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Parent Company Financial Report |
EXPLANATORY NOTES
2014 Annual Report
Prysmian Group
326
c) Comfort letters in support of bank guarantees given to
Group companies
Comfort letters in support of bank guarantees given in the
interest of Group companies amount to Euro 70 thousand at
31 December 2014, all of which relating to P.T. Prysmian Cables
Indonesia (Euro 73 thousand at 31 December 2013).
d) Other guarantees given in the interest of Group companies
These amount to Euro 1,005,862 thousand at 31 December
2014 (Euro 961,456 thousand at 31 December 2013), analysed
as follows:
2014
2013
Prysmian Cavi e Sistemi S.r.l.
56,641
42,766
Prysmian Netherlands B.V.
65,643
47,740
Prysmian PowerLink S.r.l.
848,881
837,246
Prysmian Cables & Systems Limited
25,422
23,750
Prysmian Kabel und Systeme GmbH
242
242
Fibre Ottiche Sud - F.O.S. S.r.l.
7,965
7,712
Other companies
1,068
2,000
Total
1,005,862
961,456
The comfort letters and guarantees given in the interest of
Group companies in (c) and (d) mainly refer to projects and
supply contracts and to the offsetting of VAT credits under
the Group VAT settlement.
e) Comfort letters in support of bank guarantees given in
the interest of the Company
These amount to Euro 54,424 thousand, compared with Euro
2,124 thousand in the prior year. The increase mainly reflects
the guarantees given in the interest of Prysmian S.p.A. and
Prysmian Cavi e Sistemi S.r.l. to the European Commission for
the fine discussed in Note 12. Provisions for risks and charges.
As required by art. 2427 point 22-ter, it is reported that,
in addition to the above disclosures about commitments,
there are no other agreements that are not reflected in the
statement of financial position that carry significant risks or
benefits and which are critical for assessing the Company's
assets and liabilities, financial position and results of oper-
ations.
Transactions between Prysmian S.p.A. and its subsidiaries
mainly refer to:
• services (technical, organisational and general) provided
by head office to subsidiaries;
• charging of royalties for the use of patents to Group
companies that benefit from them;
• financial relations maintained by the Parent Company on
behalf of, and with, Group companies.
25. RELATED PARTY TRANSACTIONS
All the above transactions fall within the ordinary course of
business of the Parent Company and its subsidiaries.
The disclosures of related party transactions also include the
compensation paid to Directors, Statutory Auditors and Key
Management Personnel.
More details about related party transactions are provided in
the attached table "Intercompany and related party transac-
tions (disclosure under art. 2428 of the Italian Civil Code)".
(in thousands of Euro)