Vtech 2006 Annual Report Download - page 45

Download and view the complete annual report

Please find page 45 of the 2006 Vtech annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 61

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61

Notes to the Financial Statements
VTech Holdings Ltd Annual Report 200642
4 Net Finance Income
2006 2005
US$ million US$ million
Interest expenses on bank loans
and overdrafts which are:
– Wholly repayable within
five years –(0.2)
– Not wholly repayable within
five years –(0.1)
Interest income 3.9 1.3
3.9 1.0
5 Taxation
2006 2005
Note US$ million US$ million
Current tax
– Hong Kong 10.5 5.5
– Overseas 1.4 1.6
Under/(Over)-provision in
respect of prior years
– Hong Kong –(0.4)
– Overseas 0.5 (0.1)
Deferred tax
– Origination and reversal of
temporary differences 10 (1.1) 0.2
11.3 6.8
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 2006 was 8.1% (2005: 10.7%). The effective
income tax rate is reconciled to the statutory domestic income
tax rate as follows:
2006 2005
%%
Statutory domestic income tax rate 17.5 17.5
Difference in overseas income
tax rates 0.2 –
Non-temporary differences (7.7) (7.1)
Tax losses not recognised 1.4 4.1
Under/(over)-provision in prior years 0.4 (0.8)
Others (3.7) (3.0)
Effective income tax rate 8.1 10.7
6 Dividends
2006 2005
Note US$ million US$ million
Interim dividend of US6.0 cents
(2005: US1.0 cent)
per share declared and paid 18 14.3 2.3
Final dividend of US26.0 cents
(2005: US12.0 cents)
per share proposed after
the balance sheet date 18 62.1 27.3
The final dividend proposed after the balance sheet date has
not been recognised as a liability at the balance sheet date.
The final dividend of US12.0 cents per share for the year ended
31st March 2005, but proposed after that date, was estimated
to be US$27.3 million at the time, payable to shareholders,
whose names appeared on the register of members of the
Company at the close of business on 12th August 2005. This
final dividend was approved by shareholders at the Annual
General Meeting on 12th August 2005. As a result of shares
issuance upon exercise of share options during the period
between 1st April 2005 and 12th August 2005 (note 17), the
final dividend paid in respect of the year ended 31st March
2005 totaled US$28.0 million.
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$128.8 million (2005: US$56.9 million).
The basic earnings per share is based on the weighted
average of 234.4 million (2005: 225.6 million) ordinary shares
in issue during the year. The diluted earnings per share is
based on 236.9 million (2005: 228.9 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 and under the employee share
option scheme.
2006 2005
million million
Weighted average number of
ordinary shares at 31st March 234.4 225.6
Effect of deemed issue of shares
under the company’s share option
scheme for nil consideration 2.5 3.3
Weighted average number of
ordinary shares (diluted) at
31st March 236.9 228.9