Vtech 2013 Annual Report Download - page 10

8VTech Holdings Ltd Annual Report 2013
Management Discussion and Analysis Financial Review
Trade debtors as of 31 March 2013 were US$224.9 million, increased from US$210.6
million as of 31 March 2012. Debtor turnover days rose from 56 days to 62 days.
The increase in the trade debtor balance as at 31 March 2013 was mainly due to an
increase in revenue in the fourth quarter of the financial year 2013 compared with the
corresponding period of the previous financial year. The Group has tight management
on credit exposure. The amounts with overdue balances greater than 30 days accounted
for 1.8% of the gross trade debtors as of 31 March 2013.
As at 31 March 2013 and 2012
All figures are in US$ million unless stated otherwise 2013 2012
Trade debtors 224.9 210.6
Average trade debtors as a percentage of Group revenue 11.7% 11.5%
Turnover days 62 days 56 days
Other debtors, deposits and prepayment as of 31 March 2013 were US$34.6 million,
compared to US$33.6 million as of 31 March 2012. The increase was mainly attributable
to the increase in fair value gain on forward foreign exchange contracts in the financial
year 2013.
Trade creditors as of 31 March 2013 were US$176.2 million, as compared to US$173.8
million as of 31 March 2012. Creditor turnover days increased from 82 days to 85 days.
As at 31 March 2013 and 2012
All figures are in US$ million unless stated otherwise 2013 2012
Trade creditors 176.2 173.8
Turnover days 85 days 82 days
Other creditors and accruals as of
31 March 2013 were US$154.4 million,
increased from US$141.1 million as of
31 Mach 2012. The increase was largely
attributable to the increase in accruals
of staff costs, advertising expenses and
other allowances to customers.
Provisions as of 31 March 2013 were
US$28.2 million, as compared to
US$31.5 million as of 31 March 2012.
The decrease was primarily due to the
improvement in defective goods returns
of the Group’s products.
Treasury Policies
The Group’s treasury policies are designed
to mitigate the impact of fluctuations in
foreign currency exchange rates arising
from the Group’s global operations and to
minimise the Group’s financial risks. The
Group principally uses forward foreign
exchange contracts as appropriate for risk
management purposes only, for hedging
foreign exchange transactions and for
managing the Group’s assets and liabilities.
It is the Group’s policy not to enter into
derivative transactions for speculative
purposes.
Capital Expenditure
For the year ended 31 March 2013,
the Group invested US$29.9 million
in the purchase of tangible assets
including plant and machinery,
equipment, computer systems, as well
as the improvement of manufacturing
working environment. All of these
capital expenditures were financed
from internal resources.
Capital Commitments and
Contingencies
In the financial year 2014, the Group
will incur capital expenditure of
US$32.8 million for ongoing business
operations.
All of these capital expenditures will
be financed from internal resources.
As of the financial year end date, the
Group had no material contingencies.
vtech.indb 8 13年5月29日 上午3:17