HTC 2010 Annual Report Download - page 72

Download and view the complete annual report

Please find page 72 of the 2010 HTC annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 101

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101

142 2 0 1 0 H T C A N N U A L R E P O R T 143
FINANCIAL INFORMATION
As of December 31, 2009 and 2010, financial assets exposed
to fair value interest rate risk amounted to NT$0 thousand
and NT$207,946 thousand (US$7,139 thousand), respectively;
financial assets exposed to cash flow interest rate risk
amounted to NT$61,177,848 thousand and NT$50,853,665
thousand (US$1,745,749 thousand), respectively.
Financial Risks
a. Market risk
The Company uses derivative contracts for hedging purposes,
i.e., to reduce any adverse eect of exchange rate fluctuations
of accounts receivable/payable. The gains or losses on these
contracts almost oset the gains or losses on the hedged
items. Thus, market risk is not material.
b. Credit risk
The Company deals only with banks with good credit standing
based on the banks’ reputation and takes into account past
experience with them. Moreover, the Company has a series of
control procedures for derivative transactions. Management
believes its exposure to counter-parties’ default on contracts is
low.
c. Cash flow risk
The Company’s operating funds are deemed sucient to meet
the cash flow demand, therefore, liquidity risk is not considered
to be significant.
24. RELATED-PARTY TRANSACTIONS
The names and relationships of related parties are as follows:
Related Party Relationship with the Company
Xander International Corp. Chairperson is an immediate relative of the Company’s chairperson
VIA Technologies, Inc. Same chairperson
Chander Electronics Corp. Same chairperson
Comserve Network Netherlands B.V. Main director is an immediate relative of the Company’s chairperson
Syuda Construction Company
The only juridical stockholder whose chairperson is the same person with the Company at
the transaction date
H.T.C. (B.V.I.) Corp. Subsidiary
BandRich Inc. Originally a subsidiary of the Company until July 2010 because of losing significant influence
Communication Global Certification Inc. Subsidiary
High Tech Computer Asia Pacific Pte. Ltd. Subsidiary
HTC Holding Cooperatief U.A. Subsidiary
HTC. Netherlands B.V. Subsidiary of HTC Holding Cooperatief U.A.
HTC Europe Co., Ltd. Subsidiary of HTC. Netherlands B.V.
HTC America Holding Inc. Subsidiary of HTC Europe Co., Ltd.
HTC America Inc. Subsidiary of HTC America Holding, Inc.
High Tech Computer Corp. (Suzhou) Subsidiary of H.T.C. (B.V.I.) Corp.
HTC Nippon Corporation Subsidiary of HTC. Netherlands B.V.
HTC Brasil Subsidiary of HTC. Netherlands B.V.
Exedea Inc. Subsidiary of H.T.C. (B.V.I.) Corp.
HTC Corporation (Shanghai WGQ) Subsidiary of HTC HK, Limited.
HTC Belgium BVBA/SPRL Subsidiary of HTC. Netherlands B.V.
Related Party Relationship with the Company
High Tech Computer Singapore Pte. Ltd. (Merged
into High Tech Computer Asia Pacific Pte. Ltd. in
February 2010) Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
High Tech Computer (H.K.) Limited Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
HTC (Australia and New Zealand) Pty. Ltd. Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
HTC India Private Limited Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
HTC (Thailand) Limited Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
HTC Electronics (Shanghai) Subsidiary of HTC HK, Limited.
HTC Malaysia Sdn. Bhd. Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
HTC Innovation Limited Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
One & Company Design Inc. Subsidiary of HTC America Holding, Inc.
HTC France Corporation Subsidiary of HTC. Netherlands B.V.
HTC South Eastern Europe Limited liability Company Subsidiary of HTC. Netherlands B.V.
Abaxia SAS Subsidiary of HTC France Corporation
HTC Nordic ApS. Subsidiary of HTC. Netherlands B.V.
HTC America Innovation Inc. Subsidiary of HTC America Holding, Inc.
HTC Communication Co., Ltd. Subsidiary of High Tech Computer Asia Pacific Pte. Ltd.
Employees’ Welfare Committee Employees’ Welfare Committee of HTC Corporation
HTC Cultural and Educational Foundation
A non-profit organization of which the funds donated from the Company exceeds one third
of the non-profit organization’s total funds
Major transactions with related parties are summarized below:
Purchases of Inventories and Services
2009 2010
Related Party Amount
% to Total Net
Purchases Amount
% to Total Net
Purchases
NT$ NT$ US$ (Note 3)
HTC Electronics (Shanghai) $ 78,835 - $ 298,526 $ 10,248 -
Chander Electronics Corp. 28,606 - 270,931 9,301 -
High Tech Computer Corp. (Suzhou) 32,361 - 39,876 1,369 -
BandRich Inc. 41,318 - - - -
$ 181,120 - $ 609,333 $ 20,918 -
Terms of payment and purchasing prices for both related and third parties were similar.