Ryanair 2008 Annual Report Download - page 64

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64
11 Financial instruments and financial risk management
The Group utilises financial instruments to reduce exposures to market risks throughout its business.
Borrowings, cash and cash equivalents and liquid investments are used to finance the Group’s operations.
Derivative financial instruments are contractual agreements with a value which reflects price movements in
an underlying asset. The Group uses derivative financial instruments, principally jet fuel derivatives, interest
rate swaps and forward foreign exchange contracts to manage commodity risks, interest rate risks, currency
exposures and achieve the desired profile of borrowings and leases. It is the Group’s policy that no
speculative trading in financial instruments shall take place.
The main risks attaching to the Group’s financial instruments, the Group’s strategy and approach to
managing these risks, and the details of the derivatives employed to hedge against these risks have been
given in note 5.
(a) Financial assets and financial liabilities
The carrying value and fair value of the Group’s financial assets by class and category were as follows:
Total Total
Available
Cash Flow Fair Value Loans & Carrying Fair
For Sale Hedges Hedges Receivables
Value Value
1000 1000 1000 1000 1000 1000
At March 31, 2008
Available for sale financial assets
.......................
311,462 - - - 311,462 311,462
Cash and cash equivalents................................
...
- - - 1,470,849 1,470,849 1,470,849
Financial asset: cash > 3 months
.........................
- - - 406,274 406,274 406,274
Restricted cash................................
....................
- - - 292,431 292,431 292,431
Derivative financial instruments
- FX on aircraft purchase firm commitments
......
- - 27,252 - 27,252 27,252
- U.S. Dollar currency forward contracts
............
- 4,213 - - 4,213 4,213
- Jet fuel derivative contracts
..............................
- 6,015 - - 6,015 6,015
Trade receivables ................................
................
- - - 34,178 34,178 34,178
Total financial assets at March 31, 2008… 311,462 10,228 27,252 2,203,732 2,552,674 2,552,674
At March 31, 2007
Available for sale financial assets
.......................
406,075 - - - 406,075 406,075
Cash and cash equivalents................................
...
- - - 1,346,419 1,346,419 1,346,419
Financial asset: cash > 3 months
.........................
- - - 592,774 592,774 592,774
Restricted cash................................
....................
- - - 258,808 258,808 258,808
Derivative financial instruments
- FX on aircraft purchase firm commitments
......
- - 17,452 - 17,452 17,452
- Jet fuel derivative contracts
..............................
- 52,736 - - 52,736 52,736
Trade receivables ................................
................
- - - 23,412 23,412 23,412
Total financial assets at March 31, 2007
.............
406,075 52,736 17,452 2,221,413 2,697,676 2,697,676