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54 VTech Holdings Ltd Annual Report 2010
Notes to the Financial Statements
14 Deposits and Cash
2010 2009
US$ million US$ million
Short term bank deposits 269.6 192.0
Cash at bank and in hand 113.0 95.2
Deposits and cash 382.6 287.2
Less: bank deposits with
maturity greater than 3 months (185.7) (45.0)
Cash and cash equivalents
in the consolidated cash
flow statement 196.9 242.2
Deposits and cash as at 31 March 2010 include US$23.9 million
equivalent (2009: US$5.7 million) placed with banks in the
PRC, the remittance of which is subject to relevant rules and
regulations of foreign exchange control promulgated by the PRC
government.
15 Creditors and Accruals
2010 2009
Note US$ million US$ million
Trade creditors 136.0 102.4
Other creditors and
accruals 136.9 130.2
Derivative financial
instruments held as
cash flow hedging
instruments 20(b) & (d) – 0.3
272.9 232.9
An ageing analysis of trade creditors by transaction date is as
follows:
2010 2009
US$ million US$ million
0-30 days 70.1 49.2
31-60 days 35.8 30.9
61-90 days 20.9 10.2
>90 days 9.2 12.1
Total 136.0 102.4
16 Provisions
At 31 March 2010, provisions of US$42.4 million (2009: US$41.8
million) include provision for defective goods returns of
US$37.7 million (2009: US$37.0 million).
Defective
goods
returns
Note US$ million
At 1 April 2009 37.0
Effect of changes in exchange rates 0.1
Additional provisions 37.0
Unused amounts reversed (2.9)
Charged to consolidated income statement 2 34.1
Utilised during the year (33.5)
At 31 March 2010 37.7
The Group undertakes to repair or replace items that fail to
perform satisfactorily in accordance with the terms of the
sales. 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.
17 Pension Schemes
The Group operated a defined benefit scheme and a defined
contribution scheme in Hong Kong. The defined contribution
scheme operated in Hong Kong complied with the requirements
under the Mandatory Provident Fund (“MPF”) Ordinance. For the
defined contribution schemes operated for overseas employees
and Hong Kong employees under the MPF Ordinance, the
retirement benefit costs expensed in the consolidated income
statement amounted to US$4.9 million (2009: US$4.4 million)
and US$0.5 million (2009: US$0.5 million) respectively. For the
defined benefit scheme (the “Scheme”) operated for Hong Kong
employees, contributions made by the Group during the year
were calculated based on advice from Watson Wyatt Hong
Kong Limited, a Towers Watson company (“Towers Watson”),
independent actuaries and consultants. The Scheme is valued
annually. The latest actuarial valuation was completed by
Towers Watson as at 31 March 2010 using the projected unit
credit method.