Vtech 2002 Annual Report Download - page 56

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VTech Holdings Ltd54
Notes to the Financial Statements
19. PROVISIONS
Employee
Defective Restructuring compensated leave
goods returns costs entitlements Total
US$ million US$ million US$ million US$ million
At 1st April 2001 35.2 30.3 0.8 66.3
Additional provisions 27.1 9.2 1.2 37.5
Unused amounts reversed (10.3) (0.5) (0.1) (10.9)
Charged to income statement 16.8 8.7 1.1 26.6
Utilized during the year (19.0) (34.4) (0.4) (53.8)
At 31st March 2002 33.0 4.6 1.5 39.1
Defective goods returns
The Group undertakes to repair or replace items that fail to perform satisfactorily. A provision is recognized 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.
Restructuring costs
Restructuring costs include the costs of terminating employees and other closure costs relating to the cessation or streamlining of business
activities arising from the restructuring plan launched in March 2001. Details of the plan have been provided in the annual financial
statements for the year ended 31st March 2001.
20. SHARE CAPITAL, SHARE OPTIONS AND WARRANTS
Share Capital
2002 2001
US$ million US$ million
Authorized
Ordinary shares:
400,000,000 (2001: 400,000,000) of US$0.05 each 20.0 20.0
2002 2001
Number of shares US$ million US$ million
Issued and fully paid
Ordinary shares of US$0.05 each:
Balance as at 1st April 2001 225,151,233 11.3 10.7
Issued on acquisition of a subsidiary ——0.3
Placing of shares (Note) 375,900 ——
Issued in lieu of scrip dividend ——0.3
Balance as at 31st March 2002 225,527,133 11.3 11.3
Note: On 27th September 2001, 375,900 new ordinary shares of the Company of US$0.05 each were placed to an independent third party on that date at a
premium of US$0.22 each. The placing was completed in October 2001 and 375,900 new ordinary shares were alloted and issued to the placee.