Vtech 2016 Annual Report Download - page 63

59VTech Holdings Limited Annual Report 2016
15 Creditors and Accruals
Note
2016
US$ million
2015
US$ million
Trade creditors 15(a) 188.4 186.1
Other creditors and accruals 15(b) 156.3 155.4
Forward foreign exchange
contracts held as cash flow
hedging instruments
20(b)
&(d) 0.6 1.1
345.3 342.6
(a) Ageing Analysis
An ageing analysis of trade creditors by transaction date is
as follows:
2016
US$ million
2015
US$ million
0-30 days 71.8 60.7
31-60 days 36.9 46.5
61-90 days 52.7 56.4
>90 days 27.0 22.5
Total 188.4 186.1
(b) Other creditors and accruals
Other creditors and accruals comprised largely accruals in sta
costs, advertising and promotion expenses, rebates and allowances
to customers, and miscellaneous operating expenses.
Other creditors and accruals are expected to be settled or
recognised as income within one year or are repayable on
demand.
16 Provisions for defective goods returns and
other liabilities
At 31 March 2016, provisions of US$31.5 million (2015: US$27.3
million) include provisions for defective goods returns of US$20.9
million (2015: US$22.0 million) and other liabilities of US$10.6
million (2015: US$5.3 million).
Movement of provision for defective goods returns is as follows:
2016
US$ million
2015
US$ million
At 1 April 22.0 22.7
Effect of changes in exchange rates –(0.4)
Additional provisions charged to
consolidated statement of profit
or loss 21.3 24.0
Utilised during the year (22.4) (24.3)
At 31 March 20.9 22.0
The Group undertakes to repair or replace items that fail to perform
satisfactorily in accordance with the terms of the sales. A provision
is recognised for expected return claims, which included cost of
repairing or replacing defective goods, loss of margin and cost of
materials scrapped, based on past experience of the level of repairs
and returns.
17 Pension Schemes
The Group operates a de ned bene t scheme and de ned
contribution schemes in Hong Kong and overseas. The de ned
contribution scheme operated in Hong Kong complies with
the requirements under the Mandatory Provident Fund
(“MPF”) Ordinance.
(a) De ned contribution schemes
For the de ned contribution schemes operated for overseas
employees and Hong Kong employees under the MPF Ordinance,
the retirement bene t costs expensed in the consolidated statement
of pro t or loss amounted to US$17.5 million (2015: US$15.8 million)
and US$0.8 million (2015: US$0.8 million) respectively.
(b) De ned bene t scheme
For the de ned bene t scheme (the “Scheme”) operated for Hong
Kong employees, contributions made by the Group during the
year were calculated based on advice from Towers Watson Hong
Kong Limited (“Towers Watson”), independent actuaries and
consultants. The Scheme is valued annually. The latest actuarial
valuation was completed by Towers Watson as at 31 March 2016
using the projected unit credit method.
(i) For the de ned bene t scheme, the amounts recognised in
the consolidated statement of  nancial position are as follows:
2016
US$ million
2015
US$ million
Fair value of Scheme assets 28.7 28.8
Present value of funded defined
benefit obligations (33.8) (31.8)
Net obligations on defined
benefit scheme recognised in
the consolidated statement of
financial position (5.1) (3.0)
A portion of the above liability is expected to be settled after more
than one year. However, it is not practicable to segregate this
amount from the amounts payable in the next twelve months, as
future contributions will also relate to future services rendered and
future changes in actuarial assumptions and market conditions.
The Group expects to pay US$1.8 million in contributions
to de ned bene t retirement scheme in the year ending
31 March 2017.