG Mellrichstadt Germany 100.00 100.00
LISI AUTOMOTIVE (BEIJING) CO., Ltd Beijing China 100.00 100.00
LISI AUTOMOTIVE Form a.s Cejc Czech Republic 100.00 100.00
LISI AUTOMOTIVE India Pvt Ltd Ahmedabad India 100.00 100.00
LISI JIEHUA AUTOMOTIVE Co. Ltd Hong Kong Hong Kong 100.00 100.00
LISI AUTOMOTIVE (SHANGHAI) CO., Ltd Shanghai China 100.00 100.00
LISI AUTOMOTIVE KNIPPING Verbindungstechnik
GmbH
Kierspe Germany 100.00 100.00
LISI AUTOMOTIVE BETEO GmbH Gummersbach Germany 100.00 100.00
LISI AUTOMOTIVE BETEO GmbH & CO KG Gummersbach Germany 100.00 100.00
LISI AUTOMOTIVE KNIPPING Espana S.A. Madrid Spain 100.00 100.00
LISI AUTOMOTIVE KNIPPING Ltd Solihull UK 100.00 100.00
LISI AUTOMOTIVE Monterrey SA de CV Monterrey Mexico 100.00 100.00
LISI AUTOMOTIVE LLC Laredo USA 100.00 100.00
LISIMEDICALDivision
LISI MEDICAL JEROPA inc. Escondido (California) USA 100.00 100.00
LISI MEDICAL SAS Neyron (01) France 100.00 100.00
LISI MEDICAL Fasteners SAS Neyron (01) France 100.00 100.00
LISI MEDICAL Orthopaedics SAS Hérouville Saint-Clair (14) France 100.00 100.00
2.5 / FINANCIAL RISK MANAGEMENT
The Group is exposed to the main following risks arising from
the use of financial instruments:
■■credit risk,
■■liquidity risk,
■■market risk,
■■interest rate risk,
■■currency risk.
This note presents the information on the Group's exposure to
each of the risks above, its objectives, policy and procedures for
measuring and managing risk, and for capital management.
Quantitative information is given in other sections of the
consolidated financial statements.
The aim of the Group's risk management policy is to identify
and analyze the risks to which it is exposed, define the upper
and lower risk limits and the controls required to manage risk
and ensure compliance with the limits defined.
2.5.1 Credit risk
Credit risk is the Group's risk of financial loss in the event that a
customer or other party in a financial instrument fails to meet
their contractual obligations. This risk derives mainly from
trade receivables and securities held for sale.
Trade and other receivables
Group exposure to credit risk is mainly influenced by individual
customer profiles. The Group has a policy of monitoring trade
receivables, allowing it to constantly control its third party risk
exposure. The Group believes that the credit risk of write-off of
past due receivables is minimal.
At December 31, 2015 the amount of provisions for doubtful
debts amounted to €4.5 million, to be compared to total
receivables of €178.5 million. The amount of the permanent
losses recognized over the year was €0.1 million.
Risk on investment securities
On December 31, 2015, the Group's balance sheet showed cash
and cash equivalents of €125.8 million (see §2.6.2.3 Cash and
cash equivalents). The cash equivalents are mainly made of
marketable securities represented by monetary mutual funds,
invested in very short maturity securities and representing no
risk in capital, in accordancewith theGroup's cashmanagement
policy. In accordance with accounting rules, these investments
are valued at their market price at year-end.