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50 VTech Holdings Ltd Annual Report 2011
Notes to the Financial Statements
13 Deposits and Cash
The Group The Company
2011
US$ million
2010
US$ million
2011
US$ million
2010
US$ million
Short term bank deposits 210.3 269.6 ––
Cash at bank and in hand 122.8 113.0 0.3 0.3
Deposits and cash 333.1 382.6 0.3 0.3
Less: bank deposits with maturity greater than three months (90.0) (185.7) ––
Cash and cash equivalents in the consolidated statement
of cash flows 243.1 196.9 0.3 0.3
Deposits and cash as at 31 March 2011 include US$26.6 million equivalent (2010: US$23.9 million) placed with banks in the PRC, the
remittance of which is subject to relevant rules and regulations of foreign exchange control promulgated by the PRC government.
14 Creditors and Accruals
The Group The Company
Note
2011
US$ million
2010
US$ million
2011
US$ million
2010
US$ million
Trade creditors 14(a) 142.6 136.0 ––
Other creditors and accruals 14(b) 142.2 136.9 0.5 1.8
Forward foreign exchange contracts held as fair value
through profit or loss 19(b) & (d) 0.1 –––
284.9 272.9 0.5 1.8
(a) Ageing Analysis
An ageing analysis of trade creditors by transaction date is as
follows:
2011
US$ million
2010
US$ million
0-30 days 80.1 70.1
31-60 days 33.0 35.8
61-90 days 19.6 20.9
>90 days 9.9 9.2
Total 142.6 136.0
(b) Other creditors and accruals
Other creditors and accruals comprised largely of accruals in
staff costs, advertising and promotion expenses, rebates and
allowances to customers, and miscellaneous operating expenses.
Other creditors and accruals are expected to be settled within
one year or are repayable on demand.
15 Provisions
At 31 March 2011, provisions of US$39.4 million (2010: US$42.4
million) include provisions for defective goods returns of US$34.5
million (2010: US$37.7 million).
Note
Defective
goods
returns
US$ million
At 1 April 2010 37.7
Effect of changes in exchange rates 0.1
Additional provisions 26.8
Unused amounts reversed (0.1)
Charged to the consolidated income
statement 2 26.7
Utilised during the year (30.0)
At 31 March 2011 34.5
The Group undertakes to repair or replace items that fail to
perform satisfactorily in accordance with the terms of the sales.
A 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.