Annual Report 2006 - Venture Corporation Limited

notes to financial statements
December 31, 2006
7 AVAILABLE-FOR-SALE INVESTMENTS (Cont’d)
(b)
The investments in unquoted equity shares represent investments of $2,042,000 (2005: $1,828,000) in venture
capital funds that invest in research and development activities and/or the commercial application of this
knowledge and $247,000 (2005: Nil) in club investments.
The investments in unquoted equity shares for the group include an impairment loss charged to the profit and
loss statement for the year of $500,000 (2005: Nil).
(c) (e) The investments in quoted and unquoted debt securities of the company have effective interest rates ranging
from 3.75% to 5.125% (2005: 3.75% to 5.125%) and of the group ranging from 3.13% to 5.125% (2005:
2.53% to 5.125%) per annum. These investments of the company have maturity dates ranging from May 4,
2007 to September 1, 2018 (2005: May 26, 2007 to September 1, 2018) and of the group ranging from March
26, 2007 to September 1, 2018 (2005: March 14, 2006 to September 1, 2018).
(d)
These are Collaterised Debt Obligations acquired with embedded credit derivatives (Note 20) as follows:
(i)
(ii)
Principal amount of $167,800,000 (2005: $167,800,000) with effective interest rate of 3.2% and
maturity date on December 20, 2009.
Principal amount of $53,949,000 (2005: $58,664,000) with effective interest rate of 5.5% and maturity
date on June 20, 2008.
As at December 31, 2006, the fair values of these instruments amounted to $206,139,000 (2005:
$208,173,000)
The company’s and group’s available-for-sale investments that are not denominated in the functional currencies
of the respective entities are as follows:
The Company
The Group
2006 2005 2006 2005
$’000 $’000 $’000 $’000
United States dollars 45,728 51,406 57,539 64,840
8 TRADE RECEIVABLES
The Company
The Group
2006 2005 2006 2005
$’000 $’000 $’000 $’000
Outside parties 150,993 220,083 624,110 590,598
The average trade credit period is 71 days (2005: 60 days).
An allowance has been made for the estimated irrecoverable amounts from the sale of goods to third parties of
$2,488,000 (2005: $2,826,000). This allowance has been determined by reference to past default experience.
An amount of $338,000 (2005: Nil) has been credited to the profit and loss statement in 2006 as a result of recovery of
a trade debt which arose from a third party for which provision had been made previously.
56 venture corporation limited