Contents - MiTAC

(10) Information on derivative transactions:
For year 2003:
Item
Silver Star Developments
Ltd.
Interest rate SWAP
For year 2002:
Item
Silver Star Developments
Ltd.
Buy of forward foreign
exchange
Buy of forward foreign
exchange
Buy of forward foreign
exchange
Interest rate SWAP
Notional Amount
(in thousands)
JPY 300,000
Notional Amount
(in thousands)
Fair Market Value
(in thousands)
(NT$ 808 )
Contract Terms
Trade date Strike Price Settlement Date
2002.03.27
Contract Terms
2.95%
- 83 -
2004.09.27
Fair Market Value
(in thousands) Trade date Strike Price Settlement Date
Hedged Assets
(in thousands)
Hedged Assets
(in thousands)
-
Hedged Liabilities (in
thousands)
JPY300,000
Gain/(Loss)Recognized
(NT$ 808)
Hedged Liabilities (in
thousands) Gain/(Loss)Recognized
US$ 50,200 (NT$ 5,910 ) 2002.10.28~2002.11.29 CAD1.5567~1.5876 2003.01.07~2003.02.04 - US$50,200 (NT$ 5,910)
US$ 2,600 NT$ 2,476
US$ 18,500
JPY 300,000
NT$ 2,670
(NT$ 1,670 )
2002.11.21 MXN10.2113~10.2453 2003.01.06~2003.01.21 - US$2,600 NT$ 2,476
2002.11.08~2002.11.21
2002.03.27
GBP1.5632~1.5854
2.95%
2003.01.10~2003.02.25
2004.09.27
-
-
US$18,500
JPY300,000
a. Credit risk: There is no significant credit risk with respect to the above transactions because the counter party banks are of good financial standing.
b. Market risk: The main purpose of the transaction is to hedge exchange loss. Any change in the value of the instrument will be offset by a corresponding change in
the underlying commitment. Accordingly, no market risk is expected.
c. Future cash flow: the Company will receive (pay) cash or sale (purchase) contracts on settlement dates.
NT$ 2,670
( NT$ 1,670 )