Creative 2010 Annual Report Download - page 55

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55
CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
US$’000 balance denominated in:
US$ S$ EURO GBP Others Total
Group
2010
Financial assets
Cash and cash equivalents 42,168 123,443 26,878 5,674 15,862 214,025
Financial assets, available-for-sale 19,060 10,879 – – 3,956 33,895
Trade receivables 14,703 1,449 7,776 2,463 2,608 28,999
Other receivables 1,934 249 32 – 663 2,878
Other nancial assets-deposits 174 31,686 – 41 276 32,177
78,039 167,706 34,686 8,178 23,365 311,974
Financial liabilities
Financial liabilities (55,960) (14,642) (14,057) (1,456) (3,223) (89,338)
Net nancial assets 22,079 153,064 20,629 6,722 20,142 222,636
(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.
Bank borrowings were fully repaid in the prior nancial year.
(iii) Currency risk
The functional currency of the Company 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 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 loss. No forward exchange contracts were outstanding as at 30 June 2010 and 30 June 2009. The
Group’s currency exposure is as follows:
2009
Financial assets
Cash and cash equivalents 64,392 56,120 70,579 30,212 29,248 250,551
Financial assets, available-for-sale 17,097 8,624 – – 2,032 27,753
Trade receivables 19,148 1,070 9,254 5,214 7,679 42,365
Other receivables 3,437 417 111 – 1,250 5,215
Other nancial assets-deposits – 40,524 – 45 226 40,795
104,074 106,755 79,944 35,471 40,435 366,679
Financial liabilities
Financial liabilities (54,981) (18,027) (16,731) (3,355) (7,226) (100,320)
Net nancial assets 49,093 88,728 63,213 32,116 33,209 266,359
A change of 10% in foreign currency exchange rates relative to US$ at the reporting date would increase/decrease equity
and prot or loss by the amounts shown below. This analysis assumes that all other variables remain constant.