Vtech 2004 Annual Report Download - page 41

39
Notes to the
Financial Statements
VTech Holdings Ltd Annual Report 2004
11 INVESTMENTS
2004 2003
US$ million US$ million
i) Associates
Share of net tangible assets 0.1 0.1
ii) Other investments
Unlisted investments, at cost 0.1 0.1
0.2 0.2
12 STOCKS
2004 2003
US$ million US$ million
Telecommunication and electronic products
Raw materials
27.1 13.9
Work in progress
8.9 4.6
Finished goods
60.1 65.5
96.1 84.0
Stocks carried at net realisable value at 31st March 2004 amounted
to US$25.4 million (2003: US$16.2 million).
13 DEBTORS AND PREPAYMENTS
2004 2003
Note
US$ million US$ million
Trade debtors (Net of provision for
doubtful debts of US$3.9 million
(2003: US$5.8 million))
137.6 123.0
Other debtors and prepayments
14.7 15.1
Pension assets 16
1.6 1.8
153.9 139.9
An ageing analysis of net trade debtors by transaction date is as
follows:
2004 2003
US$ million US$ million
0–30 days 80.8 54.5
31–60 days
34.0 41.6
61–90 days
14.5 10.2
>90 days
8.3 16.7
Total 137.6 123.0
The majority of the Group’s sales are on letter of credit and on
open credit with varying terms of 30 to 90 days. Certain open
credit sales are covered by credit insurance or bank guarantees.
14 CREDITORS AND ACCRUALS
2004 2003
US$ million US$ million
Trade creditors 93.0 59.5
Other creditors and accruals
107.3 111.9
200.3 171.4
An ageing analysis of trade creditors by transaction date is as
follows:
2004 2003
US$ million US$ million
0–30 days 45.6 28.7
31–60 days
23.6 11.5
61–90 days
14.3 11.9
>90 days
9.5 7.4
Total 93.0 59.5
15 PROVISIONS
Other
Defective Restructuring employee
goods returns costs benefits Total
US$ million US$ million US$ million US$ million
At 1st April 2003 36.6 1.8 2.0 40.4
Effect of changes in exchange rate 0.3 ——0.3
Additional provisions 32.7 —2.9 35.6
Unused amounts reversed (2.3 ) ——(2.3 )
Charged to income statement 30.4 —2.9 33.3
Utilised during the year (31.3 ) (1.1 ) (0.9 ) (33.3 )
At 31st March 2004 36.0 0.7 4.0 40.7
Defective goods returns The Group undertakes to repair or
replace items that fail to perform satisfactorily in accordance with
the terms of the sale. A provision is recognised 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 previous years.
Other employee benefits Other employee benefits include
employee compensated leave entitlements which are the expected
costs of accumulated compensated absences and the gratuity
payment to certain employees upon completion of the service
contract.