EFTA01367219.pdf

Amendment #4 Page 790 of 868 able of toi The lease expense 'naffed by the Company in 2014 amounted to 1 utru17.687 (2013 USS326,156) (Note 16). The Company bebeves fret future annual tease commitments cost should approximate 2014 lease expense amounts (exclusion of the aforementioned inflation aduuments) trough the expiration of the PPA discussed above. 20. Financial risk management objectives and policies The Company, main financial instruments are cash, accounts receivable rotes and loans payable. accounts payable and accrued expenses. and denvatNe financial inetrumerts The man purpose of trese financial instrumeres is to manage cash flows and raise f tensing for the Company's captal needs Energla Bales is exposed to market credit and laxity nsks The Company s senor Management oversees the rrenagemem of these nets 20.1 Market risk Market risks the risk that the fair value d future cash fiats Ora Math' intikurnert will fluctuate because of changes in market pion Market risk comprise three typed risk interest rate risk. cirrercy risk and other price risk etch as equty prce nsk and comnality risk Sgrdicart mallet nsla affecting the Company's Name' stetements are foreign currency risk arc interest rate ask ForWpn currency Mk FrXertaiCtrrenCy risks the risk that the fair value or future cash flows of a financial instrument will fluctuate because 01 Chances in foreign exchange rates Erwsta Edam's exposure to the risk U changes in ktregn exchange rates ate; primarily 10 the Company's operating actuthes (when revenue or expense is denomnated in a different currency from the Companies presentation currency) The Honduran Lempra is the non foreign currency used by the Carpany n its transactions The Horatan Central Bank is the entity responsible for managing the national Corking system and regulating the currency's parity to other currencies BIN and sell rates are established by authtinzed (inertial instititions. according to market supply and demand As of De:ember 31, 2014 and 2013, buy and sell rates for US doled; were L21 51 and L21 66 (2013 L20 59 and L20.74). respectwely Below es a summary of monetary assets and teddies in foreign currencies, expressed in US dears 2014 2013 Assets Cash S 63,268 S 4 076230 Accounts receivable 2 432 716 3 158 791 2,486,964 7235,021 babbles Accounts payable and accrued expenses (135,004) (320234) Net monetary assets S 2,360103 S 6914,787 Sensevay analyse. The effect of a reasonable exchange rate variation between the °empire and the USS of +4361-4% on the monetary assets and liabilities as Deserter 31. 2014 (2013:.3%! assuring that the remainingvariables are held constant, voukt imply the recogniton of gars a losses from exchange rate differences d USS104,726 In 2014 (2013: USS220.172). F-470 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-0058747 CONFIDENTIAL SDNY_GM_00204931 EFTA01367219