EFTA01367118.pdf

Amendment #4 Page 689 of 868 Itrttir4. reettet Management is aware of the existing nonce cabi0ons and based on es knowledge and experience, controls the handily nsk exchange rate nsk and credt nsk by fotowing the policies approved by the Board The most important aspects n the management of these nsks are the following Market risk Market risk is be nsk that the fair value of figure cash flows of a (mono& instrumert fluctuates due to changes in market pnces Market pnces comprise three nsk types. merest rate risk, exchange rate risk and commodity piece risk n the case of the Company. the financial instruments affected by market risk include deposits and fnancol obligations, which are exposed to exchange rate risk and merest rate risk The serenity analysis presented in the following section relates to the position as of December 31, 2014 and 2013 The sensitivity analysis has been prepared considering trot the emporia:in of financial instniments in foregn currency terrains constant (0 Interest rate nsk Interest rate nsk is defined as a nskwhereby a tar value. a a financial instnenents future cash flow, fkottetes as a testa of changes to netted rates n Ire market The Company's exposure to market interest rate risk retain ixincipaly to long-term financial obligations wth variable literati rates. The Company's policy is to mainly obtain finareing at food roost rate The Compeer's Management considers that interest rates risk is rot significant due to the interest rates of Rs rimming ageemern are rot signhcartly different from Me market interest rates a similar 'flannel instruments The shortserm and long-term debts are agreed at toted rates therefore, any change in interest rates will rot affect the results of the Company (ii) Exchange rate risk Exchange rate risk is the risk that the fad value a fusee cash flows of a ftiarts instrument fluctuate due to changes in the exchange rates The Company's exposae to exchange rates is related cherry to its operating arty lies The folowng table ;relents the effects on income before income tax or a reasonable variation in the exchange rale considenrg constant the rest of venation. desated in note 20 Increase (decrease) Effect on income In bests points before Income Tax 9. 2014 •10 basis pats 18,967,678 2014 .10 basis ports (18.907,678) 2013 410 [GEIS poets 9.970,757 2013 -10 basis parts (9.970.757) Omit risk Credit nsk a tre riskthat courtergerty fails to meet its cidgator* wider a financial nstment or contact causwg a toss The Company is exposed to credit risk from is operating whales. mainly fa its accounts receivable, and is financing admires. including deposits with banks arc financial nations. foreign carency transactions and other financial instruments. Management beteves that the Company has F-369 http://cfdocs.btogo.com:27638/cf/drv7/pub/edgar/2015/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0058646 CONFIDENTIAL SDNY_GM_00204830 EFTA01367118