Vtech 2002 Annual Report Download - page 48

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VTech Holdings Ltd46
Notes to the Financial Statements
6. TAXATION (continued)
The consolidated effective income tax rate for the year ended 31st March 2002 was 18.7% (2001: 0.8%). This effective income tax rate is
reconciled to the statutory domestic income tax rate as follows:
2002 2001
%%
Statutory domestic income tax rate 16.0 (16.0)
Difference in overseas income tax rates 3.4 —
Underprovision in prior years 3.4 —
Non-temporary differences (17.7) (2.2)
Tax losses not recognized 10.2 15.0
Others 3.4 4.0
Effective income tax rate 18.7 0.8
In March 2002, the Inland Revenue Department of the HKSAR issued estimated assessments to certain subsidiaries of the Group in respect of
their potential taxation liabilities for prior years. The concerned subsidiaries have formally objected to the estimated assessments as, in the
opinion of the directors of the subsidiaries, these estimated assessments are incorrect. The outcome of the objections has yet to be
determined. The directors consider that it is impracticable to estimate whether it might give rise to any tax liabilities. Accordingly, no
provision has been made in the financial statements for the year ended 31st March 2002.
7. DIVIDENDS
2002 2001
US$ million US$ million
Nil (2001: Final dividend in respect of 2000 of US 12.5 cents per share) —26.9
Final dividend in respect of 2000 of US$26.9 million was satisfied by the payment of cash of US$10.8 million and the balance of US$16.1
million by the allotment of 5,114,154 new ordinary shares in the Company by way of scrip dividend.
The board of directors has not recommended any dividend for the year (2001: nil).
8. EARNINGS/(LOSS) PER SHARE
The calculations of basic and diluted earnings/(loss) per share are based on the Group’s profit attributable to shareholders of US$11.2 million
(2001: loss of US$215.0 million).
The basic earnings/(loss) per share is based on the weighted average of 225.3 million (2001: 222.4 million) ordinary shares in issue during
the year. The diluted earnings/(loss) per share is based on 225.3 million ordinary shares which is the weighted average number of ordinary
shares in issue during the year after adjusting for the weighted average number of ordinary shares deemed to be issued at no consideration
if all outstanding share options and warrants had been exercised at 31st March 2002. No ordinary shares are deemed to be issued at no
consideration during the year.