Financial resources management

The Group has the ability to pay its contracted liabilities. During the reporting period, no threats to the maintenance of liquidity were identified. In order to efficiently manage its financial resources, the Group prepares short-term and long-term cash flow forecasts with the help of which it controls proceeds and expenditures, including also capital expenditures.

In order to ensure current liquidity, the Group uses current account overdrafts which are repaid from current proceeds, and any generated cash surpluses are invested in bank deposits with different maturities. The Group uses a broad range of banking products through which it effectively manages its cash while minimizing transaction risk.

Credit exposure to banks is mitigated through diversification of invested funds in accordance with the internal procedures, as described in Note 3.1 to the Consolidated Financial Statements of the Jastrzębska Spółka Węglowa S.A. Capital Group for the financial year ended 31 December 2012.