Current and anticipated financial situation of the Group
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Evaluation of the financial resources management

In 2017, the Group was maintaining the policy of financing its operations from its own funds and provided overdraft facilities.

Cooperation with several banks provided the possibility of even employment of the committed capital and maintaining a suitable level of funds for everyday operations.

Activity of the Group in respect of foreign exchange transactions was determined by the exchange rates of basic currencies, EUR and USD. The Group’s policy is to use natural hedging of foreign currency exchange risk, by offsetting proceeds and expenses in foreign currencies.

ELEKTROBUDOWA Group maintained wide cooperation with banks and insurance companies with respect to guarantees, which is reflected in the guarantee lines granted for contract guarantees such as bid bonds, advance payment bods, performance bonds and warranty bonds, and also guarantees to secure timely payment of debt.

The major scope of agreements with banks concerns lines of guarantee within multipurpose limits granted up to the total amount of 654 050 thousand PLN (of which guarantee line: 585 350 thousand PLN, line of credit 68 500 thousand PLN and limit for credit cards: 200 thousand PLN).
As at 31 December 2017 the guarantee lines were utilized in the amount of 299 543 thousand PLN.

Total amount of multi-purpose credit limits provided by banks in 2016 was 660 050 thousand PLN (line of guarantees 555 350 thousand PLN, lines of credit 104 500 thousand PLN, and a limit for credit cards 200 thousand PLN).
As at 31 December 2016 they were utilized in the amounts: 318 311 thousand PLN of guarantee limits and 34 929 thousand PLN of working capital loan.

Within the cooperation with insurance companies, the Company was granted an aggregate limit of 209 465 thousand PLN in respect of guarantees, of which 78 119 thousand PLN was utilized as at 31 December 2017.
In 2016, the aggregate limit for contract bonds granted by insurance companies amounted to 225 465 thousand PLN, of which 65 412 thousand PLN was utilized.

Basing on the data described above, the Management Board of the parent company assesses that the funds available to the Group are sufficient to service its current operating activity.

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