prospectus for - Pumpkin Patch investor relations

PUMPKIN PATCH LIMITED & SUBSIDIARIESNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE 6 MONTHS ENDED 31 JANUARY 2004 (CONTINUED)20. Intangible AssetsGroup31 Jan 2004 31 July 2003 31 Dec 2002$000 $000 $000Patents and TrademarksPatents and trademarks at beginning of period 207 201 142Acquisitions 19 36 59Current period amortisation (24) (30) -Patents and trademarks at end of period 202 207 201Goodwill on ConsolidationGoodwill (gross) at beginning of the period 1,538 1,538 -Amortisation charge (1,538) (1,538) -Unamortised balance at beginning of the period - - -Goodwill arising on acquisition of subsidiary - - 1,538Current period amortisation - - (308)Impairment charge - - (1,230)Goodwill at end of the period - - -Total Intangible Assets 202 207 20121. Financial Instruments(a)Currency and Interest Rate RiskNature of activities and management policies with respect to financial instruments:1. CurrencyThe Group undertakes transactions denominated in foreign currencies from time to time, and resulting from these activities,exposures in foreign currency arise. It is the Group’s policy to hedge foreign currency risks as they arise except for foreigncurrency risks authorised by the Board. To manage these exposures, the Group uses forward foreign exchange contracts andforeign currency options.The notional principal or contract amounts of foreign exchange instruments outstanding at balance date are:31 Jan 2004 31 July 2003 31 Dec 2002$000 $000 $000Forward foreign exchange contracts 38,971 22,627 28,442Forward options 5,276 11,009 9,529Total 44,247 33,636 37,971The cash settlement requirements of the forward foreign exchange contracts and options approximates the notional amountshown above.2. Interest RateThe Group has long-term fixed rate borrowings which are used to fund on-going activities. Management monitors the levels ofinterest rates on an on-going basis and periodically will lock in fixed rates on the next floating reset, when they are of the viewthat interest rates may increase.64