Ubisoft 2001 Annual Report Download - page 82

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82
Foreign exchange risk
In order to limit the Group's foreign exchange risks, Ubi Soft
Entertainment has several ways of covering the risk of exchange
rate fluctuations:
■when it makes a loan in a foreign currency to its subsi-
diaries, the parent company also takes out a loan in the
same currency. Thus if the exchange rate rises or falls,
any gain or loss on the loan is offset by a gain or loss on
the parent company's loan in the opposite direction.
■in the case of risks on currency sales associated with
commercial transactions, these are either automatically
offset during the year by other transactions in the
opposite direction (purchases of goods in a foreign
currency offset by royalty payments by subsidiaries in
the same currency), or covered by forward sales
contracts.
On March 31, 2002, the exceptional income essentially consists of the bonus for the merger with Ubi Ventures (M1.2)
and profit made on share buyback (M2.8).
IV. EXCEPTIONAL INCOME/EXPENSE
Exceptional income breaks down as follows :
03.31.02 03.31.01
Exceptional income:
Exceptional income from management transactions 4,242 /
Exceptional income from capital transactions 39,380 7
43,622 7
Exceptional charges:
Exceptional charges from management transactions 4 1
Exceptional charges from capital transactions 39,341 45
Depreciation and provisions 245 /
39,590 46
Total exceptional income/expense 4,032 (39)
V. CORPORATE TAX
03.31.02 03.31.02
Current income before tax (28,422) (8,370)
Exceptional income/expense 4,032 (39)
Income before tax (24,390) (8,409)
Tax basis (23 527) (7 809)