Management Report 2020
Management Report 2020
final rating of the initial operation was "[brAA-] ", And on February 24, 2021, the
risk of the operation was raised to" [brAA]".
The CRA operations foresee the fulfillment of financial commitments (Covenants) on the
base dates of each fiscal year applicable to the Company, as follows:
(i) Current liquidity ratio (CA/CL): current assets divided by the consolidated current
liabilities, equal to or greater than 0.9x (zero point nine time);
(ii) Total consolidated liabilities/tangible shareholders' equity: total liabilities divided
by shareholders' equity minus intangible assets, equal to or less than 2.5x (two
comma five times);
(iii) Consolidated net leverage (total consolidated net financial debt/EBITDA): total
loans and financing, minus cash position, banks and "cash equivalents", minus
financial investments plus or minus bound swaps, divided by operating income
before financial income (expense), equity in subsidiaries, depreciation and amor-
tization for the last 12 (twelve) months excluding the effects of biological assets,
equal to or less than 4.0x (four times).
Failure to comply with the contractual clauses of financial commitments may result in
early maturity of loans and financing.
As of December 31, 2020, the date of the last annual measurement, the Company was
in compliance with the financial commitment clauses.
The maturities of short- and long-term loans and financing are as follows:
Years of maturity
2020
2021
2022
2023
2024
After 2024
SLC Agrícola
19. Provisions for tax, environmental, labor and civil
risks
The Company records provisions when the Management, based on the opinion of
its legal advisors, understands that there are probabilities of probable losses and
that they are sufficient to cover eventual losses with legal and administrative pro-
ceedings that arise in the normal course of its business.
The provisions are reviewed and adjusted to take into account changes in circum-
stances, such as applicable statute of limitations, tax inspection findings or addi-
tional exposures identified based on new matters or court decisions.
a) Provisions
The Company records provisions for civil, labor and environmental lawsuits classified
as probable loss, which presented the following movement:
Balance in 12/31/2019
Addition of provision
Reverse of provision
Parent Company
Labor
Environ-
mental
Tributary
Civil
Total
1,475
330
2,003
3,808
519
1,052
1,571
(255)
Balance in 12/31/2020
1,739
330
1,052
(1,600)
403
(1,855)
3,524
Consolidated
Consolidated
Labor
12/31/2020 12/31/2019
12/31/2020 12/31/2019
Environ-
mental
Tributary
Civil
Total
623,874
699,515
Balance in 12/31/2019
297,692
347,516
377,547
425,294
Addition of provision
1,788
544
330
2,003
4,121
919,646
447,794
1,161,958
584,556
Reverse of provision
345,625
125,967
382,750
130,586
Balance in 12/31/2020
(349)
1,983
330
7,310
(6,187)
1,123
7,854
(10)
(6,546)
1,993
5,429
238,683
4,086
242,028
7,426
249,102
8,490
253,000
2,050,748
1,557,727
2,417,283
12,389
1,859,766
b) Contingents liabilities
Parent Company
The Group's exposure to liquidity risk is disclosed in note 25.
Based on the nature of the actions in which it is involved, and supported by the
opinion of its legal advisors, the Company discloses its contingent liabilities for
which it has an expectation of possible loss. For these actions, no provisions were
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