12 Months Financial Report - Turkish Airlines

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞINOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE PERIOD ENDED 31 DECEMBER, 200938 NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (cont’d)(b) Financial Risk Factors (cont’d)b.1) Credit risk management (cont’d)As of balance sheet date, total amount of cash collateral and letter of guarantee, which is received byGroup for past due not impaired receivable, is TL 3.414.006 (31 December 2008: TL 2.318.741).As of the balance sheet date, Group has no guarantee for past due receivables for which provisions wererecognized.b.2) Liquidity risk managementThe main responsibility of liquidity risk management rests upon Board of Directors. The Board built anappropriate risk management for short, medium and long term funding and liquidity necessities of theGroup management. The Group manages liquidity risk by maintaining adequate reserves, bankingfacilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows andmatching the maturity profiles of financial assets and liabilities.The tables below demonstrate the maturity distribution of nonderivative financial liabilities and areprepared based on the earliest date on which the Group can be required to pay. The interests that will bepaid on the future liabilities are included in the related maturities. The adjustment column shows the itemwhich causes possible cash flow in the future periods. The item in question is included in the maturityanalysis and is not included balance sheet amount of financial liabilities in the balance sheet.Group manages liquidity risk by keeping under control estimated and actual cash flows and bymaintaining adequate funds and borrowing reserves through matching the maturities of financial assetsand liabilities.Liquidity risk table:31 December 2009Due date on the contractBook valueTotal cashoutflowaccording to thecontract(I+II+III+IV)Less than 3months (I) 3-12 months (II) 1-5 years (III)More than 5years (IV)Non-derivativefinancial liabilitiesBank borrowings 28.627.057 29.847.936 7.680.629 7.536.703 14.630.604 -Finance lease obligations 2.959.539.067 3.456.591.636 103.436.047 366.181.926 1.438.363.567 1.548.610.096Trade payables 560.801.478 561.612.148 490.554.785 71.057.363 - -Other financial liabilities 846.771 846.771 846.771 - - -Total 3.549.814.373 4.048.898.491 602.518.232 444.775.992 1.452.994.171 1.548.610.09667