Catom Annual Report 2020 EN

3.11. Taxes Taxes on the result for the year are calculated on the result before taxes as presented in the profit and loss account, taking into account any available deductible prior-year tax losses (insofar as not included under deferred tax receivables) as well as tax-exempt profit components and the addition of non-deductible expenses. Any changes in deferred tax assets and deferred tax liabilities as a result of changes in the applicable tax rate are also taken into account.

Corporation tax is charged on to the companies included in the tax entity as if these participating interests were individually liable for tax.

4. Financial instruments and risk management

4.1. Market risk 4.1.1. Currency risk

The currency risk of the group mainly relates to positions and future transactions in US dollars. The number of outstanding transactions of this type is insignificant. The company therefore does not hedge these risks. 4.1.2. Interest risk and cash flow risk The Group is exposed to interest risk on interest-bearing receivables (particularly those included under financial fixed assets and cash) and interest-bearing long-term and short-term payables (including debts to credit institutions).

No variable interest rate arrangements or financial derivative contracts are entered into to cover the interest risk in respect of receivables and loans.

4.2. Liquidity risk The Group has taken out a credit facility with a bank. Where necessary, additional security is provided to the bank for credit facilities that are made available. 4.3. Credit risk The Group does not have a significant concentration of credit risks. It sells only to customers who meet the Group’s creditworthiness criteria.

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