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54 VTech Holdings Ltd Annual Report 2011
Notes to the Financial Statements
17 Share Capital and Share Options (Continued)
(d) Capital Management
The Group’s primary objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, so that it can
continue to provide returns for shareholders and benefits for other stakeholders, by pricing products and services commensurately with
the level of risk and by securing access to finance at a reasonable cost.
The Group actively and regularly reviews and manages its capital structure to maintain a balance between the higher shareholder
returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position,
and makes adjustments to the capital structure in light of changes in economic conditions.
The Group has no bank borrowings as at 31 March 2011 (2010: US$nil). Adjusted capital comprises all components of equity less
unaccrued proposed dividends.
In order to monitor its capital structure, the Group may adjust the amount of dividends to be paid to shareholders, issue new shares,
return capital to shareholders or raise new debt financing.
The adjusted capital at 31 March 2011 and 31 March 2010 is as follows:
The Group The Company
2011
US$ million
2010
US$ million
2011
US$ million
2010
US$ million
Total equity 543.9 517.5 335.1 376.7
Less: Proposed dividends (153.9) (153.1) (153.9) (153.1)
390.0 364.4 181.2 223.6
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
18 Reserves
(a) The Group
Details of the movements in reserves of the Group during the years ended 31 March 2011 and 31 March 2010 are set out in the
consolidated statement of changes in equity.
(b) The Company
Note
Share
capital
US$ million
Share
premium
US$ million
Exchange
reserve
US$ million
Capital
reserve
US$ million
Revenue
reserve
US$ million
Total
equity
US$ million
At 1 April 2009 12.3 106.9 (1.2) 1.7 266.5 386.2
Changes in equity for the year ended
31 March 2010
Comprehensive income
Profit for the year – – – – 124.6 124.6
Total comprehensive income for the year – – – – 124.6 124.6
Final dividend in respect of the previous year – – – – (101.2) (101.2)
Interim dividend in respect of the current year 5 – – – – (39.5) (39.5)
Shares issued under share option scheme 0.1 5.7–––5.8
Equity-settled share based payments – 0.7 – 0.1 – 0.8
At 31 March 2010 and 1 April 2010 12.4 113.3 (1.2) 1.8 250.4 376.7
Changes in equity for the year ended
31 March 2011
Comprehensive income
Profit for the year – – – – 142.9 142.9
Total comprehensive income for the year – – – – 142.9 142.9
Final dividend in respect of the previous year 5 – – – – (153.9) (153.9)
Interim dividend in respect of the current year 5 – – – – (39.7) (39.7)
Shares issued under share option scheme – 6.8–––6.8
Equity-settled share based payments – 1.0 – 1.3 – 2.3
At 31 March 2011 12.4 121.1 (1.2) 3.1 199.7 335.1