Vtech 2016 Annual Report Download - page 62

Notes to the Financial Statements
58 VTech Holdings Limited Annual Report 2016
12 Stocks
(a) Stocks in the consolidated statement of  nancial position comprise:
2016
US$ million
2015
US$ million
Raw materials 96.4 99.6
Work in progress 28.8 32.6
Finished goods 160.2 158.0
285.4 290.2
Stocks carried at net realisable value at 31 March 2016 amounted
to US$8.0 million (2015: US$11.0 million).
(b) The analysis of the amount of stocks recognised as an expense
and included in the consolidated statement of pro t or loss is
as follows:
2016
US$ million
2015
US$ million
Carrying amount of stocks sold 1,266.1 1,258.7
Write-down of stocks 8.3 10.9
Reversal of write-down of stocks (1.2) (0.3)
1,273.2 1,269.3
The reversal of write-down of stocks arose due to an increase in
estimated net realisable value of certain products as a result of
change in consumer preferences.
13 Debtors, Deposits and Prepayments
Note
2016
US$ million
2015
US$ million
Trade debtors (Net of
allowance for doubtful
debts of US$5.9 million
(2015: US$6.0 million)) 13(a)&(b) 230.3 221.9
Other debtors, deposits
and prepayments 30.4 31.4
Forward foreign exchange
contracts held as
cash flow hedging
instruments 20(b)&(d) 5.5 6.6
266.2 259.9
All of other debtors, deposits and prepayments apart from the
amounts of US$2.9 million (comprised largely of rental deposits)
(2015: US$3.8 million) are expected to be recovered or recognised
as an expense within one year.
(a) Ageing Analysis
At the end of the reporting period, the ageing analysis of trade
debtors, based on the invoice date and net of allowance for
doubtful debts, is as follows:
2016
US$ million
2015
US$ million
0-30 days 130.0 127.9
31-60 days 59.4 71.6
61-90 days 35.2 21.2
>90 days 5.7 1.2
Total 230.3 221.9
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 satis ed that recovery of
the amount is remote, in which case the impairment loss is written
o against trade debtors directly.
At 31 March 2016, the Group’s trade debtors of US$5.9 million
(2015: US$6.0 million) were individually determined to be impaired
as management considered that these receivables cannot be
recovered. Consequently, full provisions for these doubtful debts
were recognised.
The movement in the allowance for doubtful debts during the
year, including both speci c and collective loss components, is
as follows:
Note
2016
US$ million
2015
US$ million
At 1 April 6.0 6.4
Impairment loss recognised 2 0.6 1.4
Impairment loss written back 2 (0.3) (1.1)
Uncollectible amounts
written off (0.5) (0.5)
Effect of changes in
exchange rates 0.1 (0.2)
At 31 March 5.9 6.0
(c) Trade debtors that are not impaired
As at 31 March 2016, 98% (2015: 97%) of the Group’s trade debtors
were not impaired, of which 100% (2015: 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.
14 Deposits and Cash
2016
US$ million
2015
US$ million
Short term bank deposits 5.0 94.4
Cash at bank and in hand 268.0 199.8
Deposits and cash 273.0 294.2
Less: bank deposits with original
maturity greater than three months –(70.0)
Cash and cash equivalents in
the consolidated statement of
cash flows 273.0 224.2
Deposits and cash as at 31 March 2016 include US$22.0 million
(2015: US$35.8 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.