Creative 2015 Annual Report Download - page 39

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39
CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
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. 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 had
been repaid to date. The balance amount remained outstanding as at 30 June 2015. 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$12,762,000 may not be recoverable and the Company has provided
for this amount since the nancial year ended 30 June 2009.
The other receivables from associated companies and non-related parties are unsecured, interest-free and repayable on
demand.
16. FINANCIAL ASSETS, AVAILABLE-FOR-SALE
Group Company
2015 2014 2015 2014
US$’000 US$’000 US$’000 US$’000
Beginning of nancial year 21,608 22,654 – –
Fair value gains recognised in other
comprehensive income 11,571 411 – –
Addions 1,900 250 – –
Disposals (12,115) (735) – –
Impairment losses (Note 8) (4,725) (972) – –
End of nancial year 18,239 21,608 – –
15. OTHER CURRENT ASSETS
Group Company
2015 2014 2015 2014
US$’000 US$’000 US$’000 US$’000
Prepaid expenses and security deposits 826 709 276 127
Prepaid non-income taxes 221 701 – –
Other receivables from associated companies 30 24 30 24
Other receivables from non-related pares 243 462 116 36
Loan to non-related party 12,762 12,762 12,762 12,762
14,082 14,658 13,184 12,949
Less: Allowance for impairment of
loan to non-related party (12,762) (12,762) (12,762) (12,762)
1,320 1,896 422 187