Creative 2014 Annual Report Download - page 39

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39
CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
14. OTHER CURRENT ASSETS
Group Company
2014 2013 2014 2013
US$’000 US$’000 US$’000 US$’000
Prepaid expenses and security deposits 709 833 127 360
Prepaid non-income taxes 701 789 – 90
Other receivables from associated companies 24 35 24 35
Other receivables from non-related pares 462 521 36 171
Loan to non-related party 12,762 12,762 12,762 12,762
14,658 14,940 12,949 13,418
Less: Allowance for impairment of
loan to non-related party (12,762) (12,762) (12,762) (12,762)
1,896 2,178 187 656
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. The balance amount remained outstanding as
at 30 June 2014. Subsequent to the nancial year ended 30 June 2009, the Company was informed that the ex-subsidiary
had decided to end all manufacturing business with the Company in view of the ex-subsidiary’s unfavourable business and
nancial situation. The ex-subsidiary is currently in the process of liquidation.
In view of the above, the total outstanding balance of US$12,762,000 (RM45 million) may not be recoverable and the
Company has provided for this amount since the nancial year ended 30 June 2009.
The other receivables from associated companies and non-related parties are unsecured, interest-free and repayable on
demand.
15. FINANCIAL ASSETS, AVAILABLE-FOR-SALE
Group Company
2014 2013 2014 2013
US$’000 US$’000 US$’000 US$’000
Beginning of nancial year 22,654 26,651 – –
Fair value gains (losses) recognised in other
comprehensive income 411 827 – –
Addions 250 1,000 – –
Disposals (735) (3,536) – –
Impairment losses (Note 7) (972) (2,288) – –
End of nancial year 21,608 22,654 – –