Vtech 2007 Annual Report Download - page 33

VTech Holdings Ltd
Annual Report 2007 31
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31st March 2007
2007 2006
Note
US$ million US$ million
Operating activities
Operating profi t 194.0 136.2
Depreciation charges 2 24.2 19.0
Amortisation of leasehold
land payments 2 0.1 0.1
Loss on disposal of
tangible assets 2 1.3 0.6
Decrease/(increase) in stocks 9.7 (9.6)
Increase in debtors
and prepayments (19.8) (7.9)
(Decrease)/increase in
creditors and accruals (11.2) 36.4
(Decrease)/increase in provisions (1.4) 8.1
Cash generated from
operations 196.9 182.9
Interest received 7.5 3.9
Taxes paid (15.1) (10.6)
Net cash generated from
operating activities 189.3 176.2
Investing activities
Proceeds from disposal of
tangible assets 0.2 0.2
Purchase of tangible assets 7 (37.2) (31.5)
Purchase of leasehold
land payments 8 – (0.6)
Net cash used in
investing activities (37.0) (31.9)
Financing activities
Net repayment of borrowings – (0.2)
Proceeds from issued shares
upon exercise of
share options 0.4 13.2
Proceeds from issued shares
upon exercise of warrants – 3.3
Dividends paid 5 (155.3) (42.3)
Net cash used in fi nancing
activities (154.9) (26.0)
Effect of exchange rate changes 6.7 0.2
Increase in cash and cash
equivalents 4.1 118.5
Cash and cash equivalents
at beginning of the year 242.4 123.9
Cash and cash equivalents at
end of the year 246.5 242.4
Analysis of the balance of cash
and cash equivalents
Cash at bank and deposits 246.5 242.4
The notes on pages 31 to 52 form part of these fi nancial
statements.
PRINCIPAL ACCOUNTING POLICIES
A Principal Activities and Organisation
The Group’s principal activities and separable segments are set
out in note 1 to the fi nancial statements.
The Company was incorporated in Bermuda. In view of the
international nature of the Group’s operations, the fi nancial
statements are presented in United States dollar.
B Statement of Compliance
The accompanying fi nancial statements have been prepared in
accordance with International Financial Reporting Standards
(“IFRS”) promulgated by the International Accounting
Standards Board. IFRS includes International Accounting
Standards (“IAS”) and related Interpretations. These fi nancial
statements also comply with the disclosure requirements of
the Hong Kong Companies Ordinance and the applicable
disclosure provisions of the Rules Governing the Listing of
Securities on The Stock Exchange of Hong Kong Limited and
the Bermuda Companies Act 1981.
The accounting policies described in note (C) to (Y) have been
consistently applied by the Group.
C Basis of Preparation of the Financial Statements
These fi nancial statements are prepared on the historical cost
basis as modifi ed by the revaluation of certain properties.
The preparation of the fi nancial statements in conformity with
IFRS requires management to make judgements, estimates
and assumptions that affect the application of policies and
reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the fi nancial
statements and the reported amounts of revenues and
expenses during the reporting period. The estimates and
associated assumptions are based on historical experience
and various other factors that are believed to be reasonable
under the circumstances, the results of which form the basis
of making the judgements about carrying values of assets and
liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if
the revision affects only that period or in the period of the
revision and future periods if the revision affects both current
and future periods.
Judgements and accounting estimates made by management
in the application of IFRS that have a signifi cant effect on the
fi nancial statements are described in note 25.
Notes to the Financial
Statements
12aVtechCFS&Notes(E).indd31 2007/7/511:43:21PM