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58 VTech Holdings Ltd Annual Report 2010
Notes to the Financial Statements
18 Share Capital and Share Options (Continued)
(c) Capital Management
The Group’s primary objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, so that it
can continue to provide returns for shareholders and benefits for other stakeholders, by pricing products and services commensurately
with the level of risk and by securing access to finance at a reasonable cost.
The Group actively and regularly reviews and manages its capital structure to maintain a balance between the higher shareholder
returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position,
and makes adjustments to the capital structure in light of changes in economic conditions.
The Group has no bank borrowings as at 31 March 2010 (2009: $nil). Adjusted capital comprises all components of equity less
unaccrued proposed dividends.
In order to monitor its capital structure, the Group may adjust the amount of dividends to be paid to shareholders, issue new shares,
return capital to shareholders or raise new debt financing.
The adjusted capital at 31 March 2010 and 31 March 2009 is as follows:
Group Company
2010 2009 2010 2009
US$ million US$ million US$ million US$ million
Total equity 517.5 440.2 376.7 386.2
Less: Proposed dividends (153.1) (100.8) (153.1) (100.8)
364.4 339.4 223.6 285.4
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
19 Reserves
(a) The Group
Details of the movements in reserves of the Group during the years ended 31 March 2010 and 31 March 2009 are set out in the
consolidated statement of changes in equity.
(b) The Company
Share Share Exchange Capital Revenue Total
capital premium reserve Reserve Reserve equity
Note US$ million US$ million US$ million US$ million US$ million US$ million
At 1 April 2008 12.1 98.3 (1.2) 1.8 135.7 246.7
Total comprehensive income for the year – – – – 285.7 285.7
Final dividend in respect of the previous year – – – – (125.4) (125.4)
Interim dividend in respect of the current year 5 – – – – (29.5) (29.5)
Shares issued under share option scheme 18(a) 0.2 6.7 – – – 6.9
Equity-settled share based payments – 1.9 – (0.1) – 1.8
At 31 March 2009 and 1 April 2009 12.3 106.9 (1.2) 1.7 266.5 386.2
Total comprehensive income for the year – – – – 124.6 124.6
Final dividend in respect of the previous year 5 – – – – (101.2) (101.2)
Interim dividend in respect of the current year 5 – – – – (39.5) (39.5)
Shares issued under share option scheme 18(a) 0.1 5.7 – – – 5.8
Equity-settled share based payments – 0.7 – 0.1 – 0.8
At 31 March 2010 12.4 113.3 (1.2) 1.8 250.4 376.7
The consolidated profit attributable to shareholders includes a profit of US$124.6 million (2009: US$285.7 million) which has been dealt
with in the financial statements of the Company.
Reserves of the Company available for distribution to shareholders amounted to US$250.4 million (2009: US$266.5 million).