Vtech 2004 Annual Report Download - page 38

36
Notes to the
Financial Statements
VTech Holdings Ltd Annual Report 2004
3 DIRECTORS’ AND SENIOR EXECUTIVES’ EMOLUMENTS
Directors’ emoluments
2004 2003
US$ million US$ million
The emoluments of the directors of the
Company are as follows:
Fees
0.1 0.1
Salaries, allowances and benefits in kind
1.8 1.8
Bonuses
2.7 0.8
Contribution to retirement benefit schemes
0.1 0.1
Deemed profit on share option exercise
— —
Inducement for joining the Group
— —
Compensation for loss of office
— —
4.7 2.8
The table below shows the number of directors whose
emoluments were within the bands stated:
2004 2003
Number of Number of
directors directors
US$
0 — 64,000
4 4
640,001 —704,000
— 1
896,001 —960,000
1 1
1,088,001 —1,152,000
— 1
1,536,001 —1,600,000
1 —
2,112,001 —2,176,000
1 —
7 7
Emoluments of independent non-executive directors included
above amounted to US$60,000 (2003: US$60,000), being wholly in
the form of directors’ fees.
Senior executives’ emoluments The directors’ emoluments set
out above exclude 2 senior executives (2003: 2) whose
emoluments were among the five highest earning employees of
the Group. Details of the emoluments in aggregate for these
executives are set out below:
2004 2003
US$ million US$ million
Salaries, allowances and benefits in kind 0.8 0.9
Bonuses
1.1 1.2
Contribution to retirement benefit schemes
— —
Deemed profit on share option exercise
— —
Inducement for joining the Group
— —
Compensation for loss of office
— —
1.9 2.1
The emoluments fell within the following bands:
2004 2003
Individuals Individuals
US$
448,001 —512,000
— 1
576,001 —640,000
1 —
1,216,001 —1,280,000
1 —
1,650,001 —1,714,000
— 1
2 2
4 NET FINANCE INCOME/(COSTS)
2004 2003
US$ million US$ million
Interest expense
Wholly repayable within five years:
Bank loans and overdrafts
(0.2) (2.1)
Not wholly repayable within five years:
Bank loans
(0.1) (0.1)
Interest income 0.7 1.2
0.4 (1.0)
5 TAXATION
2004 2003
US$ million US$ million
Current tax
— Hong Kong
4.7 6.4
— Overseas
1.4 0.5
(Over)/underprovision in prior years
— Hong Kong
(3.5) 10.8
— Overseas
— (0.3)
Deferred tax
— Origination and reversal of
temporary differences
1.0 —
3.6 17.4
Tax on profits has been calculated at the rates of taxation
prevailing in the countries in which the Group operates.
In previous year, the Group made a provision of US$11.0 million
representing the directors’ best estimate of liability regarding a
dispute with the Hong Kong Inland Revenue Department (“HKIRD”)
over the offshore income claims made by certain subsidiaries of the
Group. The Group reached a compromised settlement agreement
with the HKIRD in April 2004. The overprovision for taxation
resulting from the compromised settlement was credited to the
income statement for the year ended 31st March 2004.