Creative 2009 Annual Report Download - page 36

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36
CREATIVE฀TECHNOLOGY฀LTD฀AND฀ITS฀SUBSIDIARIES
13. INVENTORIES
฀Group฀ Company
฀ ฀ 2009฀ 2008฀ 2009฀ 2008฀
฀ US$’000฀ US$’000฀ US$’000฀ US$’000
฀
฀ Raw฀materials฀ 13,486฀ 50,749฀ 9,808฀ 40,798
฀ Work-in-progress฀ 273฀ 84฀ 264฀ 51
฀ Finished฀products฀ 23,841฀ 48,955฀ 8,032฀ 18,434
฀ ฀ 37,600฀ 99,788฀ 18,104฀ 59,283
14. OTHER CURRENT ASSETS
฀Group฀ Company
฀ ฀ 2009฀ 2008฀ 2009฀ 2008฀
฀ US$’000฀ US$’000฀ US$’000฀ US$’000
฀
฀ Prepaid฀expenses฀and฀security฀deposits฀ 14,726฀ 13,787฀ 1,852฀ 2,059
฀ Prepaid฀non-income฀taxes฀ 2,484฀ 7,491฀ 701฀ 1,827
฀ Other฀receivables฀from฀associated฀companies฀ 886฀ 9,854฀ 413฀ 7,510
฀ Other฀receivables฀from฀non-related฀parties฀ 3,352฀ 12,894฀ 1,968฀ 834
฀ Loan฀to฀non-related฀party฀ 8,508฀ 6,127฀ 8,508฀ 6,127
฀ ฀ 29,956฀ 50,153฀ 13,442฀ 18,357
฀ Less:฀Allowance฀for฀impairment฀of฀
฀ loan฀to฀non-related฀party฀(Note฀7)฀ (8,508)฀ –฀ (8,508)฀ –
฀ ฀ 21,448฀ 50,153฀ 4,934฀ 18,357
In July 2007, the Company divested 80.1% of its interest in its then wholly owned manufacturing subsidiary in Malaysia
(“ex-subsidiary”). Prior to divestment date, the Company had made loans to the ex-subsidiary for the purchase of properties,
construction of factory and working capital purposes amounting to approximately US$36,900,000 (Malaysia Ringgit (“RM”)
130 million). Under the terms of the divestment agreement, this amount would be repaid in various instalments up to 1 June
2011 of which US$24,100,000 (RM85 million) had been repaid to date. Of the outstanding balance of US$12,762,000 (RM45
million), US$4,254,000 (RM15 million) was due on 1 June 2009 but the ex-subsidiary had failed to repay this amount on
due date. Out of the remaining balance of US$8,508,000, US$4,254,000 was due on 1 June 2010 and US$4,254,000 was
due on 1 June 2011. Subsequent to the financial year end, the Company was informed that the ex-subsidiary had decided
to end all manufacturing business shortly in view of its unfavourable business and financial situation.
In view of the above, the total outstanding balance of US$12,762,000 (RM45 million) potentially may not be recoverable
and the Company has considered it appropriate to provide for this amount in its financial year ended 30 June 2009.
The other receivables from associated companies and non-related parties are unsecured, interest-free and repayable on
demand.
NOTES TO THE FINANCIAL STATEMENTS
– For the financial year ended 30 June 2009
AR09 pg1-64_Final.indd 36 10/2/2009 10:38:09 AM