Vtech 2012 Annual Report Download - page 61

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VTech Holdings Ltd Annual Report 2012
17 Share Capital and Share Options (Continued)
(d) 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 2012 (2011: $nil).
Adjusted capital comprises all components of equity less
unaccrued proposed dividends.
In order to monitor its capital structure, the Group may adjust the
amount of dividends to be paid to shareholders, issue new shares,
return capital to shareholders or raise new debt financing.
The adjusted capital at 31 March 2011 and 31 March 2012 is as follows:
The Group The Company
2012 2011 2012 2011
US$ million US$ million US$ million US$ million
Total equity 556.2 543.9 375.2 335.1
Less: Proposed dividends (149.7) (153.9) (149.7) (153.9)
406.5 390.0 225.5 181.2
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
18 Reserves
(a) The Group
Details of the movements in reserves of the Group during the years ended 31 March 2011 and 31 March 2012 are set out in the
consolidated statement of changes in equity.
(b) The Company
Share
capital Share premium
Shares held
for Share
purchase
Scheme Exchange reserve Capital reserve Revenue reserve Total equity
Note US$ million US$ million US$ million US$ million US$ million US$ million US$ million
At 1 April 2010 12.4 113.3 – (1.2) 1.8 250.4 376.7
Changes in equity for the year ended
31 March 2011
Comprehensive income
Profit for the year – – – – – 142.9 142.9
Total comprehensive income for the year – – – – – 142.9 142.9
Final dividend in respect of the previous year – – – – – (153.9) (153.9)
Interim dividend in respect of the current year 5 – – – – – (39.7) (39.7)
Shares issued under share option scheme – 6.8 – – – – 6.8
Equity-settled share based payments – 1.0 – – 1.3 – 2.3
At 31 March 2011 and 1 April 2011 12.4 121.1 – (1.2) 3.1 199.7 335.1
Changes in equity for the year ended
31 March 2012
Comprehensive income
Profit for the year – – – – – 227.2 227.2
Total comprehensive income for the year – – – – – 227.2 227.2
Final dividend in respect of the previous year 5 – – – – – (154.6) (154.6)
Interim dividend in respect of the current year 5 – – – – – (39.9) (39.9)
Shares issued under share option scheme 0.1 6.2 – – – – 6.3
Equity-settled share based payments – 0.9 – – 1.1 – 2.0
Share purchased for Share Purchase Scheme 17(c) – – (2.7) – – – (2.7)
Vesting of shares of Share Purchase Scheme 17(c) – – 1.8 – – – 1.8
At 31 March 2012 12.5 128.2 (0.9) (1.2) 4.2 232.4 375.2
The consolidated profit attributable to shareholders includes a profit of US$227.2 million (2011: US$142.9 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$232.4 million (2011: US$199.7 million).