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63
VTech Holdings Ltd Annual Report 2012
21 Contingent Liabilities
The directors have been advised that certain accusations of
infringements of patents have been lodged against the Company
and its subsidiaries. In the opinion of the legal counsel, it is too
early to evaluate the outcome of these claims and provisions have
been made only to the extent that the amounts can be reliably
estimated. Certain subsidiaries of the Group are involved in
litigation arising in the ordinary course of their respective
businesses.
Having reviewed outstanding claims and taking into account legal
advice received, the directors are of the opinion that even if the
claims are found to be valid, there will be no material adverse effect
on the financial position of the Group.
As at 31 March 2012, there were contingent liabilities in respect of
guarantees given by the Company on behalf of subsidiaries relating
to overdrafts, short term loans and credit facilities of up to US$244.5
million (2011: US$244.5 million). The Company has not recognised
any deferred income for the guarantees given in respect of
borrowings and other banking facilities for subsidiaries as their fair
value cannot be reliably measured and their transaction price was
US$Nil.
As at 31 March 2012, the directors do not consider it is probable
that a claim will be made against the Company under any of the
guarantees.
22 Investment in Subsidiaries and Amounts due from/(to) Subsidiaries
(a) Details of the Company’s interest in those subsidiaries which materially affect the results or assets of the Group as at 31 March 2012
are set out below:
Name of subsidiary Fully paid issued
share capital
Percentage of
interest held by
the Group Principal activity
Incorporated/established and operating in Hong Kong:
VTech Communications Limited Ordinary HK$1,000
Deferred HK$5,000,000 *100 Design, manufacture and
sale of electronic products
VTech Electronics Limited Ordinary HK$5,000,000 *100 Design, manufacture and
distribution of electronic products
VTech Telecommunications Limited Ordinary HK$1,000
Deferred HK$5,000,000 *100 Design, manufacture and distribution
of telecommunication products
Perseus Investments Limited Ordinary HK$1,000
Deferred HK$1,000 100 Property holding
Valentia Investment Limited Ordinary HK$1,000
Deferred HK$1,000 100 Property holding
Incorporated/established and operating in Australia:
VTech Telecommunications (Australia) Pty Limited AUD1 *100 Sale of telecommunication products
Incorporated/established and operating in Canada:
VTech Technologies Canada Ltd. Class A CAD5,000
Class B CAD195,000 *100
*100 Sale of telecommunication and
electronic products
Incorporated/established and operating in France:
VTech Electronics Europe S.A.S. EUR450,000 *100 Sale of electronic products
Incorporated/established and operating in Germany:
VTech Electronics Europe GmbH EUR500,000 *100 Sale of electronic products
VTech IAD GmbH EUR25,000 *100 Development of broadband
connectivity software
Incorporated/established and operating in
the Netherlands:
VTech Electronics Europe B.V. EUR18,100 *100 Sale of electronic products