Vtech 2010 Annual Report Download - page 55

VTech Holdings Ltd Annual Report 2010 53
10 Investments
2010 2009
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
(a) Inventories in the consolidated balance sheet comprise:
2010 2009
US$ million US$ million
Raw materials 67.5 31.7
Work in progress 19.6 14.0
Finished goods 72.2 82.3
159.3 128.0
Stocks carried at net realisable value at 31 March 2010 amounted
to US$16.8 million (2009: US$26.4 million).
(b) The analysis of the amount of inventories recognised as
an expense and included in the consolidated income
statement is as follows:
2010 2009
US$ million US$ million
Carrying amount of
inventories sold 972.9 922.2
Write-down of inventories 7.2 3.3
Reversal of write-down
of inventories (7.2) (4.8)
972.9 920.7
The reversal of write-down of inventories made in prior years
arose due to an increase in estimated net realisable value of
certain products as a result of change in consumer preferences.
12 Debtors, Deposits and Prepayments
2010 2009
Note US$ million US$ million
Trade debtors (Net of
provision for doubtful
debts of US$8.8 million
(2009: US$7.7 million)) 185.7 154.0
Other debtors, deposits
and prepayments 24.0 33.7
Pension assets 17 1.7 2.5
211.4 190.2
Ageing Analysis
An ageing analysis of net trade debtors by transaction date is as
follows:
2010 2009
US$ million US$ million
0-30 days 101.4 67.2
31-60 days 53.8 43.4
61-90 days 28.4 22.6
>90 days 2.1 20.8
Total 185.7 154.0
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.
Impairment of trade debtors
Impairment losses in respect of trade debtors are recorded using
an allowance account unless the Group is satisfied that recovery
of the amount is remote, in which case the impairment loss is
written off against trade debtors directly.
The movement in the allowance for doubtful debts during the
year, including both specific and collective loss components, is as
follows:
2010 2009
Note US$ million US$ million
At 1 April 7.7 9.7
Impairment loss recognised 2 3.6 1.7
Uncollectible amounts
written off (2.8) (3.1)
Effect of changes in
exchange rates 0.3 (0.6)
At 31 March 8.8 7.7
Trade debtors that are not impaired
As at 31 March 2010, 95% (2009: 94%) of the Group’s trade
debtors were not impaired, of which 100% (2009: 98%) was either
not past due or less than two months past due. Based on past
experience of the Group, it is determined that no impairment
allowance is necessary in respect of these balances as these are
considered to be fully recoverable. The Group does not hold any
collateral over these balances.
13 Financial Assets at Fair Value through
Profit or Loss
Financial assets at fair value through profit or loss at 31 March
2009 represented currency-linked deposits. Their fair values were
determined based on the quoted prices provided by securities
brokers for equivalent instruments at the balance sheet date. The
currency-linked deposits were principal protected and matured
in April 2009.