Vtech 2004 Annual Report Download - page 39

37
Notes to the
Financial Statements
VTech Holdings Ltd Annual Report 2004
5 TAXATION (continued)
The consolidated effective income tax rate for the year ended 31st
March 2004 was 7.2% (2003: 29.8%). This effective income tax rate
is reconciled to the statutory domestic income tax rate as follow:
2004 2003
% %
Statutory domestic income tax rate 17.5 16.0
Difference in overseas income tax rates 0.2 0.2
Non-temporary differences (4.3) (9.8)
Tax loss not recognised 1.0 5.7
(Over)/underprovision in prior years (6.9) 18.0
Others (0.3) (0.3)
Effective income tax rate 7.2 29.8
6 DIVIDENDS
2004 2003
Note US$ million US$ million
Interim dividend of US3.0 cents
(2003: US1.5 cents) per share
declared and paid 19 6.8 3.4
Final dividend of US7.0 cents
(2003: US2.0 cents) per share
proposed after the
balance sheet date 19 15.8 4.5
The final dividend proposed after the balance sheet date has not
been recognised as a liability at the balance sheet date.
7 EARNINGS PER SHARE The calculations of basic and diluted earnings per share are based on the Group’s profit attributable to shareholders
of US$46.3 million (2003: US$40.8 million).
The basic earnings per share is based on the weighted average of 225.5 million (2003: 225.5 million) ordinary shares in issue during the year.
The diluted earnings per share is based on 226.0 million (2003: 225.5 million) ordinary shares which is the weighted average number of
ordinary shares in issue during the year after adjusting for the number of dilutive potential ordinary shares arising from the outstanding
warrants and under the employee share option scheme.
8 TANGIBLE ASSETS
Motor vehicles,
Moulds, furniture and
machinery fixtures and
Land and and leasehold Construction
buildings equipment improvements in progress Total
US$ million US$ million US$ million US$ million US$ million
Cost or valuation
At 1st April 2003 37.0 177.8 58.8 —273.6
Additions —10.5 6.0 3.0 19.5
Disposals (0.4) (4.6) (7.0) —(12.0)
Effect of changes in exchange rate 1.2 1.1 0.8 —3.1
At 31st March 2004 37.8 184.8 58.6 3.0 284.2
Accumulated depreciation
At 1st April 2003 16.4 158.5 50.7 —225.6
Charge for the year 1.6 11.1 5.2 —17.9
Disposals —(3.4) (6.2) —(9.6)
Effect of changes in exchange rate —0.9 0.7 —1.6
At 31st March 2004 18.0 167.1 50.4 —235.5
Net book value at 31st March 2004 19.8 17.7 8.2 3.0 48.7
Net book value at 31st March 2003 20.6 19.3 8.1 —48.0
Cost or valuation of tangible assets is analysed as follows:
At cost 25.0 184.8 58.6 3.0 271.4
At professional valuation — 2003 (note (c)) 12.8 ———12.8
37.8 184.8 58.6 3.0 284.2
(a) Leased machinery and equipment The Group leases machinery and equipment under a number of finance lease arrangements. At the end of each of the leases the Group has the
option to purchase the equipment at a beneficial price. At 31st March 2004, the net book value of tangible assets held under finance leases amounted to US$0.2 million (2003: US$0.3 million).
(b) Security The net book value of tangible assets pledged as security for borrowings at 31st March 2004 amounted to US$2.6 million (2003: US$ 2.5 million).
(c) The amount included valuation of overseas freehold land and buildings denominated in Euro dollar which were last revalued by independent valuers as at 31st March 2003.
The carrying value of these properties in US dollars as at 31st March 2004 is changed due to the effect of changes in exchange rates.