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46 VTech Holdings Ltd Annual Report 2009
NOTES TO THE FINANCIAL STATEMENTS
9 DEFERRED TAX
The deferred tax assets and liabilities and the deferred tax account movements for the years ended 31st March 2008 and
31st March 2009 are attributable to the following items:
1st April
2007
Credited/
(charged) to
consolidated
income
statement
31st March
2008
and
1st April
2008
Credited/
(charged) to
consolidated
income
statement
Charged
to reserve
31st March
2009
US$ million US$ million US$ million US$ million US$ million US$ million
Deferred tax assets
Tax losses carried forward 2.5 0.8 3.3 (0.9) –2.4
Other deductible temporary differences 3.0 0.6 3.6 (0.8) –2.8
5.5 1.4 6.9 (1.7) –5.2
Deferred tax liabilities
Accelerated tax depreciation (2.0) (0.2) (2.2) 1.3 –(0.9)
Revaluation of properties (2.0) –(2.0) –(0.9) (2.9)
Others (0.2) (0.1) (0.3) (0.2) –(0.5)
(4.2) (0.3) (4.5) 1.1 (0.9) (4.3)
Net deferred tax assets 1.3 1.1 2.4 (0.6) (0.9) 0.9
Deferred tax assets and liabilities are offset when they relate
to income taxes levied by the same taxation authority on the
same taxable entity. The following amounts are shown in the
consolidated balance sheet:
2009 2008
US$ million US$ million
Deferred tax assets 5.2 6.9
Deferred tax liabilities (4.3) (4.5)
0.9 2.4
Deferred tax assets are recognised for tax losses carried
forward to the extent that realisation of the related tax
benefit through future taxable profits is probable. Deferred
tax assets of US$22.9 million (2008: US$22.9 million) arising
from unused tax losses sustained in the operations of certain
subsidiaries of US$85.1 million (2008: US$85.5 million) have
not been recognised as the availability of future taxable
profits against which the assets can be utilised is not
considered to be probable at 31st March 2009.
10 INVESTMENTS
2009 2008
US$ 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
2009 2008
US$ million US$ million
Telecommunication and
electronic products
Raw materials 31.7 39.8
Work in progress 14.0 11.0
Finished goods 82.3 81.6
128.0 132.4
Stocks carried at net realisable value at 31st March 2009
amounted to US$26.4 million (2008: US$43.1 million).
12 DEBTORS AND PREPAYMENTS
2009 2008
Note US$ million US$ million
Trade debtors (Net of
provision for doubtful
debts of US$7.7 million
(2008: US$9.7 million)) 154.0 182.2
Other debtors and
prepayments 33.7 44.5
Pension assets 17 2.5 2.5
190.2 229.2
Ageing Analysis
An ageing analysis of net trade debtors by transaction date
is as follows:
2009 2008
US$ million US$ million
0-30 days 67.2 88.8
31-60 days 43.4 48.1
61-90 days 22.6 30.3
>90 days 20.8 15.0
Total 154.0 182.2
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.