LensCrafters 2015 Annual Report Download - page 115

Notes to the consolidated financial statement as of December 31, 2015 Page 21 di 68
monitored by the Group Treasury Department through financial guidelines to ensure that all the Group subsidiaries maintain
relations with primary bank counterparties. Credit limits with respect to the primary financial counterparties are based on
evaluations and analyses that are implemented by the Group Treasury Department.
Within the Group there are various shared guidelines governing the relations with the bank counterparties, and all the
companies of the Group comply with the “Financial Risk Policy” directives.
Usually, the bank counterparties are selected by the Group Treasury Department and cash availabilities can be deposited, over
a certain limit, only with counterparties with elevated credit ratings, as defined in the Financial Risk Policy.
Operations with derivatives are limited to counterparties with solid and proven experience in the trading and execution of
derivatives and with elevated credit ratings, as defined in the policy, in addition to being subordinate to the undersigning of an
ISDA (International Swaps and Derivatives Association) Master Agreement. In particular, counterparty risk of derivatives is
mitigated through the diversification of the counterparty banks with which the Group deals. In this way, the exposure with
respect to each bank is never greater than 25% of the total notional amount of the derivatives portfolio of the Group.
During the course of the year, there were no situations in which credit limits were exceeded. Based on the information available
to the Group, there were no potential losses deriving from the inability of the abovementioned counterparties to meet their
contractual obligations.
Liquidity risk
The management of the liquidity risk which originates from the normal operations of the Group involves the maintenance of an
adequate level of cash availabilities as well as financial availabilities through an adequate amount of committed credit lines.
With regards to the policies and actions that are used to mitigate liquidity risks, the Group takes adequate actions in order to
meet its obligations. In particular, the Group:
1 utilizes debt instruments or other credit lines in order to meet liquidity requirements;
1 utilizes different sources of financing and, as of December 31, 2015, had unused lines of credit of approximately
Euro 632.0 million;
1 is not subject to significant concentrations of liquidity risk, both from the perspective of financial assets as well as in
terms of financing sources;
1 utilizes different sources of bank financing but also a liquidity reserve in order to promptly meet any cash
requirements;
1 implements systems to concentrate and manage the cash liquidity (Cash Pooling) in order to more efficiently manage
the Group financial flows, thereby avoiding the dispersal of liquid funds and minimizing financial charges; and
1 monitors, through the Treasury Department, forecasts on the utilization of liquidity reserves of the Group based on
expected cash flows.
The following tables include a summary, by maturity date, of assets and liabilities at December 31, 2015 and December 31,
2014. The reported balances are contractual and undiscounted figures. With regards to forward foreign currency contracts, the
tables relating to assets report the flows relative to receivables only. These amounts will be counterbalanced by payables, as
reported in the tables relating to liabilities.