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Notes to the Financial Statements
42 VTech Holdings Ltd Annual Report 2005
4 Directors’ and Senior Executives’
Emoluments
Directors’ emoluments
2005 2004
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 1.4 1.8
Bonuses 3.0 2.7
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 ——
4.6 4.7
The table below shows the number of directors whose
emoluments were within the bands stated:
2005 2004
Number of Number of
directors directors
US$
0 – 64,000 44
896,001 – 960,000 —1
1,344,001 – 1,408,000 1—
1,536,001 – 1,600,000 —1
2,112,001 – 2,176,000 —1
3,136,001 – 3,200,000 1—
67
Emoluments of independent non-executive directors included
above amounted to US$60,000 (2004: US$60,000), being wholly
in the form of directors’ fees.
Senior executives’ emoluments The directors’
emoluments set out above exclude 3 senior executives (2004: 2)
whose emoluments were among the five highest earning
employees of the Group. Details of the emoluments in
aggregate for these executives are set out below:
2005 2004
US$ million US$ million
Salaries, allowances and benefits in kind 0.9 0.8
Bonuses 2.6 1.1
Contribution to retirement benefit
schemes 0.1 —
Deemed profit on share option exercise ——
Inducement for joining the Group ——
Compensation for loss of office ——
3.6 1.9
The emoluments fell within the following bands:
2005 2004
Individuals Individuals
US$
576,001 – 640,000 —1
640,001 – 704,000 2—
1,216,001 – 1,280,000 —1
2,176,001 – 2,240,000 1—
32
5 Net Finance Income
2005 2004
US$ million US$ million
Interest expenses on bank loans and
overdrafts which are:
— Wholly repayable within five years (0.2) (0.2)
— Not wholly repayable within
five years (0.1) (0.1)
Interest income 1.3 0.7
1.0 0.4
6 Taxation
2005 2004
US$ million US$ million
Current tax
— Hong Kong 5.5 4.7
— Overseas 1.6 1.4
Overprovision in respect of prior years
— Hong Kong (0.4) (3.5)
— Overseas (0.1) —
Deferred tax
— Origination and reversal of
temporary differences 0.2 1.0
6.8 3.6
Tax on profits has been calculated at the rates of taxation
prevailing in the countries in which the Group operates.
The consolidated effective income tax rate for the year ended
31st March 2005 was 10.7% (2004: 7.2%). The effective income tax
rate is reconciled to the statutory domestic income tax rate as follow:
2005 2004
%%
Statutory domestic income tax rate 17.5 17.5
Difference in overseas income tax rates —0.2
Non-temporary differences (7.1) (4.3)
Tax losses not recognised 4.1 1.0
Overprovision in prior years (0.8) (6.9)
Others (3.0) (0.3)
Effective income tax rate 10.7 7.2