Annual Report Gorenje Group 2009

COMPANY - CURRENT FINANCIAL LIABILITIES
Note 31 – Current financial liabilities
136,792 TEUR
in TEUR 2009 2008
Short-term borrowings from banks 42,100 71,029
Short-term borrowings from related companies 21,872 18,132
Current interest payable 352 840
Current dividends payable 175 176
Current portion of non-current financial liabilities 59,026 62,008
Other current financial liabilities 13,267 10,542
Total 136,792 162,727
Other current financial liabilities include liabilities from derivatives used to hedge liabilities in amount of
TEUR 10,267 and capital increase of Gorenje Tiki, d.o.o., Serbia, not yet paid up.
As at 31 December 2009, forward exchange contracts were concluded for the total value of hedged
items in the amount of TEUR 8,580. The forward exchange contracts were used in the financial year
2009 to hedge against the change in foreign exchange rates: EUR/PLN, EUR/AUD, EUR/USD,
EUR/HRK, EUR/HUF, EUR/GBP, and EUR/RSD. At the year end, hedging of the following foreign
exchange rates was recorded: EUR/USD and EUR/HUF. Maturities of forward contracts are short (up
to one year).
The total value of hedged items as at 31 December 2009, for which interest rate swap contracts were
concluded, amounted to TEUR 106,071. The interest rate swap contracts are used to hedge against
the fluctuation of the variable interest rate EURIBOR. Maturities of interest rate swap contracts are
long, i.e. progressively until 31 January 2012.
Collateralisation of current financial liabilities
in TEUR 2009 2008
Bills 101,126 131,965
Pari-Passu Clause, Negative Pledge Clause 95,558 80,554
Financial covenants (ratios) 65,627 62,003
A significant portion of borrowings is collateralised by blank bills, financial covenants, and the Pari-
Passu and Negative Pledge clauses, as stipulated in individual contracts. Some borrowings are
simultaneously secured by several types of collaterals.
The loan contracts concluded with the banks include financial covenants, which were breached in the
financial year 2009 due to the aggravated macroeconomic situation and the consequent drop in sales.
The covenants are reviewed on the basis of the audited consolidated financial statements for the
respective financial year.
Because of the anticipated breach of financial covenants, the Company contacted its banks at the year
end 2009 requesting for waiver of the financial covenants in the 2009 financial statements. The
Company received the approval of waiver request from all its banks for all its borrowing and guarantee
deals secured by financial covenants. The waiver of financial covenants is effective and valid for the
2009 financial year.
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Annual Report Gorenje Group 2009