Creative 2010 Annual Report Download - page 57

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57
CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
Group
2010 2009
US$’000 US$’000
Past due 1 to 60 days 3,067 7,715
Past due 61 to 120 days 1,451 3,438
Past due over 120 days 4,882 5,949
9,400 17,102
The carrying amount of trade receivables individually determined to be impaired and the movements in the related allowance
for impairment are as follows:
Group
2010 2009
US$’000 US$’000
Past due 1 to 60 days 520 281
Past due 61 to 120 days 210 303
Past due over 120 days 4,608 4,976
5,338 5,560
Less: Allowance for impairment (5,300) (5,379)
38 181
Beginning of nancial year 5,379 4,513
Currency translation dierences 17 18
Acquisition of subsidiaries – 35
Liquidation/disposal of subsidiaries (317) –
Allowance made (Note 4) 273 2,460
Allowance utilised (52) (1,647)
End of nancial year 5,300 5,379
The impaired trade receivables arose mainly from sales to customers who signicantly delayed their payments.
(c) Liquidity risk
To manage liquidity risk, the Group monitors its net operating cash ows and maintains an adequate level of cash and cash
equivalents and secured committed funding facilities from nancial institutions. In assessing the adequacy of these funding
facilities, management reviews its working capital requirements regularly.
As at 30 June 2010 and 30 June 2009, the Group’s nancial liabilities mature in less than 1 year’s time.
(d) Capital risk
The Group’s objectives when managing capital, which the Group denes as total equity, are to safeguard the Group’s ability
to continue as a going concern and to maintain an optimal capital structure so as to maximise shareholder value. In order
to maintain or achieve an optimal capital structure, the Group may adjust the amount of dividend payment, return capital to
shareholders, issue new shares, buy back issued shares or obtain new borrowings.
As at 30 June 2010, the Group does not have any outstanding bank borrowings and the Group is not subject to any externally
imposed capital requirements.
The age analysis of trade receivables past due but not impaired is as follows: