16. Trade accounts payable and others

The Company offers strategic suppliers reverse factoring financing options (risco sacado) with financial institutions in order to optimize their liquidity and manage commitments with suppliers. Under these arrangements, the supplier has the option to assign the right to receive the related invoices to a designated financial institution the right to receive the related invoices, in exchange for an advance. The financial institution then becomes the creditor of the transaction. The transfer of the Company’s obligations to the financial institution, at the supplier’s discretion, does not affect the Company’s payment term nor does it generate financial costs to the Company which are borne by the supplier.

During the period, the Company transacted R$ 6,236 on supplier finance arrangements transactions, with an average payment term of 232 days. This average payment term is similar for suppliers who do not choose to advance their receivables through the arrangement known as Trade accounts payable – supplier finance arrangements.

16.1 Taxes Payable