Creative 2012 Annual Report Download - page 41

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39
CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
14. OTHER CURRENT ASSETS
Group Company
2012 2011 2012 2011
US$’000 US$’000 US$’000 US$’000
Prepaid expenses and security deposits 13,622 17,449 752 2,581
Prepaid non-income taxes 1,162 1,606 88 345
Other receivables from associated companies 212 2,917 212 2,558
Other receivables from non-related pares 1,334 670 515 482
Loan to non-related party 12,762 12,762 12,762 12,762
29,092 35,404 14,329 18,728
Less: Allowance for impairment of
loan to non-related party (12,762) (12,762) (12,762) (12,762)
Less: Impairment loss on unulised
building facilies (Note 7) (3,598) – – –
12,732 22,642 1,567 5,966
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. The balance amount remained outstanding as
at 30 June 2012. 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 impairment loss on unutilised building facilities as at 30 June 2012 of US$3,598,000 (2011: Nil) was a charge taken for
committed rental and related costs of the unutilised space in the Group’s headquarters building in Singapore arising from
the restructuring exercise and headcount reduction in the nancial year ended 30 June 2011.
The other receivables from associated companies and non-related parties are unsecured, interest-free and repayable on
demand.
15. FINANCIAL ASSETS, AVAILABLE-FOR-SALE
Group Company
2012 2011 2012 2011
US$’000 US$’000 US$’000 US$’000
Beginning of nancial year 36,476 33,895 – –
Fair value (losses) gains recognised in other
comprehensive income (6,927) 1,713 – –
Addions 1,000 2,117 – –
Disposals (481) (521) – –
Impairment losses (Note 7) (3,417) (728) – –
End of nancial year 26,651 36,476 – –