HTC 2013 Annual Report Download - page 151

FINANCIAL INFORMATION FINANCIAL INFORMATION
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sufficient collateral, where appropriate, as a means
of mitigating the risk of financial loss from defaults.
The credit risk information of trade receivables are
disclosed in the Note 13.
c. Liquidity risk
The Company manages liquidity risk to ensure
that the Company possesses sufficient financial
flexibility by maintaining adequate reserves
of cash and cash equivalents and reserve
financing facilities, and also monitor liquidity
risk of shortage of funds by the maturity date of
financial instruments and financial assets.
1) Liquidity risk tables
The following tables detail the Company's
remaining contractual maturity for its
derivative financial liabilities and non-
derivative financial liabilities with agreed
repayment periods. The tables had been
drawn up based on the undiscounted cash
flows of financial liabilities from the earliest
date on which the Company can be required
to pay. The tables included both interest and
principal cash flows.
December 31, 2013
Less Than
3 Months
3 to 12
Months Over 1 Year
Non-derivative
financial liabilities
Note and trade
payables
$13,087,630 $33,188,221 $-
Other payables 14,813,806 23,219,193 -
Other current
liabilities
74,952 184,577 -
Guarantee
deposits received
- - 256,415
$27,976,388 $56,591,991 $256,415
December 31, 2012
Less Than
3 Months
3 to 12
Months Over 1 Year
Non-derivative
financial liabilities
Note and trade
payables
$25,172,364 $48,445,833 $-
Other payables 16,036,617 23,230,556 -
Other current
liabilities
270,073 31,795 -
Guarantee
deposits received
- - 59,999
$41,479,054 $71,708,184 $59,999
January 1, 2012
Less Than
3 Months
3 to 12
Months Over 1 Year
Non-derivative
financial liabilities
Note and trade
payables
$33,234,316 $45,238,814 $-
Other payables 15,945,336 31,650,455 -
Other current
liabilities
274,995 165,867 -
Guarantee
deposits received
- - 42,946
$49,454,647 $77,055,136 $42,946
2) Bank credit limit
December
31, 2013
December
31, 2012
January 1,
2012
Unsecured bank
general credit limit
Amount used $1,697,088 $1,572,461 $1,892,407
Amount
unused
45,647,802 45,104,312 10,899,663
$47,344,890 $46,676,773 $12,792,070
33. RELATED-PARTY
TRANSACTIONS
Transactions, account balances and revenue
and expense between the Company and its
subsidiaries, which were related parties of the
Company, had been eliminated on consolidation
and are not disclosed in this note. Details of
transactions between the Company and other
related parties were as follows:
Sales
For the Year Ended
December 31
2013 2012
Key management personnel $2,002 $-
Other related parties - Employees'
Welfare Committee
23,454 220,037
Other related parties - other
related parties' chairperson or its
significant stockholder, is HTC's
chairperson
12,439 2,242,971
$37,895 $2,463,008
The following balances of trade receivables from
related parties were outstanding at the end of the
reporting period:
December
31, 2013
December
31, 2012
January 1,
2012
Other related
parties - other
related parties'
chairperson or
its significant
stockholder,
is HTC's
chairperson
$1,309 $221,050 $473
The selling prices for products sold to related
parties were lower than those sold to third parties,
except some related parties have no comparison
with those sold to third parties. No guarantees
had been given or received for trade receivables
from related parties. No bad debt expense had
been recognized for the years ended December
31, 2013 and 2012 for the amounts owed by related
parties.
Purchase
For the Year Ended December
31
2013 2012
Other related parties - other
related parties' chairperson or
its significant stockholder, is
HTC's chairperson
$62,030 $63,675
The following balances of trade payables from
related parties were outstanding at the end of the
reporting period:
December
31, 2013
December
31, 2012
January 1,
2012
Other related parties -
other related parties'
chairperson or its
significant stockholder,
is HTC's chairperson
$8,303 $19,269 $-
Purchase prices for related parties and third
parties were similar. The outstanding of trade
payables to related parties are unsecured and will
be settled in cash.
Loans to Related Parties
December 31,
2013
December 31,
2012
January 1,
2012
Associates
Principal $- $6,554,025 $-
Interest
receivables
- 46,068 -
$- $6,600,093 $-
On July 19, 2012, the Company's board of directors
passed a resolution to offer US$225,000 thousand
short-term loan to Beats Electronics, LLC to
support the transition of Beats Electronics, LLC
into a product company. This loan was secured by
all the assets of Beats Electronics, LLC. Term loan
must be repaid in full no later than one year from
signing date of loan agreement and the repayment
can be made in full at any time during the term of
the loan or at the repayment date. The calculation
of interest is based on LIBOR plus 1.5%, 3.5%, 5.5%
and 7.5% for the first quarter to the fourth quarter,
respectively. The principal and interest were
received in full in June 2013. The interest income
amounted to NT$211,139 thousand and NT$82,027
thousand for the years ended December 31, 2013
and 2012, respectively.