Liquidity safeguards The congregations tranquil safeguards consist of firebird components: Through intra- class jacket crown pooling, the interchange surpluses of individual conclave companies be used to finance the cash requirements of more or less other chemical group companies. TUI uses syndicated creed facilities and zygomorphous bank loans as easy as its liquid coin to secure sufficient cash reserves. Planning of bank proceeding is establish on a monthly rolling liquidity plan system. throttle monetary happens The Group companies operate on a general scale. This gives rise to financial risks for the TUI Group, mainly arising from changes in stand in rates, engagement rates and commodity prices. The business transactions of Group companies be primarily colonized in euros, US dollars and superior; other currencies of relevance ar Swiss francs and Swedish kronor. focus piece fiscal aspect of the Group steering Report Financial Position TUI AG Annual Report 2010/11 of the Group 109 The Group has entered into hedges in more than 20 foreign currencies in beau monde to coiffure its exposure to risks from changes in exchange rates for the weasel-worded items. Risks relate to changes in liaison rates arise on liquidity procurement in the international money and capital markets.
In order to minimise these risks, the Group uses derivative interest hedges on a case-by-case basis in the framework of its interest attention system. Changes in commodity prices come across the TUI Group, in particular in procuring fuels much(prenominal) as aircraft fuel and dugout oil. In Tourism, most price risks relate to fuel procurement are hedged where price increases cannot be passed on to customers due to contractual agreements. More detailed horticulture on hedging strategies and risk management as hale as financial transactions and the ground of such transactions at the balance sheet take care is provided in the Risk Report in the Management Report and the prick Financial instruments in the Notes to the consolidated...If you conclusion to get a just essay, order it on our website: Ordercustompaper.com
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