Vtech 2014 Annual Report Download - page 54

52 VTech Holdings Limited Annual Report 2014
Notes to the Financial Statements
4 Taxation
Note
2014
US$ million
2013
US$ million
Current tax
– Hong Kong 15.3 16.4
– Overseas 7.3 6.3
Over-provision in respect of
prior years
– Hong Kong (0.1) (0.1)
Deferred tax
– Origination and reversal of
temporary differences 9(b) 1.7 1.5
24.2 24.1
(a) Hong Kong Profits Tax has been calculated at the rate of 16.5%
(2013: 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 2014 was 10.6% (2013: 10.7%, as restated). The effective
income tax rate is reconciled to the statutory domestic income tax
rate as follows:
2014
%
2013
(Restated)
%
Statutory domestic income tax rate 16.5 16.5
Difference in overseas income tax rates 1.4 1.2
Tax effect of non-temporary differences (6.8) (6.6)
Others (0.5) (0.4)
Effective income tax rate 10.6 10.7
(d) Included in the consolidated statement of comprehensive
income for the year ended 31 March 2014 was US$1.3 million
(2013: US$1.7 million) related to the deficit on revaluation of
properties which was derived at after the related tax credit of
US$0.4 million (2013: US$0.6 million).
5 Dividends
Note
2014
US$ million
2013
US$ million
Interim dividend of US16.0
cents (2013: US16.0 cents)
per share declared and paid 17 40.1 40.1
Final dividend of US64.0 cents
(2013: US64.0 cents) per
share proposed after the
balance sheet date 17 160.6 160.2
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 15 May 2013, the Directors proposed a final
dividend of US64.0 cents per ordinary share for the year ended
31 March 2013, which was estimated to be US$160.2 million at the
time calculated on the basis of the ordinary shares in issue as at
31 March 2013. The final dividend was approved by shareholders
at the annual general meeting on 12 July 2013. As a result of
shares issuance upon exercise of share options during the period
between 1 April 2013 and 12 July 2013, the final dividend paid in
respect of the year ended 31 March 2013 totaled US$160.5 million.
3 Directors’ Emoluments and Individuals
with Highest Emoluments (Continued)
Directors’ emoluments (Continued)
Notes:
(i) The directors’ fee paid to each executive Director was US$30,000 (2013:
US$30,000) per annum.
(ii) The emoluments paid to each independent non-executive Director was
US$30,000 (2013: US$30,000) per annum, pro-rata to their length of service
during the year.
(iii) The emoluments paid to Dr. Allan WONG Chi Yun included housing benefit
of HK$3,600,000 for the year ended 31 March 2014 (2013: HK$3,600,000),
which was based on the lease agreement entered by the Company with
Aldenham Company Limited (“Aldenham”). Aldenham is an indirect wholly
owned subsidiary of a discretionary trust of which Dr. Allan WONG Chi Yun,
a Director, was the founder.
(iv) Mr. Denis Morgie HO Pak Cho retired as an independent non-executive
Director with effect from the conclusion of the 2013 AGM.
(v) Mr. WONG Kai Man was appointed as an independent non-executive
Director on 19 September 2012.
(vi) Dr. David SUN Tak Kei resigned as an independent non-executive Director
with effect from 30 June 2012.
(vii) Share-based payments represent the fair value of share options granted to
the Directors which were charged to the consolidated income statement in
accordance with the accounting policy set out in Note (S).
Individuals with highest emoluments
Of the five individuals with the highest emoluments, three
(2013: three) are Directors whose emoluments are set out above.
The aggregate of the emoluments in respect of the other two
(2013: two) individuals are as follows:
2014
US$ million
2013
US$ million
Salaries, allowances and benefits in kind 1.0 1.0
Discretionary bonuses 2.2 1.1
Contribution to retirement
benefit schemes ––
Share-based payments ––
3.2 2.1
The emoluments fell within the following bands:
2014
Individuals
2013
Individuals
US$
897,001 – 961,000 –1
961,001 – 1,025,000 1–
1,153,001 – 1,217,000 –1
2,241,001 – 2,305,000 1–
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During the years ended 31 March 2013 and 31 March 2014, there
were no amounts paid to Directors and individuals for compensation
for loss of office and inducement for joining the Group.
Emoluments of senior management
Other than the Directors’ remuneration and emoluments of five
highest individuals disclosed in note 3, the emoluments of the
senior management whose profiles are included in Directors and
Senior Management section of this Annual Report fell within the
following bands:
2014
Individuals
2013
Individuals
US$
257,001 – 321,000 –1
321,001 – 385,000 1–
385,001 – 449,000 11
449,001 – 513,000 12
513,001 – 577,000 2–
577,001 – 641,000 –2
833,001 – 897,000 1–
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