Vtech 2014 Annual Report Download - page 58

56 VTech Holdings Limited Annual Report 2014
Notes to the Financial Statements
10 Stocks (Continued)
(b) The analysis of the amount of inventories recognised as an
expense and included in the consolidated income statement
is as follows:
2014
US$ million
2013
US$ million
Carrying amount of inventories sold 1,258.5 1,255.1
Write-down of inventories 9.1 5.4
Reversal of write-down of inventories (3.0) (0.3)
1,264.6 1,260.2
The reversal of write-down of inventories arose due to an increase
in estimated net realisable value of certain products as a result of
change in consumer preferences.
11 Debtors, Deposits and Prepayments
Note
2014
US$ million
2013
(Restated)
US$ million
Trade debtors (Net of
allowance for doubtful
debts of US$6.4 million
(2013: US$7.2 million)) 11(a)&(b) 208.6 224.9
Other debtors, deposits
and prepayments 27.2 28.9
Forward foreign exchange
contracts
– held as cash flow
hedging instruments 18(b)&(d) –2.5
– held as fair value
through profit or loss 18(d) –0.8
235.8 257.1
All of other debtors, deposits and prepayments apart from
the amounts of US$5.2 million (comprised largely of royalty
prepayments) (2013: US$7.1 million) are expected to be recovered
or recognised as an expense within one year.
(a) Ageing Analysis
An ageing analysis of net trade debtors by transaction date is
as follows:
2014
US$ million
2013
US$ million
0 – 30 days 120.6 114.9
31 – 60 days 67.9 77.3
61 – 90 days 18.4 24.3
>90 days 1.7 8.4
Total 208.6 224.9
The majority of the Group’s sales are on letter of credit and on open
credit with varying terms of 30 to 90 days. Certain open credit sales
are covered by credit insurance or bank guarantees.
(b) Impairment of trade debtors
Impairment losses in respect of trade debtors are recorded using
an allowance account unless the Group is satisfied that recovery of
the amount is remote, in which case the impairment loss is written
off against trade debtors directly.
At 31 March 2014, the Group’s trade debtors of US$6.4 million
(2013: US$7.2 million) were individually determined to be impaired
as management considered that these receivables cannot be
recovered. Consequently, full provisions for these doubtful debts
were recognised.
The movement in the allowance for doubtful debts during the
year, including both specific and collective loss components,
is as follows:
Note
2014
US$ million
2013
US$ million
At 1 April 7.2 6.9
Impairment loss recognised 2 0.6 1.7
Impairment loss written back 2 (0.7) –
Uncollectible amounts
written off (0.8) (1.3)
Effect of changes in
exchange rates 0.1 (0.1)
At 31 March 6.4 7.2
(c) Trade debtors that are not impaired
As at 31 March 2014, 97% (2013: 97%) of the Group’s trade debtors
were not impaired, of which 100% (2013: 100%) was either not past
due or less than two months past due. Based on past experience
of the Group, it is determined that no impairment allowance
is necessary in respect of these balances as these balances are
considered to be fully recoverable. The Group does not hold any
collateral over these balances.
12 Deposits and Cash
The Group The Company
2014
US$ million
2013
US$ million
2014
US$ million
2013
US$ million
Short term bank
deposits 165.0 135.0 ––
Cash at bank and
in hand 157.9 173.6 0.8 0.8
Deposits and cash 322.9 308.6 0.8 0.8
Less: bank deposits
with maturity
greater than
three months (135.0) (135.0) ––
Cash and cash
equivalents in
the consolidated
statement of
cash flows 187.9 173.6 0.8 0.8
Deposits and cash as at 31 March 2014 include US$31.6 million
equivalent (2013: US$28.9 million) placed with banks in the PRC,
the remittance of which is subject to relevant rules and regulations
of foreign exchange control promulgated by the PRC government.
13 Creditors and Accruals
The Group The Company
Note
2014
US$ million
2013
US$ million
2014
US$ million
2013
US$ million
Trade creditors 13(a) 140.8 176.2 ––
Other creditors
and accruals 13(b) 159.3 154.4 0.5 0.4
Forward foreign
exchange
contracts
held as cash
flow hedging
instruments
18(b)
&(d) 4.3 –––
304.4 330.6 0.5 0.4