Vtech 2016 Annual Report Download - page 66

Notes to the Financial Statements
62 VTech Holdings Limited Annual Report 2016
18 Share Capital, Share Options and Share
Purchase Scheme (Continued)
(c) Share Purchase Scheme (Continued)
On 19 May 2015, the Company further amended and extended
the Share Purchase Scheme such that the Company may furnish
the trustee of the Share Purchase Scheme with cash to subscribe
for new shares under the general mandate of the Company (as
approved by the annual general meeting of the Company from
time to time) and hold such new shares in trust for the selected
participants (not being connected persons of the Company) under
the Share Purchase Scheme. During the  nancial year, no new
shares were issued under the general mandate of the Company
pursuant to the Share Purchase Scheme.
During the year ended 31 March 2016, 77,000 shares
(2015: 130,200 shares) were acquired on the Stock Exchange
pursuant to the Share Purchase Scheme. The total amount paid to
acquire the shares during the  nancial year was US$1.0 million
(2015: US$1.7 million).
Details of the Awarded Shares (including those awarded pursuant
to the French Subplan) which have been granted during the years
ended 31 March 2015 and 31 March 2016 are as follows:
2016 2015
Date of award (Note 1) 15 June 2015 12 June 2014
Average purchase cost per Awarded Share HK$101.23 HK$106.53
Number of Awarded Shares granted
(Note 4)
109,000 94,600
Cost of related Awarded Shares US$1.4 million US$1.3 million
Vesting Period 15 June 2015 to
21 June 2015
12 June 2014 to
18 June 2014
Vesting Period for the Awarded Shares
granted under the French Subplan
15 June 2017 to
21 June 2017
12 June 2016 to
18 June 2016
Notes:
(1) The date of award refers to the date on which the Company issued the letter of award
to the eligible participants for the entitlement of the Awarded Shares.
(2) No Awarded Shares were granted to executive Directors or non-executive Directors
during the  nancial year.
(3) No Awarded Shares lapsed or were cancelled during the  nancial year.
(4) These Awarded Shares included 4,300 Awarded Shares (2015: 4,800 Awarded Shares)
granted under the French Subplan during the  nancial year.
As at 31 March 2016, a total of 42,600 shares (2015: 74,600 shares)
were held in trust by the trustee under the Share Purchase Scheme
and 9,100 shares (2015: 17,200 shares) were held in trust by the
trustee under the French Subplan which were granted to the
eligible French employees and remain unvested. The trustee can
exercise the voting rights of the shares held in trust in any general
meetings as shareholder as it sees  t (and the Company has no
power to in uence how the trustee should exercise this discretion).
Dividends derived from the shares held under the trust will be
reinvested to acquire further shares.
During the year ended 31 March 2016, share-based payment
expenses of US$1.4 million (2015: US$1.3 million) in respect of the
Awarded Shares were charged to the consolidated statement of
pro t or loss.
(d) Capital Management
The Group’s primary objectives when managing capital are to
safeguard the Group’s ability to continue as a going concern,
so that it can continue to provide returns for shareholders and
bene ts for other stakeholders, by pricing products and services
commensurately with the level of risk and by securing access to
 nance at a reasonable cost.
The Group actively and regularly reviews and manages its capital
structure to maintain a balance between the higher shareholder
returns that might be possible with higher levels of borrowings
and the advantages and security a orded by a sound capital
position, and makes adjustments to the capital structure in light of
changes in economic conditions.
The Group has no bank borrowings as at 31 March 2016 (2015:
US$Nil). Adjusted capital comprises all components of equity less
unaccrued proposed dividends.
In order to monitor its capital structure, the Group may adjust the
amount of dividends to be paid to shareholders, issue new shares,
return capital to shareholders or raise new debt  nancing.
The adjusted capital at 31 March 2015 and 31 March 2016 is as
follows:
2016
US$ million
2015
US$ million
Total equity 525.0 540.8
Less: Proposed dividends (62.8) (153.2)
462.2 387.6
Neither the Company nor any of its subsidiaries are subject to
externally imposed capital requirements.