GRUMA, SAB de CVGRUMA, SAB de CV is a public company listed on the New York Stock Exchange (NYES) under the ticker GMK. The headquarters is located in San Pedro Garza Garcia, in the state of Nuevo Leon, Mexico. GRUMA was founded in 1949 and mainly deals with the production of corn flour, tortillas and wheat flour; being one of the world's leading producers of tortillas and corn flour.GRUMA has subsidiaries located in Mexico, United States of America, Central America, Venezuela, Europe, Asia and Oceania; and exports to more than 100 countries around the world. In the United States the company operates 23 factories, in Europe 4 factories, Mexico 22 factories, Asia 3 factories and 12 factories located in Central America. GRUMA's financial performance may be affected by the price and availability of corn, wheat and wheat flour. as each of these raw materials accounted for 38%, 9% and 7% of costs of sales respectively. As of December 31, 2013, the Company had foreign exchange derivative instruments with a nominal amount of US$65 million expiring in January 2014. The purpose of these instruments is to hedge risks related to exchange rate changes on the price of corn, which is named in the United States. dollars. Furthermore, the Company is exposed to a number of financial risks: market risk (including currency risk, interest rate risk and commodity price risk), credit risk and liquidity risk. The group's overall risk management focuses on the unpredictability of financial markets and seeks to minimize potential negative effects on financial performance. The Company uses derivative financial instruments to hedge some of these risks. With respect to foreign currency, the company operates internationally and is exposed to currency risks, particularly with...... middle of paper ...... transactions will be successful or result in Investors receiving, if where appropriate, adequate compensation for their investments subject to the Expropriation Decree. Furthermore, the Company cannot predict the results of any arbitration proceedings, nor the consequences that costly and protracted legal disputes may have on its results of operations or financial condition, nor the likelihood of obtaining a successful arbitration award. The company cannot protect itself from this type of risk, because these situations are beyond its control. Works Cited GRUMA, SAB de CV, SEC form 20-F, Compilation date: 2014-04-30 http://www.sec .gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001053947&owner=exclude&count=40GRUMA , SAB de CV “Consolidated financial statements”. http://www.gruma-en.com/media/341622/annual_report_2012_in_pdf_format.pdfhttp://finance.yahoo.com/q?s=GMK