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Notes to the Financial Statements
VTech Holdings Ltd
Annual Report 2007
44
10 INVESTMENTS
2007 2006
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
11 STOCKS
2007 2006
US$ million US$ million
Telecommunication and
electronic products
Raw materials 34.2 35.7
Work in progress 15.1 13.7
Finished goods 74.8 84.4
124.1 133.8
Stocks carried at net realisable value at 31st March 2007
amounted to US$26.7 million (2006: US$35.0 million).
12 DEBTORS AND PREPAYMENTS
2007 2006
Note
US$ million US$ million
Trade debtors (Net of provision
for doubtful debts of
US$12.5 million
(2006: US$5.4 million)) 178.7 162.9
Other debtors and prepayments 22.6 18.9
Pension assets 15 2.1 1.8
203.4 183.6
An ageing analysis of net trade debtors by transaction date is
as follows:
2007 2006
US$ million US$ million
0-30 days 83.6 90.7
31-60 days 49.1 41.4
61-90 days 27.4 17.0
>90 days 18.6 13.8
Total 178.7 162.9
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.
13 CREDITORS AND ACCRUALS
2007 2006
US$ million US$ million
Trade creditors 101.9 116.8
Other creditors and accruals 154.6 150.9
256.5 267.7
An ageing analysis of trade creditors by transaction date is as
follows:
2007 2006
US$ million US$ million
0-30 days 51.6 52.4
31-60 days 26.2 33.2
61-90 days 15.1 18.5
>90 days 9.0 12.7
Total 101.9 116.8
14 PROVISIONS
At 31st March 2007, provisions of US$47.9 million (2006:
US$49.3 million) include provisions for defective goods
returns of US$43.4 million (2006: US$45.6 million).
Defective
goods returns
US$ million
At 1st April 2006 45.6
Effect of changes in exchange rate 0.3
Additional provisions 44.4
Unused amounts reversed (3.1)
Charged to income statement 41.3
Utilised during the year (43.8)
At 31st March 2007 43.4
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.
12bVtechNotes(E).indd44 2007/7/511:37:51PM