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22. RELATED-PARTY BALANCES AND TRANSACTIONS
 12 Months Ended
Dec. 31, 2020
Disclosure of transactions between related parties [abstract]  
RELATED-PARTY BALANCES AND TRANSACTIONS
22. RELATED-PARTY BALANCES AND TRANSACTIONS

 

22.a)Transactions with holding companies

 

Vicunha Aços SA is the main shareholder of the Company with a 49.24% interest in the voting capital.

 

Also part of the Company’s control is Rio Iaco Participações SA, which holds a 4.22% interest in the voting capital of CSN.

 

The corporate structure of Vicunha Aços SA is as follows:

 

  - Vicunha Steel S.A. - holds 67.93% interest in Vicunha Aços S.A.;
  - CFL Participações S.A. - holds a 12.82% interest in Vicunha Aços S.A. and a 40% interest in Vicunha Steel S.A.;
  - Rio Purus Participações S.A. - holds a 19.25% interest in Vicunha Aços S.A. and a 60% interest in Vicunha Steel S.A.

 

· Liabilities

 

As of December 31, 2020, the distribution of mandatory minimum dividend in the amount of R$443,694 to the shareholder Vicunha Aços SA and R$37,997 to Rio Iaco Participações SA was proposed, which will be submitted for approval at the Annual Shareholders’ Meeting.

 

22.b) Transactions with subsidiaries, joint ventures, associates, exclusive founds and other related parties

 

    Consolidated
    12/31/2020   12/31/2019
    Subsidiaries and associates   Joint-ventures e Joint Operation   Other related parties   Total   Subsidiaries and associates   Joint-ventures e Joint Operation   Other related parties   Total
Assets                                
 Current Assets                                 
Investments (1)            3,763,603   3,763,603              2,116,560   2,116,560
Trade receivables (note 6) (2)  7,686     8    113,482   121,176     39,435    797    130,356   170,588
Dividends receivable (note 9) (3)        38,088         38,088          44,554         44,554
Other current assets (note 9)         4,413     1,829    6,242               1,830    1,830
     7,686     42,509    3,878,914   3,929,109     39,435     45,351    2,248,746   2,333,532
 Noncurrent Assets                                 
Investments (1)            123,409   123,409             95,719     95,719
Loans (note 9) (4)  3,375   962,675       966,050    1,874   844,426       846,300
Actuarial asset (note 30)             13,819     13,819             13,714     13,714
Other non-current assets (note 9) (5)      664,020       664,020        428,672       428,672
     3,375   1,626,695    137,228   1,767,298    1,874   1,273,098    109,433   1,384,405
      11,061   1,669,204    4,016,142   5,696,407     41,309   1,318,449    2,358,179   3,717,937
                                 
Liabilities                                
 Current Liabilities                                 
Intercompany Loans (note 13)                                25,038     25,038
Trade payables        106,946     9,455   116,401          98,496    142,488   240,984
Accounts payable (note 15)          23,555     2,437     25,992          23,566         23,566
Provision for consumption (note 15)          44,466         44,466          22,497         22,497
         174,967   11,892   186,859        144,559    167,526   312,085
 Noncurrent Liabilities                                 
Accounts payable (note 15)          78,083         78,083          88,021         88,021
Actuarial liability  (note 30)             79,546     79,546             19,788     19,788
           78,083   79,546   157,629          88,021   19,788   107,809
         253,050   91,438   344,488        232,580    187,314   419,894

 

    12/31/2020   12/31/2019   12/31/2018
    Subsidiaries and associates   Joint-ventures e Joint Operation   Other related parties   Total   Subsidiaries and associates   Joint-ventures e Joint Operation   Other related parties   Total   Subsidiaries and associates   Joint-ventures e Joint Operation   Other related parties   Total
P&L                                                
Sales               104,400                      843       1,568,992      1,674,235                 75,630                                    1,047,204      1,122,834               100,608                      414       1,177,730      1,278,751
Cost and expenses                                       (1,036,420)        (104,212)     (1,140,632)             (231,140)          (1,133,142)        (594,676)     (1,958,958)                                       (1,307,695)        (110,587)     (1,418,282)
Financial income (expenses)                                                                   
Interest (note 28)                                              19,095            18,421           37,516                                              43,790            20,499           64,289                      234                 33,911            14,651           48,796
Exchange rate variations and  monetary, net                                                                                                                                                                               3,586             3,586                    13,611           13,611
Financial investments (note 28)                                                                 1,190,489      1,190,489                                                                                                                                                                                         
Other operating income and expenses                                                                                                                                                     (14,939)        (136,004)        (150,943)                                                                                                     -   
                104,400          (1,016,482)       2,673,690      1,761,608             (155,510)          (1,104,291)          340,609        (919,192)               100,842          (1,273,369)       1,095,404          (77,123)

 

Main operations:

 

  1. Financial investments: Investments in Usiminas shares are R$3,305,109 (R$2,114,620 in December 2019) and cash and cash equivalents with Banco Fibra totaling R$458,494 in December 2020 (R$1,940 in December 2019) and no current amount R$123,409 (R$95,719 in December 2019) from Bonds with an average rate of 98% to 115% of the CDI in the consolidated and holds in the parent company through exclusive funds’ investments in government bonds and CDBs in the amount of R$38,517 on December 31, 2020 (R$8,301 on December 31, 2019).

 

  2. Trades receivable: mainly refers to operations of sales of steel products of the Parent Company to affiliates and companies joint venture and joint-operation.

 

  3. Dividends receivable from MRS Logística of R$38,088 (R$44,554 as of December 31, 2019).

 

  4. Loans (Assets): refers mainly to loan agreements with an average rate of 125.0% to 130.0% of the CDI with Transnordestina Logística SA of R$962,675 (R$844,426 as of December 31, 2019).

 

  5. Others (Assets): Advance for future capital increase with subsidiaries of R$664,020 with Transnordestina Logística SA (R$428,672 on December 31, 2019).

 

22.c) Other unconsolidated related parties

 

· CBS Social Security

 

The Company is its main sponsor, being a non-profit civil society established in July 1960 and whose main objective is the payment of benefits complementary to those of the official social security for the participants. As a sponsor, it maintains transactions for payment of contributions and recognition of actuarial liabilities determined in defined benefit plans.

 

· Banco Fibra

 

Banco Fibra is under the control structure of Vicunha Aços S.A., the major shareholder of the Company and the financial transactions carried out with this bank are limited to movements in checking accounts and financial investments in fixed-income securities.

 

· CSN Foundation

 

The Company develops socially responsible policies concentrated in the CSN Foundation, of which it is the founder. Transactions between the parties are related to operational and financial support for the Foundation to conduct social projects developed mainly in the locations where it operates.

 

· Related Parties under the control of a member of the Company’s Management

 

The following companies are under the control of a member of the Management, which maintain some minor transactions with the Company:

 

· Partifib Projetos Imobiliários Ltda
· Vicunha Imóveis Ltda.
· Vicunha Serviços Ltda.
· Ibis Participações e Serviços Ltda

 

22.d) Key management personal

 

The key management personnel with authority and responsibility for planning, directing and controlling the Company’s activities include members of the Board of Directors and statutory officers. The following is information on the compensation of such personnel and the related balances as of December 31, 2020.

 

    P&L
    12/31/2020   12/31/2019   12/31/2018
Short-term benefits for employees and officers                   40,522                   37,452                   32,848
Post-employment benefits                        111                        109                        105
                    40,633                   37,561                   32,953

 

22.e) Guarantees

 

The Company is liable for guarantees of its subsidiaries and joint ventures as follows:

 

  Currency   Maturities   Borrowings Tax foreclosure Others Total
          12/31/2020   12/31/2019   12/31/2020   12/31/2019   12/31/2020   12/31/2019   12/31/2020   12/31/2019
Transnordestina Logísitca R$   Up to 09/19/2056 and Indefinite      2,478,105      2,428,194         35,496         37,406              3,298            8,702         2,516,899         2,474,302
                                       
FTL - Ferrovia Transnordestina R$   Up to 04/01/2021                                  43,118                                                                                                                                43,118
                                       
Cia Metalurgica Prada  R$   Indefinite                                                            196              457                 244               235                   440                   692
                                       
CSN Energia R$   Up to 11/26/2023 and indefinite                                                                              3,141              1,920            1,920                1,920                5,061
                                       
CSN Mineração R$   Up to 12/21/2024         846,749      1,184,048                                                                                                    846,749         1,184,048
                                       
Estanho de Rondônia  R$   7/15/2022             1,154             1,902                                                                                                        1,154                1,902
                                       
Minérios Nacional S.A. R$   Up to 09/10/2021             1,946             4,544                                                                                                        1,946                4,544
                                       
Total in R$            3,327,954      3,661,806         35,692         41,004              5,462          10,857         3,369,108         3,713,667
                                       
CSN Inova Ventures US$   01/28/2028      1,300,000                                                                                                                        1,300,000                          
                                       
CSN Islands XII US$   Perpetual      1,000,000      1,000,000                                                                                                 1,000,000         1,000,000
                                       
CSN Resources US$   Up to 04/17/2026      1,525,000      1,958,603                                                                                                 1,525,000         1,958,603
                                       
Total in US$            3,825,000      2,958,603                                                                                                 3,825,000         2,958,603
                                       
CSN Steel S.L. EUR                                      24,000                                                                                                                                24,000
                                       
Total in EUR                                        24,000                                                                                                                                24,000
Total in R$          19,877,378    12,033,973                                                                                               19,877,378       12,033,973
           23,205,332    15,695,779         35,692         41,004              5,462          10,857       23,246,486       15,747,640

 

Accounting Policy

 

Transactions with related parties were carried out by the Company on terms equivalent to those prevailing in market transactions, observing the price and the usual market conditions. Therefore, these transactions are in conditions that are no less favorable for the Company than those negotiated with third-parties.

 

Transactions between the Parent and its subsidiaries are eliminated and adjusted to ensure consistency with the practices adopted by the Parent.

 

The Company’s related parties are subsidiaries, joint ventures, affiliates, shareholders and their related companies and the key personnel of the Company’s management