Creative 2011 Annual Report Download - page 39

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39
CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
14. OTHER CURRENT ASSETS
Group Company
2011 2010 2011 2010
US$’000 US$’000 US$’000 US$’000
Prepaid expenses and security deposits 17,449 17,172 2,581 2,456
Prepaid non-income taxes 1,606 1,522 345 449
Other receivables from associated companies 2,917 244 2,558 244
Other receivables from non-related parties 670 2,052 482 1,157
Loan to non-related party 12,762 12,762 12,762 12,762
35,404 33,752 18,728 17,068
Less: Allowance for impairment of
loan to non-related party (12,762) (12,762) (12,762) (12,762)
22,642 20,990 5,966 4,306
In July 2007, the Company divested 80.1% of its interest in its then wholly owned manufacturing subsidiary in Malaysia
(“ex-subsidiary”). Prior to divestment date, the Company had made loans to the ex-subsidiary for the purchase of properties,
construction of factory and working capital purposes amounting to approximately US$36,900,000 (Malaysia Ringgit (“RM”)
130 million). Under the terms of the divestment agreement, this amount would be repaid in various instalments up to 1
June 2011 of which US$24,100,000 (RM85 million) had been repaid to date. Of the outstanding balance of US$12,762,000
(RM45 million), US$4,254,000 (RM15 million) was due on 1 June 2009, US$4,254,000 (RM15 million) was due on 1 June
2010 and the remaining balance of US$4,254,000 (RM15 million) was due on 1 June 2011. The ex-subsidiary had failed to
repay these amounts as at 30 June 2011. Subsequent to the nancial year ended 30 June 2009, the Company was informed
that the ex-subsidiary had decided to end all manufacturing business with the Company in view of the ex-subsidiary’s
unfavourable business and nancial situation.
In view of the above, the total outstanding balance of US$12,762,000 (RM45 million) potentially may not be recoverable
and the Company has provided for this amount in the nancial year ended 30 June 2009.
The other receivables from associated companies and non-related parties are unsecured, interest-free and repayable on
demand.
15. FINANCIAL ASSETS, AVAILABLE-FOR-SALE
Group Company
2011 2010 2011 2010
US$’000 US$’000 US$’000 US$’000
Beginning of nancial year 33,895 27,753 – –
Fair value gains recognised in equity 1,713 6,721 – –
Additions 2,117 500 – –
Disposals (521) – – –
Impairment losses (Note 7) (728) (1,079) – –
End of nancial year 36,476 33,895 – –