Vtech 2008 Annual Report Download - page 32

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CONSOLIDATED FINANCIAL STATEMENTS
VTech Holdings Ltd Annual Report 2008
30
NOTES TO THE FINANCIAL STATEMENTS
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31st March 2008
2008 2007
Note US$ million US$ million
Operating activities
Operating pro t 228.9 194.0
Depreciation of tangible
assets 2 29.0 24.2
Amortisation of leasehold
land payments 2 0.1 0.1
Loss on disposal of tangible
assets 2 0.5 1.3
(Increase)/decrease in stocks (8.3) 9.7
Increase in debtors and
prepayments (25.5) (19.8)
Increase/(decrease) in
creditors and accruals 5.6 (11.2)
Decrease in provisions (1.5) (1.4)
Cash generated from
operations 228.8 196.9
Interest received 8.7 7.5
Taxes paid (24.5) (15.1)
Net cash generated from
operating activities 213.0 189.3
Investing activities
Proceeds from disposal of
tangible assets 0.5 0.2
Purchase of  nancial assets 13 (15.0) –
Purchase of tangible assets 7 (47.1) (37.2)
Net cash used in investing
activities (61.6) (37.0)
Financing activities
Proceeds from issued shares
upon exercise of share
options 18 5.7 0.4
Dividends paid 5 (127.9) (155.3)
Net cash used in  nancing
activities (122.2) (154.9)
E ect of exchange rate
changes 9.7 6.7
Increase in cash and cash
equivalents 38.9 4.1
Cash and cash equivalents at
beginning of the year 246.5 242.4
Cash and cash equivalents
at end of the year 285.4 246.5
Analysis of the balance of
cash and cash
equivalents
Deposits and cash 285.4 246.5
The notes on pages 30 to 52 form part of these  nancial
statements.
PRINCIPAL ACCOUNTING POLICIES
A Principal Activities and Organisation
The Group’s principal activities and separable segments are set
out in note 1 to the  nancial statements.
The Company was incorporated in Bermuda. In view of the
international nature of the Group’s operations, the  nancial
statements are presented in United States dollar.
B Statement of Compliance
The accompanying  nancial statements have been prepared
in accordance with International Financial Reporting Standards
(“IFRS”) promulgated by the International Accounting Standards
Board. IFRS includes International Accounting Standards (“IAS”)
and related Interpretations. These  nancial statements also
comply with the disclosure requirements of the Hong Kong
Companies Ordinance and the applicable disclosure provisions
of the Rules Governing the Listing of Securities on The Stock
Exchange of Hong Kong Limited and the Bermuda Companies
Act 1981.
The International Accounting Standards Board has issued a
number of new and revised IFRSs that are  rst e ective or
available for early adoption for the current accounting period
of the Group. The adoption of the new and revised IFRSs has no
signi cant impacts to the  nancial statements of the Group for
the years ended 31st March 2008 and 31st March 2007, except
for the presentation requirements following the adoption of
IFRS 7, Financial Instruments: Disclosures and the amendment to
IAS 1, Presentation of  nancial statements: Capital disclosures.
IFRS 7, Financial instruments: Disclosures
As a result of the adoption of IFRS 7, the  nancial statements
included expanded disclosure about the signi cance of the
nancial instruments and the nature and extent of risks arising
from those instruments, compared with the information
previously required to be disclosed by IAS 32, Financial
Instruments: Disclosure and presentation. These disclosures are
provided in note 19 to the  nancial statements.
IAS 1, Presentation of  nancial statements: Capital disclosures
The amendment to IAS 1 introduces additional disclosure
requirements to provide information about the level of capital
and the Group’s and the Company’s objectives, policies and
processes for managing capital. These new disclosures are set
out in note 17 to the  nancial statements.
Both IFRS 7 and the amendment to IAS 1 do not have
any material impact on the classi cation, recognition and
measurement of the amounts recognised in the  nancial
statements.
The Group has not applied any new standard or interpretation
that is not yet e ective for the current accounting period.
The accounting policies described in notes (C ) to (Y) have been
consistently applied by the Group.