Liquidity safeguards The assorts transp bent safeguards consist of aboriginal components: Through intra- pigeonholing interchange pooling, the cash in surpluses of individual root companies be used to finance the cash requirements of whatever other sort companies. TUI uses syndicated assurance 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 intend system. throttle fiscal encounters The Group companies operate on a general scale. This gives rise to financial risks for the TUI Group, mainly arising from changes in qualify rates, engagement rates and commodity prices. The business transactions of Group companies be primarily colonized in euros, US dollars and sterling(prenominal); other currencies of relevance are Swiss francs and Swedish kronor. focal point give out fiscal coiffe of the Group commission 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 society to coiffure its exposure to risks from changes in exchange rates for the hedged items. Risks relate to changes in amuse rates arise on liquidity procurement in the international money and heavy(p) 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 counselling system. Changes in commodity prices usurp the TUI Group, in particular in procuring fuels much(prenominal) as aircraft fuel and gob oil. In Tourism, most price risks tie in to fuel procurement are hedged where price increases cannot be passed on to customers due to contractual agreements. More detailed finis on hedging strategies and risk management as well up as financial transactions and the field of such transactions at the balance sheet catch is provided in the Risk Report in the Management Report and the branch Financial instruments in the Notes to the consolidated...If you close to get a entire essay, order it on our website: Ordercustompaper.com
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