Management Report 2020 slide image

Management Report 2020

- .... Management Report 2020 SLC Agrícola f) Credit risk A substantial portion of the sales of the Company and its subsidiaries is made to select and highly qualified clients: trading companies and weaving mills among others that usually acquire large volumes to guarantee local and international trading. Credit risk is managed by specific customer acceptance rules, credit analysis and setting exposure limits per customer. Historically, the Company and its subsidiaries have not recorded significant losses on trade accounts receivable. Depending on the above, the credit risk assumed is not relevant. The Company considers the balance of accounts receivable from customers as exposed to this risk. At December 31, 2020, the balance is R$ 178,085 in the Parent Company and R$ 207,283 in the consolidated (R$ 137,114 in the Parent Company and R$ 178,405 in the consolidated at December 31, 2019). g) Liquidity risk The gross outflows, disclosed below, represent the contractual undiscounted cash flows related to derivative and non-derivative financial liabilities held for risk manage- ment purposes and that are not normally closed before the contractual maturity. The table presents net cash flows for cash derivatives settled by net exposure and gross cash outflows for derivatives that have simultaneous gross settlement. December 31, 2020 FINANCIAL LIABILITIES Non Derivatives Loans and financing Suppliers Lease liabilities Book value Parent Company Contractual cash flow Up to 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years Over 5 years 2,050,748 2,241,448 933,146 2,615,382 933,146 307,448 933,146 1,076,946 539,566 150,788 156,091 10,609 4,518,178 373,173 368,208 363,507 339,393 5,599,276 7,692,772 1,613,767 1,445,154 903,073 490,181 330,710 486,801 2,743,187 2,753,796 Derivatives Operations with Derivatives 167,360 (167,360) (228,521) 20,571 (3,912) 14,288 30,214 167,360 (167,360) (228,521) 20,571 5,766,636 7,525,412 1,385,246 1,465,725 (3,912) 899,161 14,288 504,469 30,214 517,015 2,753,796 Consolidated December 31, 2020 Book value Contractual cash flow Up to 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years Over 5 years FINANCIAL LIABILITIES Non Derivatives Loans and financing 1,326,729 Suppliers Securities payable Lease liabilities Derivatives Operations with Derivatives 4,466,315 171,749 2,417,283 2,622,249 1,101,769 1,101,769 388,630 1,101,769 12,979 934,284 12,979 1,353,255 12,273 167,950 5,090,252 1,670,622 706 161,396 1,488,831 156,185 130,314 110,445 736,391 285,410 267,885 626,965 641,113 (171,749) (260,383) 171,749 4,638,064 (171,749) 4,918,503 (260,383) 1,410,239 48,043 48,043 1,536,874 (3,912) 14,288 30,215 (3,912) 14,288 30,215 732,479 299,698 298,100 641,113 580,206 155,096 157,440 14,148 Cash flows included in the maturity analysis are not expected to occur significantly earlier or at different values. On February 23, 2021, the company S&P Global Ratings published a new corporate rating of the Company, classifying it as "[br AA]" in the national scale category (Brazil). 136
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