Annual Report 2011/12 - International Entertainment Corporation

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Notes to the Consolidated Financial StatementsFor the year ended 31 March 20126. FINANCIAL INSTRUMENTS(a) Categories of financial instruments2012 2011HK$’000 HK$’000Financial assetsFinancial assets at FVTPL 67,337 95,339Loans and receivables (including cash and cash equivalents) 1,464,847 2,242,196Held-to-maturity investments – 15,485Financial liabilitiesFinancial liabilities at FVTPLContingent consideration (note 34(i)) 16,600 16,600Other financial liabilities at amortised cost 160,172 401,956(b) Financial risk management objectives and policiesAs at 31 March 2012, the Group’s major financial instruments include financial assets at FVTPL, loan receivable,trade receivables, other receivables, bank balances and cash, trade payables, other payables and accruedcharges, and promissory notes.As at 31 March 2011, the Group’s major financial instruments include held-to-maturity investments, financial assetsat FVTPL, trade receivables, other receivables, bank balances and cash, trade payables, other payables andaccrued charges, and promissory notes.Details of these financial instruments are disclosed in respective notes. The risks associated with these financialinstruments and the policies on how to mitigate these risks are set out below. Management of the Groupmanages and monitors these exposures to ensure appropriate measures are implemented on a timely andeffective manner.Market riskCurrency riskAs at 31 March 2012, currency risk exists with respect to the financial assets at FVTPL, other receivables, bankbalances and cash, other payables and promissory notes denominated in foreign currency of the relevant groupentities as disclosed in notes 18, 23, 24, 25 and 26 respectively.As at 31 March 2011, currency risk exists with respect to the financial assets at FVTPL, held-to-maturityinvestments, other receivables, bank balances and cash, other payables and promissory notes denominated inforeign currency of the relevant group entities as disclosed in notes 18, 21, 23, 24, 25 and 26 respectively.International Entertainment Corporation - Annual Report 2011/12 49
Notes to the Consolidated Financial StatementsFor the year ended 31 March 20126. FINANCIAL INSTRUMENTS (Continued)(b) Financial risk management objectives and policies (Continued)Market risk (Continued)Currency risk (Continued)The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities atthe end of the reporting period are as follow:AssetsLiabilities2012 2011 2012 2011HK$’000 HK$’000 HK$’000 HK$’000United States dollars (“USD”) 259,662 260,079 – –HK$ 330,304 1,631,782 150,091 391,526Other than above, several subsidiaries of the Group have the following intra-group receivables/payablesdenominated in HK$ and USD, which are foreign currency of the relevant group entities.Amounts due fromgroup entitiesAmounts due togroup entities2012 2011 2012 2011HK$’000 HK$’000 HK$’000 HK$’000USD 2,307,042 1,968,210 2,068,665 1,968,210HK$ 543,303 405,836 543,303 405,836The Group currently does not have foreign currency hedging policy. However, management monitors foreigncurrency exposure and will consider hedging significant foreign currency exposure should the need arise.Sensitivity analysisThe currency risk is mainly arising from exchange rate of Peso against USD and HK$.The following table details the Group’s sensitivity to a 10% (2011: 10%) increase and decrease in Peso againstUSD and HK$. 10% (2011: 10%) represents the assessment of the reasonably possible change in foreignexchange rates made by the management of the Group. The sensitivity analysis includes only outstanding foreigncurrency denominated monetary items as well as intra-group receivables/payables and adjusts their translationat the year end for a 10% (2011: 10%) change in foreign currency rates. A positive number below indicates anincrease in post-tax profit for the year where the foreign currencies strengthen 10% (2011: 10%) against Peso,and vice versa. For a 10% (2011: 10%) weakening of the foreign currencies against Peso, there would be anequal and opposite impact on the post-tax profit for the year.HK$ ImpactUSD Impact2012 2011 2012 2011HK$’000 HK$’000 HK$’000 HK$’000Increase in post-tax profit for the year 30,167 136,199 40,271 18,87550International Entertainment Corporation - Annual Report 2011/12
Page 1 and 2: Annual Report2011/12(Incorporated i
Page 3 and 4: Corporate InformationEXECUTIVE DIRE
Page 5 and 6: Chairman’s StatementIn addition t
Page 7 and 8: Management Discussion and AnalysisB
Page 9 and 10: Board of Directors and Senior Manag
Page 15 and 16: Report of the DirectorsRESERVESDeta
Page 17 and 18: Report of the DirectorsINTERESTS AN
Page 19 and 20: Report of the DirectorsARRANGEMENTS
Page 21 and 22: Report of the DirectorsPURCHASE, SA
Page 23 and 24: Corporate Governance ReportBOARD OF
Page 25 and 26: Corporate Governance ReportAUDIT CO
Page 27 and 28: Independent Auditor’s ReportTO TH
Page 29 and 30: Consolidated Income StatementFor th
Page 31 and 32: Consolidated Statement of Financial
Page 33 and 34: Consolidated Statement of Changes i
Page 35 and 36: Consolidated Statement of Cash Flow
Page 37 and 38: Notes to the Consolidated Financial
Page 49: Notes to the Consolidated Financial
Page 91: Particulars of Principal Properties

Annual Report 2011/12 - International Entertainment Corporation

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