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31. FINANCIAL RISK MANAGEMENT
(a) Capital risk management
Capital risk management of the Group aims to maximize the profitability through the optimization of the debt and equity balance, while maintaining the continuity of its business
operations.
The capital structure of the Group includes of issued capital, reserves and equity items consisting of retained earnings disclosed in Notes 19 and 20, respectively.
The Group’s cost of capital and capital risks associated with each capital item are assessed by the Board of Directors and the Management of the Holding. Decisions on the dividend
payments or capital increase are made based on those assessments and the Holding aims at balancing its capital structure by borrowing loans or settling its debt amounts.
The Group’s overall strategy is determined in accordance with the financial risk management application framework issued on 22 October 2010.
(b) Significant accounting policies
The details of the Group’s significant accounting policies in respect of financial instruments are disclosed in Note 3 “Summary of significant accounting policies” to the financial
statements.
The carrying value of the financial instruments listed above approximates their fair values as of 31 December 2014.
Categories of financial instruments
Financial Assets
Cash and cash equivalents
445,437,890
-
-
-
445,437,890
6
Trade receivables
524,589,777
-
-
-
524,589,777
7
Other assets
154,146,336
-
-
-
154,146,336
9
Available for sale investments
-
4,160,262
-
-
4,160,262
1,124,174,003
4,160,262
-
-
1,128,334,265
Financial Liabilities
Borrowings
-
-
1,609,379,113
- 1,609,379,113
14, 15
Trade payables
-
-
752,975,276
-
752,975,276
13
Other payables
-
-
6,022,970
-
6,022,970
16
Derivative financial liabilities
-
-
-
616,534
616,534
16
-
-
2,368,377,359
616,534
2,368,993,893
Note
31 December 2014
Balance Sheet
Loans and receivables
(including cash and
cash equivalents)
Available for
sale investments
Financial liabilities at
amortized cost
Derivative financial
instruments
Total
BORUSAN HOLDING A.Ş. AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2014
(Currency - US Dollars (“USD”) unless otherwise indicated)