Creative 2015 Annual Report Download - page 55

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55
CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
Group
2014
Financial assets
Cash and cash equivalents 28,510 65,017 20,208 4,433 6,470 124,638
Financial assets, available-for-sale 13,495 8,113 – – – 21,608
Trade receivables 6,407 657 2,434 254 807 10,559
Other receivables 274 97 2 1 112 486
Other nancial assets - deposits 87 232 66 28 67 480
Receivables from subsidiaries 452,465 39,257 8,420 142 983 501,267
501,238 113,373 31,130 4,858 8,439 659,038
Financial liabilies
Financial liabilies (31,761) (8,624) (6,091) (117) (689) (47,282)
Payables to subsidiaries (452,465) (39,257) (8,420) (142) (983) (501,267)
(484,226) (47,881) (14,511) (259) (1,672) (548,549)
Net nancial assets 17,012 65,492 16,619 4,599 6,767 110,489
A change of 10% in foreign currency exchange rates relative to US$ at the reporting date would increase/(decrease) prot
(loss) before tax by the amounts shown below. This analysis assumes that all other variables remain constant.
10% weakened
Other
Prot and comprehensive
loss income
US$’000 US$’000
Group
2015
SGD against USD (2,675) (1,077)
EUR against USD (1,058) –
GBP against USD (404) –
Others against USD (623) –
2014
SGD against USD (5,738) (811)
EUR against USD (1,662) –
GBP against USD (460) –
Others against USD (677) –
USD SGD EUR GBP Others Total
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
10% strengthened
Other
Prot and comprehensive
loss income
US$’000 US$’000
2,675 1,077
1,058 –
404 –
623 –
5,738 811
1,662 –
460 –
677 –
(b) Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in nancial loss to the
Group. Financial instruments that potentially subject the Group to signicant concentrations of credit risk consist principally
of cash and cash equivalents and trade receivables. The Group deals only with nancial institutions with high credit ratings
and limits the amount of credit exposure to any one nancial institution. The Group sells its products to original equipment
manufacturers, distributors and key retailers. The Group believes that the concentration of credit risk in its trade receivables
is substantially mitigated due to performance of ongoing credit evaluations of its customers’ nancial condition, use of short
collection terms, use of letters of credit in certain circumstances, procurement of credit insurance coverage and the geographical
dispersion of sales. The Group establishes allowances for doubtful accounts, returns and discounts for specically identied
doubtful accounts, returns and discounts based on credit proles of its customers, current economic trends, contractual terms
and conditions and historical payment, returns and discount experience.