CONSOLIDATED FINANCIAL STATEMENTS >
EXPLANATORY NOTES
126
| 2013 ANNUAL REPORT | PRYSMIAN GROUP
B.1
BASIS OF PREPARATION
The present financial statements have been prepared on a
going concern basis, with the directors having assessed that
there are no financial, operating or other kind of indicators
that might provide evidence of the Group’s inability to meet
its obligations in the foreseeable future and particularly in the
next 12 months.
In particular, the Group’s estimates and projections have
been prepared taking into account possible developments in
the investigations by the European Commission and other
jurisdictions into alleged anti-competitive practices in the
high voltage underground and submarine cables market, as
well as the risk factors described in the Directors’ Report. The
assessments carried out confirm Prysmian Group’s ability to
operate as a going concern and to comply with its financial
covenants.
Section D. Financial risk management and Section D.1 Capital
EIB Loan
On 18 December 2013, Prysmian S.p.A. entered into a loan
agreement with the European Investment Bank (EIB) for
Euro 100 million, to fund the Group’s European research &
development (R&D) programmes over the period 2013-2016.
The EIB Loan is particularly intended to support projects
developed in the Group’s R&D centres in six countries:
France, Great Britain, The Netherlands, Spain, Germany and
Italy and represents about 50% of the Prysmian Group’s
planned investment expenditure in Europe during the period
concerned.
The EIB Loan was received on 5 February 2014; it will be repaid
in 12 equal half-yearly instalments starting on 5 August 2015
and ending on 5 February 2021.
The consolidated financial statements contained herein were
approved by the Board of Directors on 25 February 2014.
In application of art. 264b HGB of the German Commercial
Code (“Handelsgesetzbuch”), the present financial statements
exempt Draka Comteq Berlin Gmbh & Co.KG and Draka Comteq
Germany Gmbh & Co.KG. from the requirement to present
statutory financial statements.
B.
ACCOUNTING POLICIES AND STANDARDS
The main accounting policies and standards used to prepare the consolidated financial statements and Group financial
information are set out below.
Note: all the amounts shown in the tables in the following Notes are expressed in millions of Euro, unless otherwise stated.
