Vtech 2012 Annual Report Download - page 52

50 VTech Holdings Ltd Annual Report 2012
Notes to the Financial Statements
4 Taxation
2012 2011
Note US$ million US$ million
Current tax
– Hong Kong 14.6 16.2
– Overseas 5.6 4.7
Over-provision in respect of
prior years
– Hong Kong –(1.2)
– Overseas –(0.7)
Deferred tax
– Origination and reversal
of temporary
differences 10(b) (0.5) 0.1
19.7 19.1
(a) Hong Kong Profits Tax has been calculated at the rate of 16.5%
(2011: 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 2012 was 9.3% (2011: 8.7%). The effective income tax rate
is reconciled to the statutory domestic income tax rate as follows:
2012 2011
%%
Statutory domestic income tax rate 16.5 16.5
Difference in overseas income tax rates 1.1 0.7
Tax effect of non-temporary differences (6.5) (7.0)
Tax losses not recognised 0.1 0.1
Others (1.9) (1.6)
Effective income tax rate 9.3 8.7
(d) Included in the consolidated statement of comprehensive
income for the year ended 31 March 2012 was US$9.1 million
(2011: US$1.3 million) related to the surplus on revaluation of
properties which was derived at after the related tax expense
of US$1.9 million (2011: US$0.3 million).
5 Dividends
2012 2011
Note US$ million US$ million
Interim dividend of US16.0
cents (2011: US16.0 cents)
per share declared and paid 18 39.9 39.7
Final dividend of US60.0 cents
(2011: US62.0 cents) per
share proposed after
the balance sheet date 18 149.7 153.9
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 31 May 2011, the directors proposed a final
dividend of US62.0 cents per ordinary share for the year ended
31 March 2011, which was estimated to be US$153.9 million at the
time calculated on the basis of the ordinary shares in issue as at
31 March 2011. The final dividend was approved by shareholders at
the annual general meeting on 22 July 2011. As a result of shares
issuance upon exercise of share options during the period between
1 April 2011 and 22 July 2011, the final dividend paid in respect of
the year ended 31 March 2011 totaled US$154.6 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$191.9 million (2011: US$202.0 million).
The calculation of basic earnings per share is based on the
weighted average of 249.1 million (2011: 247.9 million) ordinary
shares in issue during the year after adjusting for shares held for
Share Purchase Scheme.
The calculation of diluted earnings per share is based on
249.4 million (2011: 248.9 million) ordinary shares which is the
weighted average number of ordinary shares in issue during the
year after adjusting for share held for Share Purchase Scheme and
the number of dilutive potential ordinary shares under the
Company’s share option scheme.
2012 2011
Profit attributable to shareholders
(US$ million) 191.9 202.0
Weighted average number of ordinary
shares in issue less shares held for
Share Purchase Scheme (in million) 249.1 247.9
Effect of deemed issue of shares under
the Company’s share option scheme
for nil consideration (in million) 0.4 1.0
Effect of shares held for Share Purchase
Scheme (in million) (0.1) –
Weighted average number of ordinary
shares (diluted) (in million) 249.4 248.9
Diluted earnings per share (US cents) 76.9 81.2