Vtech 2015 Annual Report Download - page 62

VTech Holdings Limited Annual Report 2015
Notes to the Financial Statements
60
10 Stocks
(a) Stocks in the consolidated balance sheet comprise:
2015
US$ million
2014
US$ million
Raw materials 99.6 83.1
Work in progress 32.6 25.0
Finished goods 158.0 157.8
290.2 265.9
Stocks carried at net realisable value at 31 March 2015 amounted
to US$11.0 million (2014: US$8.2 million).
(b) The analysis of the amount of stocks recognised as an expense
and included in the consolidated income statement is
as follows:
2015
US$ million
2014
US$ million
Carrying amount of stocks sold 1,258.7 1,258.5
Write-down of stocks 10.9 9.1
Reversal of write-down of stocks (0.3) (3.0)
1,269.3 1,264.6
The reversal of write-down of stocks arose due to an increase in
estimated net realisable value of certain products as a result of
change in consumer preferences.
11 Debtors, Deposits and Prepayments
Note
2015
US$ million
2014
US$ million
Trade debtors (Net of
allowance for doubtful
debts of US$6.0 million
(2014: US$6.4 million)) 11(a)&(b) 221.9 208.6
Other debtors, deposits
and prepayments 31.4 27.2
Forward foreign exchange
contracts held as
cash flow hedging
instruments 18(b)&(d) 6.6 –
259.9 235.8
All of other debtors, deposits and prepayments apart from
the amounts of US$3.8 million (comprised largely of royalty
prepayments) (2014: US$5.2 million) are expected to be recovered
or recognised as an expense within one year.
(a) Ageing Analysis
At the balance sheet date, the ageing analysis of trade debtors,
based on the invoice date and net of allowance for doubtful debts,
is as follows:
2015
US$ million
2014
US$ million
0-30 days 127.9 120.6
31-60 days 71.6 67.9
61-90 days 21.2 18.4
>90 days 1.2 1.7
Total 221.9 208.6
The majority of the Group’s sales are on letter of credit and on open
credit with varying terms of 30 to 90 days. Certain open credit sales
are covered by credit insurance or bank guarantees.
(b) Impairment of trade debtors
Impairment losses in respect of trade debtors are recorded using
an allowance account unless the Group is satisfied that recovery of
the amount is remote, in which case the impairment loss is written
off against trade debtors directly.
At 31 March 2015, the Group’s trade debtors of US$6.0 million
(2014: US$6.4 million) were individually determined to be impaired
as management considered that these receivables cannot be
recovered. Consequently, full provisions for these doubtful debts
were recognised.
The movement in the allowance for doubtful debts during the
year, including both specific and collective loss components, is
as follows:
Note
2015
US$ million
2014
US$ million
At 1 April 6.4 7.2
Impairment loss recognised 21.4 0.6
Impairment loss written back 2(1.1) (0.7)
Uncollectible amounts
written off (0.5) (0.8)
Effect of changes in
exchange rates (0.2) 0.1
At 31 March 6.0 6.4
(c) Trade debtors that are not impaired
As at 31 March 2015, 97% (2014: 97%) of the Group’s trade debtors
were not impaired, of which 100% (2014: 100%) was either not past
due or less than two months past due. Based on past experience
of the Group, it is determined that no impairment allowance
is necessary in respect of these balances as these balances are
considered to be fully recoverable. The Group does not hold any
collateral over these balances.
12 Deposits and Cash
The Group The Company
2015 2014 2015 2014
US$ million US$ million US$ million US$ million
Short term bank
deposits 94.4 165.0 ––
Cash at bank and
in hand 199.8 157.9 0.6 0.8
Deposits and cash 294.2 322.9 0.6 0.8
Less: bank deposits
with maturity
greater than
three months (70.0) (135.0) ––
Cash and cash
equivalents in
the consolidated
statement of cash
flows 224.2 187.9 0.6 0.8
Deposits and cash as at 31 March 2015 include US$35.8 million
equivalent (2014: US$31.6 million) placed with banks in the PRC,
the remittance of which is subject to relevant rules and regulations
of foreign exchange control promulgated by the PRC government.