Foreign Exchange and Interest Rate Risk - The company reported a net liability exposure of R$2,097 million under the base scenario for foreign exchange rate risk, which could increase to R$2,598 million in an adverse scenario [1121]. - The net effect of exchange rate fluctuations is projected to be a loss of R$60 million in a probable scenario and R$501 million in an adverse scenario [1121]. - The company has total assets exposed to interest rate fluctuations amounting to R$3,737 million, while liabilities total R$3,508 million, resulting in net assets exposed of R$229 million [1135]. Concession Financial Assets - The company’s concession financial assets related to distribution infrastructure increased from R$1,407 million in 2022 to R$1,920 million in 2023 [1136]. - The concession grant fee, indexed to IPCA, rose from R$2,950 million in 2022 to R$3,031 million in 2023 [1136]. - The company’s total net assets exposed to inflation decreased from R$1,069 million in 2022 to R$182 million in 2023 [1136]. Investment and Risk Management - The company has established a cash investment policy focusing on private credit investment funds and bank CDs, aiming for profitability while managing credit risk [1137]. Governance and Compliance - The company’s audit committee operates under the Sarbanes-Oxley Act and has pre-approval policies for all audit and non-audit services provided by external auditors [1143]. - The company’s disclosure controls and procedures were evaluated as effective by the Executive Board as of December 31, 2023 [1139]. - The company’s code of ethics was revised in 2022 to enhance clarity regarding ethical principles and rules of conduct [1141].
CEMIG(CIG_C) - 2023 Q4 - Annual Report