CONSOLIDATED FINANCIAL STATEMENTS

ICC Development (International) Ltd and its Subsidiaries CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2010 INDEPENDENT AUDITORS’ REPORT TO THE ME...
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ICC Development (International) Ltd and its Subsidiaries

CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2010

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF INTERNATIONAL CRICKET COUNCIL We have audited the accompanying consolidated financial statements of ICC Development (International) Limited and its subsidiaries (together the “Group”), which comprise the consolidated statement of financial position as at 31 December 2010 and the consolidated statement of comprehensive income , consolidated statement of changes in Members’ funds and consolidated statement of cash flows for the year and then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate for the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Group as of 31 December 2010 and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.

Emphasis of matter paragraph

We draw attention to note 23 to the consolidated financial statements which describes in detail a threatened legal action against the Group. Our opinion is not qualified in respect of this matter. Ernst and Young Dubai 4th April 2011

FINANCIAL STATEMENTS 2010 / ICC Development (International) Limited and its Subsidiaries

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Directors’ Report

For the period ended 31 December 2010 The Directors take pleasure in presenting their report together with the audited consolidated financial statements for the year ended 31 December 2010.

Business Activities

During the year ICC conducted such business activities as were necessary to manage international cricket on behalf of its Members. These activities included the provision of Match Officials for bilateral international cricket, the ICC U/19 Cricket World Cup, World Cricket League Div 1 and ICC World Twenty20 2010 (West Indies). The development programme managed by the ICC continued with its activities to promote and develop the game globally. During the period USD 11.3m was spent on development activities.

Consolidated Financial Results

The surplus for the year amounted to USD 76.1m (year 2009: USD 84.3m). Key features include:-





Total revenue amounted to USD 134.9m (2009: USD 170.6m). This includes USD 105.1m (2009: USD 140.6m) from event revenue, USD 5.2m (2009: USD 4.5m) from ICC’s commercial and other activities including sponsorship revenue for the Elite Panel of Umpires and Referees, ICC Rankings and for the management of the ICC Global Cricket Academy. Interest and other financial income totalled USD 2.7m (2009: USD 3.6m), and Members’ subscriptions of USD 21.9m (2009: USD 21.9m). Operating costs amounted to USD 58.8m (2009: USD 86.3m). This includes event cost of USD 30.2m (2009: USD 59.1m), staff and consultant costs of USD 13.9m (2009: USD 13.3m), meetings and annual conference costs of USD 1.8m (2009: USD 1.9m) and Anti-Corruption costs (excluding staff) of USD 0.9m (2009: USD 0.6m). Other operating costs relating to the management of the global game totalled USD 12m (2009: USD 11.4m).

During the year, Members were paid total distributions amounting to USD 69.333m (2009: USD 70.555m).

Capital and Reserves



Capital and Reserves amount to USD 29.4m (2009: USD 27.9m), represented by Reserves of USD 19.9m (2009: USD 18.8m) and Retained Surplus of USD 9.5m (2009: USD 9.0m).

Insurance of Directors and Officers

During the year the Group paid premiums to insure all Directors and Officers of the Group. The insurance policy covers any Director or Officer of the Company including past Directors, the Chairman, Managing Director, Secretary and employees of the Group. The liabilities insured include claims and costs that may be incurred in defending any proceedings that may be brought against any Director or Officer when acting in their capacity as a director /officer of the Group.

Auditors

A resolution to re-appoint Ernst & Young as the Group’s auditors for the forthcoming year will be put to the Annual General Meeting. For and on behalf of the Board Sharad Pawar Chairman 4th April 2011

FINANCIAL STATEMENTS 2010 / ICC Development (International) Limited and its Subsidiaries

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Group Directory at 31 December 2010

The consolidated financial statements comprise the results of ICC Development (International) Limited (the Company) and its subsidiary companies ICC (Events) Limited, International Cricket Council FZ-LLC, IDI Mauritius Limited and IDI Hungary KFT, hereafter referred to as the Group. The Group is owned by International Cricket Council for the benefit of all its Members.

International Cricket Council FZ-LLC (“FZ LLC”)

General Information

FZ LLC was incorporated in the United Arab Emirates in May 2005 in order to provide administrative support services to IDI and to the Group. FZ LLC is a wholly owned subsidiary of IDI.

International Cricket Council (“ICC”)

Registered office of FZ LLC

The ICC is primarily responsible for all aspects of the day to day running and the development of international cricket. This extensive remit includes management of the ICC Code of Conduct and the playing conditions relevant to the international game, provision of qualified and independent Match Officials for Tests, One Day and Twenty20 Internationals and initiating and implementing key policy decisions for the benefit of the game. The ICC is a company registered in the BVI with a share capital of $1 and undertakes no transactions. The ICC currently has 105 Members.

ICC Development (International) Limited (“IDI”)

IDI was incorporated in the British Virgin Islands in 1993 and is principally responsible for: (i)

Managing the commercial rights to cricket events owned by the Members of the ICC;

(ii)

Managing the ICC Development Program; and

(iii) Providing such administration services as are required by the ICC. IDI is a wholly owned subsidiary of ICC. Registered office of IDI The address of the company’s registered office is as follows: Craigmuir Chambers, Road Town, Tortola, Territory of the British Virgin Islands

The address of the company’s registered office is as follows: Office No 28, Bldg # 2 Second Floor Dubai Media City Dubai United Arab Emirates

ICC (Events) Limited (“IEL”)

IEL was incorporated in the Republic of Cyprus in May 2004 in order to manage certain commercial rights of IDI. IEL is a wholly owned subsidiary of IDI. Registered office of IEL The address of the company’s registered office is as follows: Diomidous , 10, Alphamega-Akropolis Building, Office No 401 3rd Floor, PC 2024, Nicosia Cyprus

IDI Mauritius Limited

IDI Mauritius Limited was incorporated in Mauritius in April 2009 to manage certain commercial rights of IDI. The company is a wholly owned subsidiary of IDI. Registered Office of IDI Mauritius Limited The address of the company’s registered office is as follows: 4th Floor, Les Jamalacs Bldg Vieux Conseil Street Port Louis Mauritius

IDI Hungary KFT

IDI Hungary KFT was incorporated in Hungary in May 2009 to manage certain commercial rights of IDI. The company is a wholly owned subsidiary of IDI. Registered Office of IDI Hungary KFT The address of the company’s registered office is as follows: H-2724, Ujlengyel, Petofi Sandor u. 40, Hungary

FINANCIAL STATEMENTS 2010 / ICC Development (International) Limited and its Subsidiaries

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Group Directory at 31 December 2010 Directors

Executive Director Haroon Lorgat

Chief Executive Officer

Appointed 2008

Director Since

Non-Executive Directors Director

Country

Sharad Pawar

India

Chairman

2006

Alan Isaac

New Zealand

Vice-Chairman

2008

John Jeffrey Clarke

Australia

Full Member representative*

2008

Mustafa AHM Kamal

Bangladesh

Full Member representative*

2009

Giles Clarke

England

Full Member representative*

2007

Shashank Manohar

India

Full Member representative*

2008

Chris Moller

New Zealand

Full Member representative*

2010

Ijaz Butt

Pakistan

Full Member representative*

2008

Abdul K Khan

South Africa

Full Member representative*

2011

DS de Silva

Sri Lanka

Full Member representative*

2009

Dr Julian Hunte

West Indies

Full Member representative*

2007

Peter Chingoka

Zimbabwe

Full Member representative*

Neil Speight

Bermuda

Associate Member representative+

2008

Imran Khwaja

Singapore

Associate Member representative+

2008

Scotland

Associate Member representative+

2010

Keith Oliver

1997

*Full Member representatives are the President/Chairman of the National Cricket Federation in their respective country or the designated representative of that National Cricket Federation. +The three Associate Member representatives are elected by the Associate Members and the representatives of the Affiliate members at the Annual Meeting of the Associates for a two year term.

The following Directors served during the period until their resignation or expiry of their term in office: Director

Country

Resigned

David Morgan

England

Chairman

2010

Samir Inamdar

Kenya

Associate Member representative+

2010

Dr. M Nyoka

South Africa

Full Member representative*

2011

No Director held an interest in the shares of the Company during the period.

David Becker Company Secretary 4th April 2011

FINANCIAL STATEMENTS 2010 / ICC Development (International) Limited and its Subsidiaries

5

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 December 2010 Notes

Operating activities

2010 USD’000

2009 USD’000

Revenue

Members subscriptions

21,869

21,869

Commercial

3,424

3,215

Foreign exchange gain, net

4

1,635

4

1,778

1,287



27,075

28,006

13,935

13,269

Others

Costs Staff and consultants

5

Premises

6

430

403

Other operating expenses

7

14,148

13,436



28,513

27,108

Net operating (deficit)/surplus before event related activities

(1,438)

898

Net gain on event related activities

8

74,816

81,465

Interest and investment income

9

2,720

1,935

SURPLUS BEFORE TAX

76,098

84,298

10

(25)

(31)

SURPLUS FOR THE YEAR

76,073

84,267

Realised (loss) on sale of available-for-sale investments

(206)

-

Unrealised gain on revaluation of available-for-sale investments

1,280

498

Other comprehensive income for the year

1,074

498

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

77,147

84,765

Income tax expense

APPROPRIATION OF SURPLUS FOR THE YEAR Distribution to Members Payment to Members

11

69,333

70,555

Allocation to ICC Global Cricket Development Programme

11

6,213

7,706



75,546

78,261

Transferred to general reserves

-

2,300

Transferred to retained surplus

527

3,706



76,073

84,267

The attached notes 1 to 26 form part of these consolidated financial statements.

FINANCIAL STATEMENTS 2010 / ICC Development (International) Limited and its Subsidiaries

6

CONSOLIDATED STATEMENT OF FINANCIAL POSITION at 31 December 2010

Notes

ASSETS

Non-current assets

2010 USD’000

2009 USD’000

Property and equipment

12

7,471

8,049

Available-for-sale investments

13

27,599

28,724



35,070

36,773

Current assets

Receivables and prepayments

14

115,100

18,765

Short term deposits, current accounts and cash

15

39,912

83,651



155,012

102,416

Total assets

190,082

139,189

2,026

1,554

17

149,418

79,405

LIABILITIES

Non-current liabilities

Employees’ end of service benefits

Current liabilities Advances received Bank overdraft

18

2,967

111

Accounts payable, accruals and provisions

19

6,832

29,327

(Deficit)/surplus in cricket development funds

20

(622)

932



158,595

109,775

Total liabilities

160,621

111,329

Net assets

29,461

27,860

REPRESENTED BY Members’ Funds Share capital

21

-

-

Reserves

22

19,896

18,822

Retained surplus

9,565

9,038



29,461

27,860

The consolidated financial statements were authorised for issue in accordance with a resolution of the Board of Directors on 4th April 2011 and were signed on its behalf by:

Sharad Pawar Haroon Lorgat Faisal Hasnain

Chairman

Chief Executive

Chief Financial Officer

The attached notes 1 to 26 form part of these consolidated financial statements.

FINANCIAL STATEMENTS 2010 / ICC Development (International) Limited and its Subsidiaries

7

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 December 2010 Notes

2010 USD’000

2009 USD’000

Surplus before tax

76,098

84,298

1,260

879



OPERATING ACTIVITIES Adjustments for: Depreciation

12

Gain on disposal of property and equipment

-

(16)

Provision for employees’ end of service benefits

902

719

Interest and other investment income

(2,720)

(1,935)



75,540

83,945

Working capital changes: Receivables and prepayments

(95,788)

2,102

Accounts payable, accruals and provisions

(22,495)

5,187

Advances received

70,013

(9,494)

Net cash generated from operations

27,270

81,740

Employees’ end of service benefits paid

(430)

(431)

Income tax

(25)

(31)

Net cash generated from operating activities

26,815

81,278

(682)

(3,006)

INVESTING ACTIVITIES

Purchase of property and equipment

12

Proceeds from disposal of property and equipment

-

16

Proceeds from sale of available-for-sale investments

2,173

2,500

13

-

(24,578)

Interest and other financial income received

2,199

1,935

Net cash from / (used in) investing activities

3,690

(23,133)

(7,767)

(8,736)

11

(69,333)

(70,555)

Net cash used in financing activities

(77,100)

(79,291)

NET DECREASE IN CASH AND CASH EQUIVALENTS DURING THE YEAR

(46,595)

(21,146)

Cash and cash equivalents at the beginning of the year

83,540

104,686

CASH AND CASH EQUIVALENTS AT THE END OF YEAR

36,945

83,540

Purchase of available-for-sale investments

FINANCING ACTIVITIES

Amount utilised for ICC Global Cricket Development Programme - net Payment to Members

15

The attached notes 1 to 26 form part of these consolidated financial statements.

FINANCIAL STATEMENTS 2010 / ICC Development (International) Limited and its Subsidiaries

8

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ FUNDS

For the year ended 31 December 2010 Surplus USD’000

BALANCE AT 1 JANUARY 2009 Surplus for the year Other comprehensive income Total comprehensive income for the year

Reserves (note 22) USD’000

Retained surplus USD’000

Total USD’000

-

16,024

5,332

21,356

84,267

-

-

84,267

-

498

-

498

84,267

498

-

84,765

Appropriations Distribution to Members

(78,261)

-

-

(78,261)

Transfer

(6,006)

2,300

3,706

-

-

18,822

9,038

27,860

76,073

-

-

76,073

-

1,074

-

1,074

76,073

1,074

-

77,147

(75,546)

-

-

(75,546)

(527)

-

527

-

-

19,896

9,565

29,461

BALANCE AT 31 DECEMBER 2009 Surplus for the year Other comprehensive income Total comprehensive income for the year Appropriations Distribution to Members Transfer

BALANCE AT 31 DECEMBER 2010

The attached notes 1 to 26 form part of these consolidated financial statements.

FINANCIAL STATEMENTS 2010 / ICC Development (International) Limited and its Subsidiaries

9

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2010 1 ACTIVITIES

ICC Development (International) Limited (the “Company” or “IDI”) is a limited liability company registered and incorporated in the British Virgin Islands. IDI is owned by International Cricket Council (“ICC”) for the benefit of all its Members. There are currently 105 Members of the ICC. IDI is principally responsible for: (i)

Managing the commercial rights of cricket events;

(ii) Managing the ICC Development Programme; and (iii) Providing such administrative and other services as are required by the ICC. The registered head office of IDI is at Craigmuir Chambers, Road Town, Tortola, British Virgin Islands.

2 SUBSIDIARIES

These consolidated financial statements incorporate the operations of the Company and its following subsidiaries (together the “Group”). Name of the subsidiary

Country of Percentage incorporation shareholding



Principal activities

31 December 31 December 2010 2009

International Cricket Council FZ-LLC United Arab Emirates 100% 100 %

To provide administrative services to IDI.

ICC (Events) Ltd Cyprus 100% 100 %

To manage certain commercial rights of IDI.

IDI Hungary Kft Hungary 100% 100 %

To manage certain commercial rights of IDI.

IDI Mauritius Ltd Mauritius 100% 100 %

To manage certain commercial rights of IDI.

The Group’s principal place of business is at Street 69, Dubai Sports City, Emirates Road, P.O. Box 500070, Dubai, United Arab Emirates.

FINANCIAL STATEMENTS 2010 / ICC Development (International) Limited and its Subsidiaries

10

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2010 3 SIGNIFICANT ACCOUNTING POLICIES Basis of preparation

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The consolidated financial statements have been presented in US Dollars, which is the functional currency of the Company. The consolidated financial statements are prepared under the historical cost convention, modified to include the measurement at fair value of available-for-sale investments and derivatives.

New accounting Standards and Interpretations: The accounting policies adopted are consistent with those of the previous financial year, except for the adoption of new and amended IFRS and IFRIC interpretations effective as of 1 January 2010. Adoption of these Standards and Interpretations did not have an impact on the financial statements of the Group. IASB Standards and Interpretations issued but not adopted

The amendments to IASB Standards and Interpretations which have been issued as of the date of the statement of financial position but are effective from future dates have not yet been adopted by the Group.

Allocation to ICC Global Cricket Development Programme

Allocations to ICC Global Cricket Development Programme are classified as distribution to Members. Such amounts are distributed to the Regional Development Program for development of cricket in respect of regions or are used to meet deficits in organizing minor events for the development of cricket. Amounts retained by the Group on behalf of Associate Members in this respect are classified as a liability.

Group accounting

Subsidiary undertakings, which are those entities in which the Company has an interest of more than one half of the voting rights or otherwise has power to exercise control over the operations, are consolidated. Subsidiaries are consolidated from the date on which control is transferred to the Company and are no longer consolidated from the date that control ceases. All intercompany transactions, balances and unrealised gains on transactions between the group companies are eliminated.

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Event related activities

Future adoption of these Standards and Interpretations is not expected to have an impact on the financial statements of the Group except in case of the following:

Revenue from cricket events is recognised as earned at the time when respective cricket events are completed. The interim collections for cricket events are held as advances received in the consolidated statement of financial position.

IFRS 9 Financial Instruments: Classification and Measurement

Commercial revenue

IFRS 9 as issued reflects the first phase of the IASBs work on the replacement of IAS 39 and applies to classification and measurement of financial assets as defined in IAS 39. The standard is effective for annual periods beginning on or after 1 January 2013. In subsequent phases, the IASB will address classification and measurement of financial liabilities, hedge accounting and derecognition. The completion of this project is expected in early 2011. The adoption of the first phase of IFRS 9 will have an effect on the classification and measurement of the Group’s financial assets. The Group will quantify the effect in conjunction with the other phases, when issued, to present a comprehensive picture.

Significant accounting judgments

In the process of applying the Group’s accounting policies management has used the following judgments, apart from those involving estimates, which have the most significant effect on the amount recognised in the statement of comprehensive income and expenditure. Completion of event

Revenue from cricket events is recognised as earned at the time when respective cricket events are completed. As revenue relating to individual matches of a cricket tournament cannot be reliably measured, management have concluded that revenue should be recognised on conclusion of the tournament.

FINANCIAL STATEMENTS 2010 / ICC Development (International) Limited and its Subsidiaries

Revenue is recognised on an accrual basis in accordance with the contractual terms. Members’ subscriptions

Revenue from Members subscriptions are recognised over the period to which they relate. Interest income

Interest income is recognised in the financial statements using the effective interest method. Investment income

Income from investments is recognised when right to receive is established. Grants

Grants are recognised as income over the period necessary to match them with the related costs which they are intended to compensate.

Event costs

The Group recognises event expenditure when the revenues from that event are recognised. In the interim, expenses incurred on cricket events to the extent that they are recoverable are held as prepaid expenses in the consolidated statement of financial position.

11

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2010 3 SIGNIFICANT ACCOUNTING POLICIES CONTINUED

Income tax

Taxation is provided for in accordance with fiscal regulations in the countries in which the Group operates. Deferred income tax is provided, using the liability method, on all temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on laws that have been enacted at the reporting date. Deferred income tax assets are recognised for all deductible temporary differences and carry-forward of unused tax assets and unused tax losses to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax assets and unused tax losses can be utilised. The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Income tax relating to items recognised in other comprehensive income or directly in Members’ funds is recognised in other comprehensive income or in Members’ funds outside the income and expenditure accounts.

Property and equipment

Property and equipment comprises the ICC Headquarters Building, furniture, fixtures, equipment and vehicles. These are stated at cost less accumulated depreciation and any impairment in value. Depreciation is calculated on a straight line basis over the estimated useful lives of the assets as follows: Building Furniture, fixtures and equipment Vehicles

over 20 years over 2 to 4 years over 4 years

No depreciation is charged on the Cricket World Cup trophy because management believes that its residual value is not less than its carrying value. The carrying values of property and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the estimated recoverable amount, the assets are written down to their recoverable amount. Expenditure incurred to replace a component of an item of property and equipment that is accounted for separately is capitalised and the carrying amount of the equivalent component that is replaced is written off. Other subsequent expenditure is capitalised only when it increases future economic benefits of the related item of fixtures, furniture and equipment. All other expenditure is recognised in the statement of comprehensive income and expenditure as the expense is incurred.

FINANCIAL STATEMENTS 2010 / ICC Development (International) Limited and its Subsidiaries

The asset’s residual values, useful lives and methods of depreciation are reviewed at each financial year end, and adjusted prospectively, if appropriate.

Impairment and uncollectibility of financial assets

An assessment is made at each reporting date to determine whether there is objective evidence that a specific financial asset may be impaired. If such evidence exists, any impairment loss is recognised in the statement of comprehensive income and expenditure. Impairment is determined as follows: (a) For assets carried at fair value, impairment is the difference between cost and fair value, less any impairment loss previously recognised in the statement of comprehensive income and expenditure; (b) For assets carried at cost, impairment is the difference between carrying value and the present value of future cash flows discounted at the current market rate of return for a similar financial asset; and (c) For assets carried at amortised cost, impairment is the difference between carrying amount and the present value of future cash flows discounted at the original effective interest rate.

Available-for-sale investments

The Group classifies its investments in securities depending on the purpose for which the investments were acquired. Management determines the classification based on its intentions at the time of purchase. All of the Group’s investments are currently classified as available-for-sale and are included within non-current assets, unless they are required to be sold within the next twelve months, in which case they are included within current assets. Purchases and sales of investments are recognised on the trade date, which is the date that the Group commits to purchase or sell the asset. Available-for-sale investments are initially recognised at fair value including the transaction costs and are subsequently remeasured at fair value. For investments traded in an active market, fair value is determined by reference to closing quoted market prices. Unrealised gains and losses arising from changes in the fair value of investments are recognised in consolidated statement of comprehensive income. When investments classified as available-for-sale are sold or impaired, the cumulative gains or losses are included in the statement of comprehensive income and expenditure for the period.

Derivative financial instruments

The Group enters into forward foreign exchange contracts to manage the exposure to fluctuations in exchange rates. Derivatives are stated at fair value. Derivatives with positive fair values (unrealised gains) are included in ‘receivables and prepayments’ and derivatives with negative fair values (unrealised losses) are included in ‘accounts payable, accruals and provisions’ in the statement of financial position. Since the derivatives entered into do not qualify for hedge accounting, any gains or losses arising from changes in the fair value of the derivatives are taken directly to the statement of comprehensive income for the year.

12

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2010 3 SIGNIFICANT ACCOUNTING POLICIES CONTINUED

Receivables

Receivables are initially measured at fair value and subsequently measured at amortised cost being the original invoice amount less a provision for any uncollectible amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off when there is no possibility of recovery.

Cash and cash equivalents

For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash in hand, bank balances, short-term deposits and bank overdrafts.

Employees’ end of service benefits

In accordance with the UAE statutory requirement, the Group provides end of service benefits to its employees. The entitlement to these benefits is based upon the employees’ salary and length of service, subject to the completion of a minimum service period. The expected costs of these benefits are accrued over the period of employment.

Accounts payable and accruals

Accounts payable and accruals are carried at amortised cost. Liabilities are recognised for amounts to be paid in the future for goods or services received, whether billed by the supplier or not.

Provisions

Provisions are carried at amortised cost. Provisions are recognised when the Group has an obligation (legal or constructive) arising from a past event, and the costs to settle the obligation are both probable and able to be reliably measured.

Distribution to Members

Distribution to Members represents those amounts that are determined by the Board of Directors as due to the Members at the conclusion of a cricketing event in accordance with the established policies of the Group.

Leases

Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Operating lease payments are recognised as an expense in the statement of income on a straight-line basis over the lease term.

Contingencies

Contingent liabilities are not recognised in the financial statements. They are disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. A contingent asset is not recognised in the consolidated financial statements but disclosed when an inflow of economic benefits is probable.

Foreign currencies

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the reporting date. All differences are taken to the consolidated statement of comprehensive income and expenditure.

FINANCIAL STATEMENTS 2010 / ICC Development (International) Limited and its Subsidiaries

4 OTHER REVENUE

2010 USD’000

2009 USD’000

-

168

301

285

Grants

42

Match fines Licensing

967

Security services fees recoveries

350

Management fees Others

89

193

350

118

202

1,778

1,287

5 STAFF AND CONSULTANTS’ COSTS 2010 USD’000

2009 USD’000

Administrative wages, salaries and related costs

8,835

8,442

Umpires and referees

4,566

4,343

Security managers

351

333

Other staff related expenses

183

151

13,935

13,269

2010 USD’000

2009 USD’000





6 PREMISES COSTS

5

174

Utilities and other premises related costs

425

229



430

403

2010 USD’000

2009 USD’000

Rent

7 OTHER OPERATING EXPENSES Meetings and Annual Conference

1,766

1,853

Travel related costs

2,240

2,421

Anti-Corruption Unit (excluding staff costs)

877

640

Contribution to Special Zimbabwe Fund

775

1,724

ICC Centenary expenses

-

677

Annual Ranking awards

500

500

Special projects

2,150

689

Depreciation

1,260

879

Other expenses

4,580

4,053



14,148

13,436

13

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2010 8 NET GAIN ON EVENT RELATED ACTIVITIES Event related revenues

2010 USD’000

10 INCOME TAX

2009 USD’000

-

77,687

ICC Champions Trophy 2009

-

62,979

ICC World Twenty20 2010

105,058

-



105,058

140,666

ICC World Twenty20 2007

-

2,995

ICC World Twenty20 2009

-

(30,708)

2,000

(30,712)

(730)

(776)

(31,512)

-



(30,242)

(59,201)



74,816

81,465

ICC World Twenty20 2010

9 INTEREST AND INVESTMENT INCOME Interest income from short term deposits Interest on loan to Members Interest income from availablefor-sale investments

2010 USD’000

2009 USD’000

640

1,057

103

230

1,224

648

Gain on sale of availablefor-sale investments

206

-

Fair value gain on revaluation of foreign currency forward exchange contracts (see note 16)

547

-

2,720

1,935



25

31

2010 USD’000

2009 USD’000

-

39,000

2,000

28,560

ICC World Twenty20 2007

-

2,995

ICC World Twenty20 2010

67,333

-



69,333

70,555

ICC World Twenty20 2009 (note 20)

-

3,999

ICC Champions Trophy 2009 (note 20)

-

3,707

ICC World Twenty20 2010 (note 20)

6,213

-



6,213

7,706



75,546

78,261

11 DISTRIBUTION TO MEMBERS Payment to Members

Event related costs

ICC Awards 2010 / 2009

2009 USD’000

Corporation tax - subsidiaries

ICC World Twenty20 2009

ICC Champions Trophy 2009

2010 USD’000



FINANCIAL STATEMENTS 2010 / ICC Development (International) Limited and its Subsidiaries

ICC World Twenty20 2009 ICC Champions Trophy 2009

Allocation to ICC Global Cricket Development Programme

Allocation to the ICC Global Cricket Development Programme represents the distribution due to Members but allocated to the programme. The amounts unspent at year end are held in trust and accordingly recognised as a liability (see note 20).

14

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2010 12 PROPERTY AND EQUIPMENT

ICC Headquarters Building USD‘000

Furniture, fixtures, equipment and vehicles USD‘000

Capital work- in-progress USD‘000

Total USD‘000

6,396

3,571

-

9,967

341

341

-

682

6,737

3,912

-

10,649

At 1 January 2010

215

1,703

-

1,918

Depreciation charge for the year

328

932

-

1,260

At 31 December 2010

543

2,635

-

3,178

6,194

1,277

-

7,471

At 1 January 2009

-

1,624

5,375

6,999

Additions during the year

-

790

2,216

3,006

6,396

1,195

(7,591)

-

-

(38)

-

(38)

6,396

3,571

-

9,967

Cost: At 1 January 2010 Additions during the year At 31 December 2010 Accumulated depreciation:

Net book value: At 31 December 2010 Cost:

Transfers in / (out) Disposals during the year At 31 December 2009 Accumulated depreciation: At 1 January 2009 Depreciation charge for the year Relating to disposals during the year At 31 December 2009

-

1,077

-

1,077

215

664

-

879

-

(38)

-

(38)

215

1,703

-

1,918

6,181

1,868

-

8,049

Net book value: At 31 December 2009 ICC Headquarters Building The building was constructed by ICC on land granted free of charge in Dubai Sports City. The land has been recorded in the financial statements at a nominal value of USD 1 as allowed by International Financial Reporting Standards. The process of registration of the land in the name of the Group is not yet complete; however, management is confident that the Group has satisfactory title of such land.

FINANCIAL STATEMENTS 2010 / ICC Development (International) Limited and its Subsidiaries

15

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2010 13 AVAILABLE-FOR-SALE INVESTMENTS



2010 USD’000

2009 USD’000

At 1 January

28,724

6,148

Additions during the year

-

24,578

Disposals during the year

(1,967)

(2,500)

Change in fair values

1,074

498

Amortisation of premium on acquisition

(232)

-

At 31 December

27,599

28,724

Debt instruments – cost after amortisation

26,304

28,503

Cumulative fair value reserve (see note 22)

1,295

221

At the end of the year

27,599

28,724

Available-for-sale investments are made up of as follows:

Included in available-for-sale investments are debt instruments with carrying value amounting to USD 13 million which are under lien against the overdraft facility availed by the Group (see note 18).

14 RECEIVABLES AND PREPAYMENTS



2010 USD’000

2009 USD’000

Advances – ICC Global Cricket Development Programme

10

1,404

Receivables for sale of media and commercial rights

69,211

5,329

Staff advances

934

1,082

Interest receivable

475

611

Loan to an Associate Member

209

202

Loan to a Full Member

3,596

-

Amounts due from Members

23,408

-

Positive fair value of derivatives (see note 16)

547

-

Events related prepayments

14,855

8,014

Prepaid expenses and other receivables

1,855

2,123



115,100

18,765

Loan to an Associate Member represents loan to the USA Cricket Association, and is scheduled to be settled against future grants in 2011 and 2012. Loan to Full Member represents loan to Sri Lanka Cricket Board which carries interest at three month LIBOR plus 3% and will be settled against the distributions from the ICC Cricket World Cup 2011. Amounts due from Members include subscriptions due for the years 2009 and 2010. The amount will be recovered from the 2011 Cricket World Cup distributions. As at 31 December 2010, amounts due from a Member at initial value of USD 113 thousand and other receivables of initial value of USD 39 thousand were impaired and fully provided for. Event related prepayments are mainly in respect of the ICC Cricket World Cup 2011.

FINANCIAL STATEMENTS 2010 / ICC Development (International) Limited and its Subsidiaries

16

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2010 15 SHORT TERM DEPOSITS, CURRENT ACCOUNTS AND CASH

2010 USD’000

2009 USD’000

Current accounts and cash

14,589

9,467

Short term bank deposits

25,323

74,184

Short term deposits, current accounts and cash

39,912

83,651

Depending on the cash requirements of the Group, short term deposits are made for varying periods of between fifteen days and six months and earn interest at the prevailing short-term deposit rates. Included in the short term deposits is an amount equivalent to USD 5 million (2009: USD 5 million) which is under lien against the overdraft facility availed by the Group (note 18). For the purpose of the consolidated statement of cash flows, cash and cash equivalents comprise of the following statement of consolidated financial position amounts:

2010 USD’000

2009 USD’000

Cash and short term deposits

39,912

83,651

Bank overdraft (see note 18)

(2,967)

(111)



36,945

83,540

16 DERIVATIVES

The table below shows the positive fair values of derivative financial instruments, together with the notional amounts analysed by the term to maturity. The notional amounts indicate the volume of transactions outstanding at year-end and are neither indicative of the market risk nor credit risk. Over 3 Positive Notional Within months fair value amount 3 months to 1 year USD ‘000 USD ‘000 USD ‘000 USD ‘000 Forward foreign exchange contracts

547

11,200

6,400

4,800

At 31 December 2010

547

11,200

6,400

4,800

At 31 December 2009

-

-

-

-

The Group uses foreign currency contracts to manage some of its transaction exposures. The outstanding forward exchange contracts were used to manage the exposure of fluctuation in the exchange rate of Indian Rupee against US Dollar. Since the derivatives entered into do not qualify for hedge accounting, any gains or losses arising from changes in the fair value of the derivatives are taken directly to the statement of comprehensive income for the year.

17 ADVANCES RECEIVED



2010 USD’000

2009 USD’000

Commercial and event related advances

149,418

76,405

Subscription received in advance from Associate Members

-

3,000



149,418

79,405

FINANCIAL STATEMENTS 2010 / ICC Development (International) Limited and its Subsidiaries

17

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2010 18 BANK OVERDRAFT



2010 USD’000

2009 USD’000

Bank overdraft

2,967

111

The Group has obtained an overdraft facility up to a limit of USD 10 million (2009: USD 5 million). The facility carries interest rate of LIBOR plus 2% and is secured by lien over fixed deposits and debt securities (see note 13 and 15) with the same bank.

19 ACCOUNTS PAYABLE, ACCRUALS AND PROVISIONS



2010 USD’000

2009 USD’000

Accruals

3,486

3,916

Amounts due to Associate Members (including Associate Member Fund)

1,737

10,672

Others

1,609

5,801

Amounts due to Full Members

-

8,938



6,832

29,327

20 CRICKET DEVELOPMENT FUNDS

Movements in the amount managed for the ICC Global Cricket Development Programme recognised in the consolidated statement of financial position are as follows:

2010 USD’000

2009 USD’000

Surplus at 1 January

932

1,962

Allocated during the year

6,213

7,706

Allocations including transfer from Associate Member Fund

4,959

4,795

Utilised during the year

(11,373)

(9,860)

Net shortfall for ICC minor events expensed against the Fund

(1,353)

(3,671)

(Deficit)/surplus at 31 December

(622)

932

Utilised during the year represents:

2010 USD’000

2009 USD’000

Asia

5,080

4,222

Europe

1,811

1,506

Africa

1,415

1,198

Americas

1,397

1,139

East Asia-Pacific

839

782

Cricket Development costs incurred centrally

831

1,013



11,373

9,860

Region

FINANCIAL STATEMENTS 2010 / ICC Development (International) Limited and its Subsidiaries

18

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2010 21 SHARE CAPITAL 50 thousand shares of USD 1

Authorised 2010 USD’000

2009 USD’000

50,000

50,000

Issued and fully paid 2010 USD’000

2009 USD’000

1

1

1 bearer share of USD 1 The bearer share is held by ICC for the benefit of all its Members.

22 RESERVES

This includes general reserve and cumulative fair value reserves in respect of available-for-sale investments (see note 13). General reserve amounts to USD 18.6 million (2009: USD 18.6 million). Cumulative changes in fair value of available-for-sale investments amounted to USD 1,295 thousand (2009: USD 221 thousand).

23 COMMITMENTS AND CONTINGENCIES

2010 USD’000

2009 USD’000

Within one year

-

-



2010 USD’000

2009 USD’000

13

113

Capital commitments

Contingencies

Bank guarantees

It is anticipated that no material liabilities will arise from the above contingencies which arise in the ordinary course of business. In 2007, Essel Sports Pvt Ltd initiated a lawsuit against the Board of Control for Cricket in India (‘BCCI’) in the Delhi High Court, claiming that the BCCI’s decision not to recognise the Indian Cricket League (‘ICL’) and to take certain actions against those involved with the ICL was unlawful (the ‘Indian Action’). The Indian Action is at an advanced stage. A suit has also been filed in England (against the ICC and England and Wales Cricket Board ‘ECB’) and served upon the ICC and ECB (the ‘English Action’). As part of the defence to the English Action, and because of the substantial overlap between the issues raised in the English and Indian Actions, the BCCI, ICC and ECB have sought an anti-suit injunction from the Delhi High Court, preventing ICL from taking any further steps in the English Action (against all of those three parties) until the Indian Action has been dealt with. External lawyers have been appointed to act collectively for the ICC, ECB and BCCI in defending the English Action (including pursuit of the anti-suit injunction). The advice received from those lawyers is that the ICC and its Members will be able to mount a robust defence of the English Action and consequently no provision has been made in the consolidated financial statements in this respect. The court in England has recently granted a stay on hearing this matter until the Indian action is resolved. Related to these actions, the ICC Executive Board has agreed to provide an indemnity to the ECB in relation to all costs, damages and awards made against it as a result of the English Action.

FINANCIAL STATEMENTS 2010 / ICC Development (International) Limited and its Subsidiaries

19

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2010 24 RELATED PARTY TRANSACTIONS

Related parties represent ICC Members, Directors and key management personnel of the Company. Other than as stated below, none of the Non-Executive Directors received any remuneration except for the reimbursement of expenses incurred in connection with ICC meeting / events. Member transactions and balances are disclosed elsewhere in these consolidated financial statements. 2010 USD’000

2009 USD’000

Executive

768

708

Non-Executive

410

330

Remuneration of key management personnel:

25 RISK MANAGEMENT Interest rate risk

Interest rate risk arises from the possibility that changes in interest rates will affect future profitability or the fair values of financial instruments. The Group is exposed to interest rate risk as a result of mismatches or gaps in the amounts of assets and liabilities that mature or reprice in a given period. The following table demonstrates the sensitivity to a reasonable possible change in interest rates, with all other variables held constant, of the Group’s surplus and equity. Increase in basis points 100

Impact on surplus 2010 USD’000

Impact on equity 2010 USD’000

Impact on surplus 2009 USD’000

Impact on equity 2009 USD’000

324

(852)

741

(1,096)

The sensitivity of the surplus is the effect of the assumed changes in interest rates on the net interest income for one year based on the floating rate financial assets and financial liabilities held at the year end. The sensitivity of equity is calculated by revaluing fixed rate available-for-sale financial assets at year-end for the effect of assumed changes in interest rates. The total sensitivity is based on the assumption that there are parallel shifts in the yield curve.

Credit risk

The Group has policies that limit the amount of credit exposure to any one financial institution and investments are only made in high quality financial institutions or financial products. Further, the Group has policies in place to ensure that sales of commercial rights are only made to counterparties with an appropriate credit history. With respect to credit risk arising from the financial assets of the Group, including cash and cash equivalents, the Group’s exposure to credit risk arises from default of the counterparty, with a maximum exposure equal to the carrying amount of these instruments.

FINANCIAL STATEMENTS 2010 / ICC Development (International) Limited and its Subsidiaries

20

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2010 25 RISK MANAGEMENT CONTINUED

Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. The table below summarises the maturities of the Group’s undiscounted financial liabilities at the year end, based on contractual and/ or anticipated payment dates and current market interest rates. At 31 December 2010

Less than 3 months USD’000

3 to 12 months Sub total USD’000 USD’000

1 to 5 years USD’000

>5 years USD’000

Total USD’000

806

116,171

116,977

32,441

-

149,418

Accounts payable, accruals and provisions

3,346

-

3,346

-

-

3,346

Amount managed (on behalf of the Members of ICC) for the ICC Global Cricket Development Programme

(622)

-

(622)

-

-

(622)

Bank overdraft

2,967

-

2,967

-

-

2,967

Total

6,497

116,171

122,668

32,441

-

155,109

3 to 12 months Sub total USD’000 USD’000

1 to 5 years USD’000

>5 years USD’000

Total USD’000

Advances received

At 31 December 2009

Less than 3 months USD’000

Advances received

4,670

30,486

35,156

28,768

15,481

79,405

Accounts payable, accruals and provisions

16,135

9,276

25,411

-

-

25,411

Amount managed (on behalf of the Members of ICC) for the ICC Global Cricket Development Programme

251

681

932

-

-

932

Bank overdraft

111

-

111

-

-

111

21,167

40,443

61,610

28,768

15,481

105,859

Total

FINANCIAL STATEMENTS 2010 / ICC Development (International) Limited and its Subsidiaries

21

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2010 25 RISK MANAGEMENT CONTINUED

Currency risk

Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. The Group’s foreign currency exposure arises mainly from its monetary assets and liabilities denominated in foreign currencies other than UAE Dirhams or USD. These assets mainly include foreign currency bank deposits. Sensitivity of the statement of comprehensive income and expenditure to reasonable possible changes in GBP conversion rate is demonstrated below. Change in GBP rate %

Effect on surplus for the year USD’000

31 December 2010 GBP

+ 5

79

GBP

- 5

(79)

GBP

+ 5

655

GBP

- 5

(655)

31 December 2009

As the UAE Dirham is currently pegged to the US Dollar, balances in UAE Dirham are not considered to represent significant currency risk.

Capital Management

The primary objective of the Group’s capital management is to ensure that it maintains sufficient funds in order to support its activities and maximise Members’ value. The Group manages its capital structure and makes adjustments to it in light of changes in operating conditions. No changes were made in the objectives, policies or processes during the current or prior year. Capital comprises share capital and reserves, and is measured at USD 29.4 million (2009: USD 27.9 million).

26 FAIR VALUES OF FINANCIAL INSTRUMENTS

Financial instruments comprise of financial assets and financial liabilities. Financial assets consist of short term deposits, cash and bank balances, receivables and investments. Financial liabilities consist of payables, Cricket Development funds and bank overdraft. The fair values of financial instruments are not materially different from their carrying values. The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data. At the reporting date all the available for sale investments of the Group with a fair value of USD 27.5 million (2009: USD 28.7 million) have been classified within Level 1 of fair value hierarchy. The forward contracts at year end with a fair value of USD 547 thousand (2009: nil) have been classified within Level 2 of fair value hierarchy. During the current year, the Group had no financial instruments classified within Level 3 of fair value hierarchy.

FINANCIAL STATEMENTS 2010 / ICC Development (International) Limited and its Subsidiaries

22