Creative 2015 Annual Report Download - page 54

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54
CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the nancial year ended 30 June 2015
Equity
10% increase 10% decrease
US$’000 US$’000
Group
2015
Quoted equity securies 1,085 (1,085)
2014
Quoted equity securies 1,367 (1,367)
(ii) Interest rate risk
The Group has balances placed with reputable banks and nancial institutions. The Group manages its interest rate risks
on its interest income by placing the cash balances in varying maturities and interest rate terms with due consideration to
operating cash ow requirements and optimising yield.
(iii) Currency risk
The functional currency of the companies in the Group is predominantly the US dollar and accordingly, gains and losses
resulting from the translation of nancial assets and liabilities denominated in currencies other than the US dollar are
reected in the determination of net prot (loss). From time to time, the Group enters into forward exchange contracts to
reduce its exposure to currency translation gains and losses. Forward exchange contracts are marked to market each period
and the resulting gains and losses are included in the determination of net prot (loss). No forward exchange contracts were
outstanding as at 30 June 2015 and 30 June 2014.
USD SGD EUR GBP Others Total
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Group
2015
Financial assets
Cash and cash equivalents 44,555 32,987 12,307 3,903 5,916 99,668
Financial assets, available-for-sale 7,465 10,774 – – – 18,239
Trade receivables 5,508 613 2,830 190 641 9,782
Other receivables 92 115 33 – 33 273
Other nancial assets - deposits 87 218 66 26 81 478
Receivables from subsidiaries 446,363 32,068 6,530 244 1,275 486,480
504,070 76,775 21,766 4,363 7,946 614,920
Financial liabilies
Financial liabilies (34,734) (7,186) (4,652) (75) (437) (47,084)
Payables to subsidiaries (446,363) (32,068) (6,530) (244) (1,275) (486,480)
(481,097) (39,254) (11,182) (319) (1,712) (533,564)
Net nancial assets 22,973 37,521 10,584 4,044 6,234 81,356
The Group’s currency exposure is as follows:
monitoring of the performance of investments held and assessing market risk relevant to which the investments operate.
The market value of these investments will uctuate with market conditions. The table below summarises the impact to
the Group’s fair value reserve in equity arising as a result of a 10% increase/decrease in prices of quoted equity securities.
This analysis assumes that all other variables remain constant.
30. FINANCIAL RISK MANAGEMENT (cont’d)
(a) Market risk (cont’d)
(i) Price risk (cont’d)
Prot and comprehensive