Vtech 2001 Annual Report Download - page 64

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25. CONTINGENT LIABILITIES AND MATERIAL LEGAL PROCEEDINGS
The directors have been advised that certain accusations of infringements of patents, trademarks and
tradenames have been lodged against the Company and its subsidiaries. In the opinion of legal counsel, it is
too early to evaluate the likelihood of an unfavourable result. The directors are of the opinion that even if the
accusations are found to be valid, there will be no material adverse effect on the financial position of the Group
and believe adequate provisions have been made in these financial statements.
At 31st March 2001, there also existed a contingent liability in respect of bills discounted amounting to US$0.6
million (2000: US$1.4 million).
On 25th January 2001, the Company and a wholly-owned subsidiary VTech Electronics Netherlands BV, filed a
complaint in the United States District Court for the Southern District of New York seeking damages in excess
of US$300 million against Lucent Technologies Inc. and Lucent Technologies Consumer Products L.P. for fraud
and breaches of the Agreement for Purchase and Sale of Stock and Assets in connection with the acquisition
from Lucent of their consumer telephone operations (see note 3 above).
26. COMPANY BALANCE SHEET
2001 2000
Note US$ million US$ million
Non-current assets
Subsidiaries 102.7 227.2
Associates 0.6 0.6
103.3 227.8
Current assets
Amounts due from subsidiaries (i) 225.5 137.9
Amount due from an associate Ð 1.0
Debtors and prepayments 1.0 0.5
Tax recoverable 0.4 Ð
Cash at bank and deposits 0.2 0.2
227.1 139.6
Current liabilities
Amounts due to subsidiaries (i) (208.9) (101.4)
Creditors and provisions (1.9) (0.7)
(210.8) (102.1)
Net operating assets 119.6 265.3
Share capital 20 11.3 10.7
Reserves 21 108.3 254.6
Shareholders' funds 119.6 265.3
Note:
(i) The amounts due from/(to) subsidiaries have no fixed terms of repayment. Most of the amounts due are interest free.
62
Notes to the Financial Statements