Vtech 2011 Annual Report Download - page 47

VTech Holdings Ltd Annual Report 2011 45
4 Taxation
Note
2011
US$ million
2010
US$ million
Current tax
– Hong Kong 16.2 17.3
– Overseas 4.7 4.2
Over-provision in respect of
prior years
– Hong Kong (1.2) (0.3)
– Overseas (0.7) –
Deferred tax
– Origination and reversal
of temporary differences 10(b) 0.1 (1.0)
19.1 20.2
(a) Hong Kong Profits Tax has been calculated at the rate of
16.5% (2010: 16.5%) on the estimated assessable profit for
the year.
(b) Overseas taxation has been calculated at the rates of taxation
prevailing in the countries in which the Group operates.
(c) Reconciliation between the effective income tax rate and the
statutory domestic income tax rate.
The consolidated effective income tax rate for the year ended
31 March 2011 was 8.7% (2010: 9.0%). The effective income tax rate
is reconciled to the statutory domestic income tax rate as follows:
2011
%
2010
%
Statutory domestic income tax rate 16.5 16.5
Difference in overseas income
tax rates 0.7 0.8
Non-temporary differences (7.0) (6.8)
Tax losses not recognised 0.1 –
Others (1.6) (1.5)
Effective income tax rate 8.7 9.0
(d) Included in the consolidated statement of comprehensive
income for the year ended 31 March 2011 was US$1.3 million
related to surplus on revaluation of properties which was
derived at after the related tax expense of US$0.3 million.
5 Dividends
Note
2011
US$ million
2010
US$ million
Interim dividend of
US16.0 cents
(2010: US16.0 cents)
per share declared
and paid 18 39.7 39.5
Final dividend of
US62.0 cents
(2010: US62.0 cents)
per share proposed
after the balance
sheet date 18 153.9 153.1
The final dividend proposed after the balance sheet date has not
been recognised as a liability at the balance sheet date.
At a meeting held on 14 June 2010, the directors proposed a final
dividend of US62.0 cents per ordinary share for the year ended
31 March 2010, which was estimated to be US$153.1 million
at the time calculated on the basis of the ordinary shares in
issue as at 31 March 2010. The final dividend was approved by
shareholders at the annual general meeting on 30 July 2010.
As a result of shares issuance upon exercise of share options
during the period between 1 April 2010 and 30 July 2010, the
final dividend paid in respect of the year ended 31 March 2010
totaled US$153.9 million.
6 Earnings Per Share
The calculations of basic and diluted earnings per share are
based on the Group's profit attributable to shareholders of the
Company of US$202.0 million (2010: US$206.5 million).
The basic earnings per share is based on the weighted average
of 247.9 million (2010: 246.6 million) ordinary shares in issue
during the year. The diluted earnings per share is based on 248.9
million (2010: 247.7 million) ordinary shares which is the weighted
average number of ordinary shares in issue during the year after
adjusting for the number of dilutive potential ordinary shares
under the Company’s share option scheme.
2011
million
2010
million
Weighted average number
of ordinary shares at 31 March 247.9 246.6
Effect of deemed issue of shares
under the Company's share
option scheme for nil
consideration 1.0 1.1
Weighted average number of ordinary shares (diluted) at 31 March 248.9 247.7
Weighted average number of
ordinary shares (diluted)
at 31 March 248.9 247.7
During the year ended 31 March 2011, no share was purchased,
granted and awarded under the Share Purchase Scheme.
Accordingly, no adjustment to the diluted earnings per share is
made in respect of the Share Purchase Scheme (Note 17(c)).