Vtech 2015 Annual Report Download - page 63

VTech Holdings Limited Annual Report 2015 61
13 Creditors and Accruals
The Group The Company
2015 2014 2015 2014
Note US$ million US$ million US$ million US$ million
Trade creditors 13(a) 186.1 140.8 ––
Other creditors
and accruals 13(b) 155.4 159.3 0.5 0.5
Forward foreign
exchange
contracts
held as
cash flow
hedging
instruments
18(b)
&(d) 1.1 4.3 ––
342.6 304.4 0.5 0.5
(a) Ageing Analysis
An ageing analysis of trade creditors by transaction date is
as follows:
2015
US$ million
2014
US$ million
0-30 days 60.7 56.5
31-60 days 46.5 33.4
61-90 days 56.4 34.8
>90 days 22.5 16.1
Total 186.1 140.8
(b) Other creditors and accruals
Other creditors and accruals comprised largely of accruals in staff
costs, advertising and promotion expenses, rebates and allowances
to customers, and miscellaneous operating expenses.
Other creditors and accruals are expected to be settled or
recognised as income within one year or are repayable on demand.
14 Provisions
At 31 March 2015, provisions of US$27.3 million (2014: US$27.9
million) include provisions for defective goods returns of US$22.0
million (2014: US$22.7 million).
Defective goods returns
2015
US$ million
2014
US$ million
At 1 April 22.7 23.0
Effect of changes in exchange rates (0.4) 0.1
Additional provisions charged to
consolidated income statement 24.0 26.4
Utilised during the year (24.3) (26.8)
At 31 March 22.0 22.7
The Group undertakes to repair or replace items that fail to perform
satisfactorily in accordance with the terms of the sales. A provision
is recognised for expected return claims, which included cost of
repairing or replacing defective goods, loss of margin and cost of
materials scrapped, based on past experience of the level of repairs
and returns.
15 Pension Schemes
The Group operated a defined benefit scheme and defined
contribution schemes in Hong Kong and overseas. The defined
contribution scheme operated in Hong Kong complied
with the requirements under the Mandatory Provident Fund
(“MPF”) Ordinance.
(a) Defined contribution schemes
For the defined contribution schemes operated for overseas
employees and Hong Kong employees under the MPF Ordinance,
the retirement benefit costs expensed in the consolidated income
statement amounted to US$15.8 million (2014: US$13.8 million)
and US$0.8 million (2014: US$0.7 million) respectively.
(b) Defined benefit scheme
For the defined benefit scheme (the “Scheme”) operated for Hong
Kong employees, contributions made by the Group during the
year were calculated based on advice from Towers Watson Hong
Kong Limited (“Towers Watson”), independent actuaries and
consultants. The Scheme is valued annually. The latest actuarial
valuation was completed by Towers Watson as at 31 March 2015
using the projected unit credit method.
(i) For the defined benefit scheme, the amounts recognised in
the consolidated balance sheet are as follows:
2015
US$ million
2014
US$ million
Fair value of Scheme assets 28.8 26.8
Present value of funded defined
benefit obligations (31.8) (28.8)
Net obligations on defined benefit
scheme recognised in the
consolidated balance sheet (3.0) (2.0)
A portion of the above liability is expected to be settled after more
than one year. However, it is not practicable to segregate this
amount from the amounts payable in the next twelve months, as
future contributions will also relate to future services rendered and
future changes in actuarial assumptions and market conditions.
The Group expects to pay US$1.8 million in contributions
to defined benefit retirement scheme in the year ending 31
March 2016.
(ii) Movement in fair value of Scheme assets:
2015
US$ million
2014
US$ million
At 1 April 26.8 24.3
Interest income on Scheme assets 0.6 0.3
Return on Scheme assets excluding
interest income 1.2 1.9
Actual Group’s contributions 1.4 1.3
Actual benefit paid (1.1) (0.9)
Administrative expenses paid from
Scheme assets (0.1) (0.1)
At 31 March 28.8 26.8