Vtech 2001 Annual Report Download - page 57

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19. PROVISIONS FOR LIABILITIES AND CHARGES (Continued)
Warranties
The Group gives one year warranties on certain products and undertakes to repair or replace items that fail to
perform satisfactorily. A provision is recognized for expected warranty claims based on past experience of the
level of repairs and returns. It is expected that the majority of the provision will be utilized in the next financial
year.
Returns
The Group provides for loss of margin and cost of materials scrapped on estimated product returns.
Restructuring charges
Restructuring charges include the costs of terminating employees and other closure costs to be incurred on
the cessation or streamlining of business activities. As set out in note 3 above, a comprehensive restructuring
plan was announced in March 2001.
20. SHARE CAPITAL
2001 2000
US$ million US$ million
Authorized
Ordinary shares:
400,000,000 (2000: 400,000,000) of US$0.05 each 20.0 20.0
2001 2000
Note No. of shares US$ million US$ million
Issued and fully paid
Ordinary shares of US$0.05 each:
Balance as at 1st April 2000 214,454,787 10.7 10.6
Exercise of share options 4,000 Ð Ð
Issued on the acquisition of a subsidiary 22 5,578,292 0.3 Ð
Issued in lieu of scrip dividend 7 5,114,154 0.3 0.1
Balance as at 31st March 2001 225,151,233 11.3 10.7
55
Notes to the Financial Statements
VTech Holdings Ltd Annual Report 2001