Document_And_Entity_Informatio
Document And Entity Information | 12 Months Ended |
Mar. 31, 2014 | |
Document Information [Line Items] | ' |
Entity Registrant Name | 'HIGHWAY HOLDINGS LTD |
Entity Central Index Key | '0001026785 |
Current Fiscal Year End Date | '--03-31 |
Entity Filer Category | 'Non-accelerated Filer |
Trading Symbol | 'HIHO |
Entity Common Stock, Shares Outstanding | 0 |
Document Type | '20-F |
Amendment Flag | 'false |
Document Period End Date | 31-Mar-14 |
Document Fiscal Period Focus | 'FY |
Document Fiscal Year Focus | '2014 |
Entity Well-known Seasoned Issuer | 'No |
Entity Voluntary Filers | 'No |
Entity Current Reporting Status | 'Yes |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Net sales | $22,936 | $21,933 | $25,370 |
Cost of sales | -17,484 | -17,029 | -20,249 |
Gross profit | 5,452 | 4,904 | 5,121 |
Selling, general and administrative expenses | -4,659 | -4,549 | -4,891 |
Operating income | 793 | 355 | 230 |
Non-operating income (expense): | ' | ' | ' |
Exchange gain (loss), net | -31 | -27 | 126 |
Interest expense | -1 | -9 | -24 |
Interest income | 17 | 14 | 4 |
Other income | 12 | 0 | 11 |
Gain (loss) on disposal of property, plant and equipment | -23 | 78 | 23 |
Total non-operating income (expense) | -26 | 56 | 140 |
Income before income taxes | 767 | 411 | 370 |
Income taxes (note 3) | -172 | 37 | -186 |
Net income | 595 | 448 | 184 |
Less: Net loss attributable to non-controlling interests | -1 | 0 | 0 |
Net income attributable to Highway Holdings | $596 | $448 | $184 |
Net income per share: | ' | ' | ' |
- basic (in dollars per share) | $0.16 | $0.12 | $0.05 |
- diluted (in dollars per share) | $0.16 | $0.12 | $0.05 |
Weighted average number of shares outstanding: | ' | ' | ' |
- basic (in shares) | 3,778,825 | 3,778,825 | 3,777,850 |
- diluted (in shares) | 3,788,604 | 3,781,307 | 3,788,302 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Net income | $595 | $448 | $184 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Change in cumulative foreign currency translation adjustment | -9 | 16 | 0 |
Comprehensive income | 586 | 464 | 184 |
Less: comprehensive loss attributable to non-controlling interest | -1 | 0 | 0 |
Comprehensive income attributable to Highway Holdings Limited's shareholders | $587 | $464 | $184 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $5,416 | $4,634 |
Restricted cash (note 7) | 643 | 643 |
Accounts receivable, net of allowances for doubtful accounts of nil and $6 as of March 31, 2013 and 2014, respectively | 3,157 | 3,958 |
Inventories (note 4) | 3,700 | 2,957 |
Amount due from an equity method investee | 0 | 110 |
Prepaid expenses and other current assets | 1,044 | 1,114 |
Total current assets | 13,960 | 13,416 |
Property, plant and equipment, net (note 5) | 1,213 | 1,769 |
Long-term deposits | 167 | 0 |
Investments in equity method investees (note 6) | 0 | 0 |
Loan receivable (note 8) | 436 | 167 |
TOTAL ASSETS | 15,776 | 15,352 |
Current liabilities: | ' | ' |
Accounts payable | 1,577 | 1,515 |
Long-term loans - current portion (note 9) | 0 | 112 |
Accrued expenses and other liabilities (note 10) | 1,730 | 1,386 |
Income tax payable | 279 | 158 |
Dividend payable | 0 | 114 |
Total current liabilities | 3,586 | 3,285 |
Deferred income taxes (note 3) | 44 | 59 |
Total liabilities | 3,630 | 3,344 |
Commitments and contingencies (note 11) | ' | ' |
Shareholders' equity: | ' | ' |
Common shares, $0.01 par value (Authorized: 20,000,000 shares; 3,783,874 shares issued and outstanding as of March 31, 2013 and 2014) | 38 | 38 |
Additional paid-in capital | 11,340 | 11,340 |
Retained profits | 770 | 628 |
Treasury shares, at cost - 5,049 shares as of March 31, 2013 and 2014 (note 12) | -14 | -14 |
Accumulated other comprehensive income | 7 | 16 |
Total Highway Holdings shareholder's equity | 12,141 | 12,008 |
Non-controlling interest | 5 | 0 |
Total Equity | 12,146 | 12,008 |
TOTAL LIABILITIES AND EQUITY | $15,776 | $15,352 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Allowances for doubtful accounts (in dollars) | $6 | $0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 3,783,874 | 3,783,874 |
Common stock, shares outstanding | 3,783,874 | 3,783,874 |
Treasury shares | 5,049 | 5,049 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Highway Holdings Limited Shareholders Equity [Member] | Noncontrolling Interest [Member] |
In Thousands, except Share data | ||||||||
Balance at Mar. 31, 2011 | $12,565 | $38 | $11,335 | $1,206 | $0 | ($14) | $12,565 | $0 |
Balance (in shares) at Mar. 31, 2011 | ' | 3,781 | ' | ' | ' | ' | ' | ' |
Net income | 184 | 0 | 0 | 184 | 0 | 0 | 184 | 0 |
Exercise of share options | 5 | 0 | 5 | 0 | 0 | 0 | 5 | 0 |
Exercise of share options (in shares) | -3,000 | 3 | ' | ' | ' | ' | ' | ' |
Cash dividends | -756 | 0 | 0 | -756 | 0 | 0 | -756 | 0 |
Contribution from a non-controlling shareholder | 0 | ' | ' | ' | ' | ' | ' | ' |
Translation adjustments | 0 | ' | ' | ' | ' | ' | ' | ' |
Balance at Mar. 31, 2012 | 11,998 | 38 | 11,340 | 634 | 0 | -14 | 11,998 | 0 |
Balance (in shares) at Mar. 31, 2012 | ' | 3,784 | ' | ' | ' | ' | ' | ' |
Net income | 448 | 0 | 0 | 448 | 0 | 0 | 448 | 0 |
Cash dividends | -454 | 0 | 0 | -454 | 0 | 0 | -454 | 0 |
Contribution from a non-controlling shareholder | 0 | ' | ' | ' | ' | ' | ' | ' |
Translation adjustments | 16 | 0 | 0 | 0 | 16 | 0 | 16 | 0 |
Balance at Mar. 31, 2013 | 12,008 | 38 | 11,340 | 628 | 16 | -14 | 12,008 | 0 |
Balance (in shares) at Mar. 31, 2013 | ' | 3,784 | ' | ' | ' | ' | ' | ' |
Net income | 595 | 0 | 0 | 596 | 0 | 0 | 596 | -1 |
Cash dividends | -454 | 0 | 0 | -454 | 0 | 0 | -454 | 0 |
Contribution from a non-controlling shareholder | 6 | 0 | 0 | 0 | 0 | 0 | 0 | 6 |
Translation adjustments | -9 | 0 | 0 | 0 | -9 | 0 | -9 | 0 |
Balance at Mar. 31, 2014 | $12,146 | $38 | $11,340 | $770 | $7 | ($14) | $12,141 | $5 |
Balance (in shares) at Mar. 31, 2014 | ' | 3,784 | ' | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY [Parenthetical] (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Cash dividends, per share (in dollars per share) | $0.12 | $0.12 | $0.20 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $595 | $448 | $184 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation of property, plant and equipment | 557 | 586 | 670 |
Write down of inventories | 125 | 56 | 199 |
(Gain) loss on disposal of property, plant and equipment | 23 | -78 | -23 |
Deferred income taxes | -15 | -121 | 7 |
Share of losses of equity method investees | 0 | 0 | 31 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | 801 | -234 | 1,073 |
Inventories | -868 | 957 | 67 |
Prepaid expenses and other assets | 70 | -584 | -181 |
Accounts payable | 62 | -1,032 | -732 |
Accrued expenses and other liabilities | 344 | 62 | -733 |
Income tax payable | 121 | 5 | 82 |
Long-term deposits | -167 | 0 | 0 |
Net cash provided by operating activities | 1,648 | 65 | 644 |
Investing activities: | ' | ' | ' |
Purchase of property, plant and equipment | -73 | -319 | -355 |
Proceeds from disposal of property, plant and equipment | 41 | 79 | 50 |
Reduction in amount due from an equity method investee | 110 | 0 | 0 |
Increase in long-term loan receivable | -269 | -167 | 0 |
Contribution from a non-controlling shareholder | 6 | 0 | 0 |
Net cash used in investing activities | -185 | -407 | -305 |
Financing activities: | ' | ' | ' |
Proceed from exercise of employee share options | 0 | 0 | 5 |
Cash dividends paid | -568 | -340 | -1,058 |
Repayment of obligations under capital leases | 0 | -3 | -41 |
Repayment of bank loans | -112 | -262 | -534 |
Net cash used in financing activities | -680 | -605 | -1,628 |
Net (decrease) increase in cash and cash equivalents | 783 | -947 | -1,289 |
Cash and cash equivalents at the beginning of year | 4,634 | 5,575 | 6,864 |
Effect of exchange rate changes on cash | -1 | 6 | 0 |
Cash and cash equivalents at the end of year | 5,416 | 4,634 | 5,575 |
Supplemental cash flow information: | ' | ' | ' |
Interest | 1 | 9 | 24 |
Income taxes | $66 | $77 | $97 |
ORGANIZATION_AND_BASIS_OF_FINA
ORGANIZATION AND BASIS OF FINANCIAL STATEMENTS | 12 Months Ended | ||
Mar. 31, 2014 | |||
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | ' | ||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' | ||
1 | ORGANIZATION AND BASIS OF FINANCIAL STATEMENTS | ||
Highway Holdings Limited (the "Company") was incorporated in the British Virgin Islands on July 20, 1990. It operates through its subsidiaries operating in the Hong Kong Special Administrative Region ("Hong Kong") and Shenzhen (comprising Long Hua) of the People's Republic of China ("China"). | |||
The Company and its subsidiaries (collectively referred as the "Group") are engaged in manufacturing and sale of metal, plastic and electronic parts and components. The Group's manufacturing activities are principally conducted in Shenzhen of China and its selling activities are principally conducted in Hong Kong. | |||
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||
Mar. 31, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Significant Accounting Policies [Text Block] | ' | ||
2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
(a) Principles of consolidation - The consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated on consolidation. The results of subsidiaries acquired have been consolidated from the date of acquisition. | |||
(b) Investments under equity method - The investments for which the Group has the ability to exercise significant influence are accounted for under the equity method. Under the equity method, original investments are recorded at cost and adjusted by the Group's share of undistributed earnings or losses of these entities, the amortization of intangible assets recognized upon purchase price allocation and dividend distributions or subsequent investments. All unrecognized inter-company profits and losses have been eliminated under the equity method. | |||
When the estimated amount to be realized from the investments falls below its carrying value, an impairment charge is recognized in the consolidated statements of operations when the decline in value is considered other than temporary. | |||
(c) Cash and cash equivalents - Cash and cash equivalents consist of cash on hand, demand deposits, highly liquid investments which are unrestricted as to withdrawal and use, and which have maturities of three months or less when purchased, and are readily convertible to known amount of cash. | |||
(d) Restricted cash - Restricted cash represents the amount of cash pledged as securities for the credit facilities provided by a financial institution. | |||
(e) Accounts receivable - Accounts receivable primarily represent amounts due from customers, that are typically non-interest bearing and are initially recorded at invoiced amount. The Group reviews its accounts receivable on a periodic basis and records allowances when there is a doubt as to the collectability of the balance. In evaluating the collectability of the accounts receivable balances, the Group considers various factors, including the age of the balance, customer specific facts and economic conditions. Accounts receivable balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group does not have any off-balance-sheet credit exposure related to its customers. | |||
(f) Inventories - Inventories are stated at the lower of cost determined by the first in first out method, or market value. Work-in-progress and finished goods consist of raw materials, direct labour and overheads associated with the manufacturing process. Write down of potential obsolete or slow moving inventories is recorded based on management's assumptions about future demands and market conditions. | |||
(g) Property, plant and equipment - Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed on a straight line basis over the estimated useful lives of 10 years for machinery and equipment and 2 to 5 years for other property, plant and equipment. Assets held under capital leases are depreciated over the shorter of their lease period or estimated useful lives on the same basis as owned assets unless the ownership of these assets transfers to the Group by the end of the lease term over the estimated useful lives. | |||
(h) Impairment or disposal of long-lives assets - The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow were to be less than the carrying amount of the assets, the Group would recognize an impairment loss based on the fair value of the assets. | |||
No impairment expenses are recognized for long-lived assets during the years ended March 31, 2012, 2013 and 2014. | |||
(i) Concentration of credit risk - Financial instruments that potentially expose the Group to concentration of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable and loan receivable. The Group places its cash and cash equivalents and restricted cash with financial institutions with high credit ratings and quality. | |||
The risks with respect to accounts receivables and loan receivable are mitigated by credit evaluations performed on the customers or debtors and ongoing monitoring of outstanding balances. The Group establishes an allowance for doubtful accounts based upon estimates, factors surrounding the credit risk of specific customers and other information. Accounts receivable and loan receivable are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The accounts receivable from customers with individual balances over 10% of the accounts receivable represent 81%, 62% and 54% of the balances of accounts receivable as of March 31, 2012, 2013 and 2014, respectively. The loan receivable from a supplier represents 100% of the balance of loan receivable as of March 31, 2013 and 2014. | |||
(j) Revenue recognition - The Group recognizes revenue from the sale of products, when all of the following conditions are met: | |||
· | Persuasive evidence of an arrangement exists; | ||
· | Delivery has occurred; | ||
· | Price to the customer is fixed or determinable; and | ||
· | Collectability is reasonably assured. | ||
Revenue from sales of products is recognized when the title is passed to customers upon shipment and when collectability is reasonably assured. The Group does not provide its customers with the right of return (except for quality) or price protection. There are no customer acceptance provisions associated with the Group's products. All sales are based on firm customer orders with fixed terms and conditions, which generally cannot be modified. | |||
(k) Staff retirement plan costs - The Group's costs related to the staff retirement plans (see note 15) are charged to the consolidated statement of operations as incurred. | |||
(l) Foreign currency translations and transactions - The functional and reporting currency of the Company is the United States Dollars ("U.S. dollars"). All transactions in currencies other than functional currencies of the Company during the year are remeasured at the exchange rates prevailing on the respective transaction dates. Monetary assets and liabilities existing at the balance sheet date denominated in currencies other than functional currencies are remeasured at the exchange rates on that date. Exchange differences are recorded in the consolidated statements of operations. | |||
The books and records of the Company's major subsidiaries are maintained in their respective local currencies, the Hong Kong dollars or Renminbi, which are also their respective functional currencies. All assets and liabilities are translated at the rates of exchange prevailing at the balance sheet date and all income and expense items are translated at the average rates of exchange over the year. All exchange differences arising from the translation of subsidiaries' financial statements are recorded as a component of comprehensive income (loss). | |||
(m) Income taxes - Deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities, and operating loss and tax credit carryforwards using enacted tax rates that will be in effect for the period in which the differences are expected to reverse. The Group records a valuation allowance against the amount of deferred tax assets that it determines is not more likely than not of being realized. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. | |||
The Group recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group records interest related to unrecognized tax benefits and penalties, if any, within income tax benefits (expenses). | |||
(n) Use of estimates - The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses for the periods presented. Actual results could differ from those estimates. The significant accounting estimate, which has had an impact on the consolidated financial statements, includes allowances for doubtful receivables. | |||
(o) Stock-based compensation - The Group has a stock-based employee compensation plan, as be more fully described in note 16. The Group measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized over the period during which an employee is required to provide service, the requisite service period (usually the vesting period), in exchange for the award. The grant-date fair value of employee stock options and similar instruments are estimated using Black-Scholes option-pricing model. | |||
Shares issued to consultants in exchange for consulting services are measured at the fair values of the services received, which are measured by reference to the fair value of the shares granted because fair value of consulting service received cannot be reliably measured. The fair values of the services received are recognized as expenses, with a corresponding increase in equity (additional paid-in capital), when the counterparties render services, unless the services qualify for recognition as assets. | |||
(p) Operating leases - Leases in which substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statement of operations on a straight-line basis over the lease periods. | |||
(q) Net income per share - Basic net income per share is computed by dividing net income attributable to the Company by the weighted average number of common shares outstanding during the year. Diluted net income attributable to the Company per share give effect to all dilutive potential common shares outstanding during the year. The weighted average number of common shares outstanding is adjusted to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. | |||
(r) Comprehensive income (loss) - Comprehensive income (loss) includes net income and foreign currency translation adjustments and is presented net of tax, the amounts of nil, $16 and $(9) for the years ended March 31, 2012, 2013 and 2014, respectively. | |||
The Group presents the components of net income, the components of other comprehensive income and total comprehensive income in two separate but consecutive statements. | |||
(s) Fair value measurement and financial instruments - The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Under this hierarchy, there are three levels of inputs that may be used to measure fair value: | |||
· | Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | ||
· | Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | ||
· | Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | ||
Determining which category an asset or liability falls within the hierarchy requires significant judgment. | |||
The Group did not have any financial instruments that were required to be measured at fair value on a recurring basis as of March 31, 2013 and 2014. As of March 31, 2013 and 2014, the Group did not have any nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements, at least annually, on a recurring basis, nor did the Group have any assets or liabilities measured at fair value on a non-recurring basis. | |||
The carrying amounts of financial instruments, which consist of cash and cash equivalents, restricted cash, accounts receivable, amount due from an equity method investee, loan receivable, accounts payable and other liabilities approximate their fair values due to the short term nature of these instruments. | |||
(t) Non-controlling interest - Non-controlling interest have been reported as a component of equity in the consolidated balance sheets and consolidated statements of changes of equity and comprehensive income (loss) for all periods presented. | |||
(u) Recent issued accounting standards adopted - In December 2011, the Financial Accounting Standards Board ("FASB") has issued an authoritative pronouncement related to Disclosures about Offsetting Assets and Liabilities. The guidance requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. In January 2013, the FASB further clarifies that ordinary trade receivables and receivables are not in the scope of the authoritative pronouncement and the pronouncement applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in the FASB Accounting Standards Codification™ (Codification) or subject to a master netting arrangement or similar agreement. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. The Group adopted this pronouncement effective from April 1, 2013, which did not have a significant effect on the Group's consolidated financial statements. | |||
In February 2013, the FASB issued an authoritative pronouncement related to reporting of amounts reclassified out of accumulated other comprehensive income, to improve the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. | |||
The guidance expands the exiting disclosure requirement for reporting net income or other comprehensive income in financial statements, including: | |||
· | Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. | ||
· | Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense. | ||
The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). The amendments are effective for reporting periods beginning after December 15, 2012, for public companies. Early adoption is permitted. The adoption of this pronouncement did not have a significant impact on its financial condition or results of operations. | |||
In March 2013, the FASB has issued an authoritative pronouncement related to parent's accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. When a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a non-profit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity, the parent is required to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The Group does not expect the adoption of this pronouncement will have a significant impact on its financial condition or results of operations. | |||
The amendments in this pronouncement are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The amendments should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. Early adoption is permitted. If an entity elects to early adopt the amendments, it should apply them as of the beginning of the entity's fiscal year of adoption. The adoption of this pronouncement did not have a significant impact on its financial condition or results of operations. | |||
(v) Recent issued accounting standards not yet adopted - In April 2014, the FASB issued a new pronouncement which amends to change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization's operations and financial results. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. This disclosure will provide users with information about the ongoing trends in a reporting organization's results from continuing operations. The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. Early adoption is permitted. The Group does not expect the adoption of this guidance will have a significant effect on its consolidated financial statements. | |||
In July 2013, ASU 2013-11 was issued because GAAP does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carry forward, a similar tax loss, or a tax credit carryforward exists. The amendment provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. We anticipate there will be no effect on our financial position or results of operations when adopted. | |||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||||
3 | INCOME TAXES | ||||||||||
Income is subject to tax in the various countries in which the Group operates. | |||||||||||
No income tax arose in the United States of America in any of the periods presented. | |||||||||||
The Company is not taxed in the British Virgin Islands. | |||||||||||
The Group's operating subsidiaries, other than Nissin Metal and Plastic (Shenzhen) Company Limited ("Nissin Shenzhen"), are all incorporated in Hong Kong and are subject to Hong Kong taxation on income derived from their activities conducted in Hong Kong. Hong Kong Profits Tax has been calculated at 16.5% of the estimated assessable profit for the years ended March 31, 2012, 2013 and 2014. | |||||||||||
Nissin Shenzhen, which is established and operated in China, are subject to the uniform income tax rate of 25% in China. | |||||||||||
The Group's manufacturing operations are conducted mainly in Long Hua, Shenzhen during the years ended March 31, 2012, 2013 and 2014. | |||||||||||
The manufacturing operations of Nissin Precision Metal Manufacturing Limited ("Nissin HK") and Hi-Lite Camera Company Limited ("Hi-lite") in Long Hua, Shenzhen are conducted pursuant to agreements entered into between certain China companies set up by the local government and the Shenzhen City Baoan District Foreign Economic Development Head Group and its designees (collectively, the "BFDC") (the agreements, collectively the "BFDC Agreements"). | |||||||||||
Under the BFDC Agreements, the Group (excluding Nissin Shenzhen) is not considered by local tax authorities to be doing business in China; accordingly, the activities of the Group (excluding Nissin Shenzhen) in China have not been subject to local taxes. The BFDC are responsible for paying taxes they incur as a result of their operations under the BFDC Agreements. | |||||||||||
As part of the manufacturing operations of the Group (excluding Nissin Shenzhen) are carried out in China under the BFDC Agreements, in accordance with the Hong Kong Inland Revenue Departmental Interpretation and Practice Note No. 21, 50% of the related income for the year arising in Hong Kong is not subject to Hong Kong profits tax. The calculation of Hong Kong Profits Tax has been determined based on such tax relief. | |||||||||||
The components of income (loss) before income taxes are as follows: | |||||||||||
Year ended March 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
$ | $ | $ | |||||||||
Hong Kong | 779 | 366 | 649 | ||||||||
China | -409 | 45 | 118 | ||||||||
370 | 411 | 767 | |||||||||
The provision for income taxes consists of the following: | |||||||||||
Year ended March 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
$ | $ | $ | |||||||||
Hong Kong | |||||||||||
Current tax | 179 | 68 | 155 | ||||||||
Deferred tax | 7 | -121 | -15 | ||||||||
186 | -53 | 140 | |||||||||
China | |||||||||||
Current tax | - | 16 | 32 | ||||||||
A reconciliation between the provision for income taxes computed by applying the Hong Kong profits tax rate to profit before income taxes, the actual provision for income taxes is as follows: | |||||||||||
Year ended March 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
% | % | % | |||||||||
Profits tax rate in Hong Kong | 16.5 | 16.5 | 16.5 | ||||||||
Non-deductible items/non-taxable income | 68.3 | 5.9 | 10.3 | ||||||||
Changes in valuation allowances | 0.3 | -31.6 | -4.4 | ||||||||
Under(over)provision of profits tax in prior year | 1.4 | -0.5 | -2 | ||||||||
Effect of different tax rate of subsidiaries operating in other jurisdictions | -36.3 | -3.9 | -2.7 | ||||||||
Other | 0.1 | 4.6 | 4.6 | ||||||||
Effective tax rate | 50.3 | -9 | 22.3 | ||||||||
Deferred income tax (assets) liabilities are as follows: | |||||||||||
As of March 31, | |||||||||||
2013 | 2014 | ||||||||||
$ | $ | ||||||||||
Deferred tax liability: | |||||||||||
Property, plant and equipment | 72 | 48 | |||||||||
Deferred tax asset: | |||||||||||
Tax loss carryforwards | -818 | -807 | |||||||||
Valuation allowance | 805 | 803 | |||||||||
Total net deferred tax asset | -13 | -4 | |||||||||
Net deferred tax liability | 59 | 44 | |||||||||
Movement of valuation allowances are as follows: | |||||||||||
Year ended March 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
$ | $ | $ | |||||||||
At the beginning of the year | 766 | 767 | 805 | ||||||||
Changes in prior year tax losses carry forward | - | 168 | 32 | ||||||||
Current year addition (reduction) | 1 | -130 | -34 | ||||||||
At the end of the year | 767 | 805 | 803 | ||||||||
A valuation allowance has been provided on the deferred tax asset because the Group believes that it is not more likely than not that the asset will be realized. As of March 31, 2013 and 2014, a valuation allowance was provided for the deferred tax asset relating to the future benefit of net operating loss carryforward as the management determined that the utilization of those net operating loss carryforward is not more likely than not. If events occur in the future that allow the Group to realize more of its deferred tax assets than the presently recorded amount, an adjustment to the valuation allowance will be made when those events occur. | |||||||||||
As of March 31, 2013 and 2014, tax losses amounting to approximately $4,959 and $4,893, respectively may be carried forward indefinitely. | |||||||||||
As of March 31, 2013 and 2014, the Group's China subsidiary had no tax loss that would expire five years from respective financial years incurring the losses. | |||||||||||
Uncertainties exist with respect to how China's current income tax law applies to the Group's overall operations, and more specifically, with regard to tax residency status. China's Enterprise Income Tax ("EIT") Law includes a provision specifying that legal entities organized outside of the China will be considered residents for China income tax purposes if their place of effective management or control is within China. The Implementation Rules to the EIT Law provides that non-resident legal entities will be considered China residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting, properties, etc. occurs within China. The Company does not believe that its legal entities organized outside of China should be treated as residents for the EIT Law's purposes. Because substantially all of the Company's revenues on a consolidated basis are generated in China, and the Company's legal entities organized outside of China does not generate any taxable income on a standalone basis, even if one or more of the Company's legal entities organized outside of China were characterized as China tax residents, the Company does not expect any significant adverse impact on the Company's consolidated results of operations. | |||||||||||
The Group has made its assessment of the level of tax authority for each tax position (including the potential application of interest and penalties) based on the technical merits, and has measured the unrecognized tax benefits associated with the tax positions. Based on the evaluation by the Group, it was concluded that there are no significant uncertain tax positions requiring recognition in the consolidated financial statements. | |||||||||||
The Group classifies interest and/or penalties related to unrecognized tax benefits as a component of income tax provisions; however, as of March 31, 2013 and 2014, there is no interest and penalties related to uncertain tax positions, and the Group has no material unrecognized tax benefit which would favorably affect the effective income tax rate in future periods. The Group does not anticipate any significant increases or decreases to its liability for unrecognized tax benefit within the next twelve months. The fiscal years 2007 to 2014 remain subject to examination by the Hong Kong tax authority. | |||||||||||
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory Disclosure [Text Block] | ' | |||||||
4 | INVENTORIES | |||||||
Inventories consisted of the following: | ||||||||
As of March 31, | ||||||||
2013 | 2014 | |||||||
$ | $ | |||||||
Raw materials | 1,770 | 2,013 | ||||||
Work in progress | 287 | 192 | ||||||
Finished goods | 900 | 1,495 | ||||||
2,957 | 3,700 | |||||||
Slow moving inventories amounting to $199, $56 and $125 were written off during the years ended March 31, 2012, 2013 and 2014, respectively. | ||||||||
PROPERTY_PLANT_AND_EQUIPMENT_N
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | |||||||
5 | PROPERTY, PLANT AND EQUIPMENT, NET | |||||||
Property, plant and equipment, net consist of the following: | ||||||||
As of March 31, | ||||||||
2013 | 2014 | |||||||
$ | $ | |||||||
At cost: | ||||||||
Machinery and equipment | 12,124 | 11,933 | ||||||
Furniture and fixtures | 444 | 437 | ||||||
Leasehold improvements | 483 | 483 | ||||||
Motor vehicles | 87 | 87 | ||||||
Total | 13,138 | 12,940 | ||||||
Less: Accumulated depreciation and impairment | -11,369 | -11,727 | ||||||
Property, plant and equipment, net | 1,769 | 1,213 | ||||||
Depreciation expense incurred for the years ended March 31, 2012, 2013 and 2014 were $670, $586 and $557, respectively. | ||||||||
INVESTMENTS_IN_EQUITY_METHOD_I
INVESTMENTS IN EQUITY METHOD INVESTEES | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||
Equity Method Investments Disclosure [Text Block] | ' | |||||||
6 | INVESTMENTS IN EQUITY METHOD INVESTEES | |||||||
The following table provides a reconciliation of the investments in equity method investees in the Group's consolidated balance sheet as of March 31, 2013 and 2014 and the amount of underlying equity in net assets of the equity investees: | ||||||||
As of March 31, | ||||||||
2013 | 2014 | |||||||
$ | $ | |||||||
The Group's proportionate share of equity in the net assets of equity investees | 8 | 5 | ||||||
Less: Accumulated impairment losses recognized | -8 | -5 | ||||||
Investments in equity investees reported in the consolidated balance sheet | - | - | ||||||
On August 5, 2003, the Group acquired a 50% equity interest in Kayser Technik (Overseas) Inc. (K.T.I.) ("Kayser Technik (Overseas)") (formerly known as Kayser Photo (Overseas) Corp. (K.P.C.)), a company incorporated in the Republic of Panama, for cash consideration of $5. Kayser Technik (Overseas) was engaged in the trading of camera batteries, films and disposable cameras and became inactive. Such investment was fully impaired as of March 31, 2013 and 2014. | ||||||||
On April 30, 2009, the Group made cash investment of $3 in its 50% equity interest in Xenon Automation Asia Limited ("Xenon Automation"), a company incorporated in Hong Kong. Xenon Automation was formed to design, manufacture and provide maintenance services for German-designed automation equipment to be used in the manufacturing process of industrial companies in Asia. The Group has disposed its interest in Xenon Automation at nil consideration to other shareholders of Xenon Automation in May 2013, no gain or loss has been resulted on this disposal. The amount due from Xenon Automation of $110 as of March 31, 2013 was fully settled in May 2013. | ||||||||
RESTRICTED_CASH
RESTRICTED CASH | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Restricted Cash and Investments [Abstract] | ' | |||||||
Restricted Cash [Text Block] | ' | |||||||
7 | RESTRICTED CASH | |||||||
Restricted cash represents certain bank deposits of a subsidiary pledged for banking facilities of a subsidiary. The banking facilities are secured by guarantees given by the Company. As of March 31, 2013 and 2014, the Group pledged bank deposits of $643 to banks to secure short term banking facilities granted. There are no restrictive financial covenants associated with these bank facilities. The credit facilities are subject to annual review by the banks. | ||||||||
As of March 31, | ||||||||
2013 | 2014 | |||||||
$ | $ | |||||||
Maximum credit facilities available to the Group | 2,570 | 2,570 | ||||||
Amount utilized | - | 805 | ||||||
LOAN_RECEIVABLE
LOAN RECEIVABLE | 12 Months Ended | |
Mar. 31, 2014 | ||
Notes, Loans and Financing Receivable, Net, Current [Abstract] | ' | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | |
8 | LOAN RECEIVABLE | |
The balance represents the loan receivable to a supplier which is interest free and repayable by March 20, 2016. | ||
LONGTERM_LOANS
LONG-TERM LOANS | 12 Months Ended | ||||
Mar. 31, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Long-term Debt [Text Block] | ' | ||||
9 | LONG-TERM LOANS | ||||
Long-term loans consist of the followings: | |||||
As of March 31, | |||||
2013 | 2014 | ||||
$ | $ | ||||
Unsecured bank loans repayable monthly with | |||||
maturity date of August 20, 2013, interest at | |||||
1.75% p.a. below the Bank's Prime Rate in | |||||
Hong Kong | 56 | - | |||
Unsecured bank loans repayable monthly with | |||||
maturity date of August 26, 2013, interest at | |||||
1.75% p.a. below the Bank's Prime Rate in | |||||
Hong Kong | 56 | - | |||
Total long-term loans | 112 | - | |||
Current portion of long-term loans | -112 | - | |||
Non-current portion of long-term loans | - | - | |||
The loans were fully settled during the year ended March 31, 2014. | |||||
ACCRUED_EXPENSES_AND_OTHER_CUR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended | |||||
Mar. 31, 2014 | ||||||
Accrued Liabilities Current and Other Liabilities Current [Abstract] | ' | |||||
Accrued Liabilities And Other Liabilities Current [Text Block] | ' | |||||
10 | Accrued expenses and other current liabilities | |||||
Accrued expenses and other current liabilities consisted of the following: | ||||||
As of March 31, | ||||||
2013 | 2014 | |||||
$ | $ | |||||
Accrued payroll and employee benefits | 885 | 1,191 | ||||
Deposits received from customers | 16 | 50 | ||||
Accrued audit fee | 252 | 260 | ||||
Others | 233 | 229 | ||||
1,386 | 1,730 | |||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Mar. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||
11 | COMMITMENTS AND CONTINGENCIES | ||||
(a) | The Group leases premises under various operating leases which do not contain any renewal or escalation clauses. Rental expense under operating leases was $1,301, $1,258 and $1,185 for the years ended March 31, 2012, 2013 and 2014, respectively. | ||||
As of March 31, 2014, the Group is committed under operating leases requiring minimum lease payments as follows: | |||||
$ | |||||
Year ending March 31, | |||||
2015 | 886 | ||||
2016 | 798 | ||||
2017 | 707 | ||||
2,391 | |||||
(b) | The Group had a total commitment of $48 and $5 for receiving consulting services as of March 31, 2013 and 2014. The commitment as of March 31, 2014 is expected to be disbursed during the year ending March 31, 2015. | ||||
(c) | The BFDC Agreements in Long Hua were extended to March 31, 2016 in fiscal year 2008. Pursuant to the BFDC Agreements, the Group is not subject to certain rules and regulations that would be imposed on entities which are considered under China law to be doing business in China by utilizing other business structures such as joint ventures or wholly owned subsidiaries organized in China. Should there be any adverse change in the Group's dealings with the BFDC or should the local or federal government change the rules under which the Group currently operates, all of the Group's operations and assets could be jeopardized. | ||||
There can be no assurance that the BFDC will not insist upon a change in the current practices so as to require adherence to the terms of the BFDC Agreements, which the Group considers less favorable to it than the practices currently in effect, or that the Group or BFDC may not be required to do so by the Ministry of Foreign Trade and Economic Co-operation of China and other relevant authorities. There can also be no assurances that the Group will be able to negotiate extensions and further supplements to any of the BFDC Agreements or that the Group will be able to continue its operations in China. If the Group were required to adhere to the terms of the BFDC Agreements, the Group's business and results of operations could be materially and adversely affected. | |||||
However, as part of the reorganization that took place in April 2012, the Group had transformed and transferred the manufacturing operations of Nissin HK to a subsidiary in China in November 2012 and it is currently terminating the principal BFDC Agreement of Nissin HK, even though that Agreement was scheduled to expire in 2016. Hi-lite will continue to operate in accordance with its BFDC Agreement until its BFDC Agreement is terminated by the local government authorities. | |||||
TREASURY_STOCK
TREASURY STOCK | 12 Months Ended | |
Mar. 31, 2014 | ||
Equity [Abstract] | ' | |
Treasury Stock [Text Block] | ' | |
12 | TREASURY STOCK | |
In February 2010, the Board of Directors authorized the Company to repurchase shares up to the value of $1,000. During the year ended March 31, 2011, the Company repurchased 6,049 shares at consideration of $15 of which 1,000 shares were subsequently transferred to an employee upon the exercises of his employee stock options in February 2011. The remaining 5,049 shares were held in treasury as of March 31, 2013 and 2014 and are not eligible to vote. | ||
CONCENTRATIONS_OF_CREDIT_RISK_
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Concentration Of Credit Risk and Major Customers [Abstract] | ' | |||||||
Concentrations Of Credit Risk and Major Customers [Text Block] | ' | |||||||
13 | CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS | |||||||
The Group's financial instruments that are exposed to concentrations of credit risk consist primarily of its cash and cash equivalents, restricted cash, trade receivables and loan receivable. | ||||||||
The Group's cash and cash equivalents are high-quality deposits placed with banking institutions with high credit ratings. This investment policy limits the Group's exposure to concentrations of credit risk. | ||||||||
The trade receivable balances largely represent amounts due from the Group's principal customers who are generally international organizations with high credit ratings. Letters of credit are the principal security obtained to support lines of credit or negotiated contracts from a customer. As a consequence, related credit risk are limited. | ||||||||
Accounts receivable from the three customers with the largest receivable balances as of March 31, 2013 and 2014 are as follows: | ||||||||
Percentage of | ||||||||
accounts receivable | ||||||||
2013 | 2014 | |||||||
% | % | |||||||
Customer A | 36.6 | 31.8 | ||||||
Customer B | 12.4 | 11.6 | ||||||
Customer C | 13.2 | N/A | ||||||
Customer D | N/A | 10.7 | ||||||
Three largest receivable balances | 62.2 | 54.1 | ||||||
Details of the movements of the allowances for doubtful account are as follows: | ||||||||
Year ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
$ | $ | $ | ||||||
At beginning of year | - | - | 6 | |||||
Allowance for the year | - | 6 | - | |||||
At end of year | - | 6 | 6 | |||||
A substantial percentage of the Group's sales are made to three customers and are typically on an open account basis. Customers accounting for 10% or more of total net sales in any of the years ended March 31, 2012, 2013 and 2014 are as follows: | ||||||||
Year ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
% | % | % | ||||||
Customer A (note a) | 25.1 | 33 | 36.9 | |||||
Customer B (note a) | N/A | 12 | N/A | |||||
Customer C (note b) | 16.4 | N/A | N/A | |||||
Customer D (note c) | N/A | 11.7 | N/A | |||||
Customer E (note b) | 11.3 | N/A | N/A | |||||
Notes: | ||||||||
(a) | Sales to this customer were reported in both of the Metal Stamping and Mechanical OEM and Electric OEM operating segments. | |||||||
(b) | Sales to this customer were reported in the Electric OEM operating segment. | |||||||
(c) | Sales to this customer were reported in the Metal Stamping and Mechanical OEM operating segment. | |||||||
NET_INCOME_PER_SHARE
NET INCOME PER SHARE | 12 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||
14 | NET INCOME PER SHARE | ||||||||||
The following table sets forth the computation of basic and diluted net income per share for years indicated: | |||||||||||
Year ended March 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
$ | $ | $ | |||||||||
Net income attributable to Highway Holdings | |||||||||||
Limited's shareholders, basic and diluted | 184 | 448 | 596 | ||||||||
Shares: | |||||||||||
Weighted average common shares used in | |||||||||||
computing basic net income per share | 3,777,850 | 3,778,825 | 3,778,825 | ||||||||
Effect of dilutive securities: | |||||||||||
Weighted average shares from assumed exercise | |||||||||||
of stock options and issuance of common shares | 10,452 | 2,482 | 9,779 | ||||||||
Weighted average common shares used in | |||||||||||
computing diluted net income per share | 3,788,302 | 3,781,307 | 3,788,604 | ||||||||
Net income per share, basic | 0.05 | 0.12 | 0.16 | ||||||||
Net income per share, diluted | 0.05 | 0.12 | 0.16 | ||||||||
55,000, nil and nil options to purchase common shares were excluded in the computation of 2012, 2013 and 2014 diluted net income per share respectively as their effects were anti-dilutive. | |||||||||||
STAFF_RETIREMENT_PLANS
STAFF RETIREMENT PLANS | 12 Months Ended | ||
Mar. 31, 2014 | |||
Compensation and Retirement Disclosure [Abstract] | ' | ||
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' | ||
15 | Staff Retirement Plans | ||
The Group operates a Mandatory Provident Fund ("MPF") scheme for all qualifying employees in Hong Kong. The MPF is defined contribution scheme and the assets of the scheme is managed by a trustee independent to the Group. | |||
The MPF are available to all employees aged 18 to 64 with at least 60 days of service under the employment of the Group in Hong Kong. Contributions are made by the Group at 5% based on the staff's relevant income. | |||
The Group's full time employees in China participate in a government-mandated multiemployer defined contribution plan pursuant to which certain medical care unemployment insurance, employee housing fund and other welfare benefits are provided to employees. The China labor regulations require the Group to accrue for these benefits based on certain percentages of the employees' salaries. No forfeited contributions may be used by the employer to reduce the existing level of contributions. | |||
The cost of the Group's contribution to the staff retirement plans in Hong Kong and China amounted to $150, $186 and $215 for the years ended March 31, 2012, 2013 and 2014, respectively. | |||
STOCK_OPTIONS
STOCK OPTIONS | 12 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Stock Option [Abstract] | ' | |||||||||||||
Stock Options [Text Block] | ' | |||||||||||||
16 | STOCK OPTIONS | |||||||||||||
The Group has adopted the 1996 Stock Option Plan (the "Option Plan"). The Option Plan provides for the grant of options to purchase common shares to employees, officers, directors and consultants of the Group. The Option Plan is administered by the Compensation Committee appointed by the Board of Directors, which determines the terms of the options granted, including the exercise price (provided, however, that the option price shall not be less than fair market value or less than the par value per share on the date the options granted), the number of common shares subject to the option and the option's exercisability. The maximum exercisable period of options granted under the Option Plan is five years. | ||||||||||||||
Since the Company had granted options for the purchase of all authorized shares under the 1996 Option Plan, on June 26, 2010, the Company adopted the "2010 Stock Option And Restricted Stock Plan" (the "2010 Option Plan"). The 2010 Option Plan replaced the 1996 Option Plan. Under the new option plan, the Company is authorized to grant options, and to issue restricted shares, for a total of 600,000 shares. The options vest in accordance with the terms of the agreements entered into by the Group and the grantee of the options. To date, no options and restricted shares have been granted under the 2010 Option Plan. | ||||||||||||||
No options were granted by the Company for the years ended March 31, 2012, 2013 and 2014. | ||||||||||||||
As of March 31, 2013 and 2014, there were no unrecognized compensation cost related to non-vested stock options granted under the Option Plan, nor any non-vested stock options. | ||||||||||||||
A summary of stock option activity during the years ended March 31, 2012, 2013 and 2014 is as follows: | ||||||||||||||
Weighted | Weighted | |||||||||||||
Weighted | average | average | ||||||||||||
Number of | average | fair value | remaining | |||||||||||
stock | exercise | per stock | contractual | |||||||||||
options | price | option | life (years) | |||||||||||
$ | $ | |||||||||||||
Outstanding as of April 1, 2011 | 123,000 | 3.29 | 1.04 | 1.44 | ||||||||||
Exercised | -3,000 | 1.65 | 0.95 | |||||||||||
Lapsed/cancelled | -40,000 | 3.42 | 1 | |||||||||||
Outstanding as of March 31, 2012 | 80,000 | 3.29 | 1.07 | 0.98 | ||||||||||
Lapsed/cancelled | -55,000 | 4.03 | 1.12 | |||||||||||
Outstanding as of March 31, 2013 and 2014 | 25,000 | 1.65 | 0.95 | 1.61 | ||||||||||
Exercisable as of March 31, 2014 | 25,000 | 1.65 | 1.05 | 0.61 | ||||||||||
The aggregate intrinsic values of the stock options outstanding as of March 31, 2013 and 2014 were $3 and $27, respectively. | ||||||||||||||
No stock options were exercised during the year ended March 31, 2013 and 2014. | ||||||||||||||
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||
17 | SEGMENT INFORMATION | |||||||
The Group's chief operating decision maker evaluates segment performance and allocates resources based on several factors, of which the primary financial measure is operating income. | ||||||||
The Group operates in two segments, Metal stamping and mechanical OEM segment and Electric OEM segment. The Metal stamping and mechanical OEM segment focuses on manufacturing and sale of metal parts and components. The Electric OEM segment focuses on manufacturing and sale of plastic and electronic parts and components. | ||||||||
Intersegment sales arise from transfer of goods between segments. These sales are generally at price consistent with what the Group would charge third parties for similar goods. A summary of the net sales, profitability information and asset information by segment and geographical areas is shown below: | ||||||||
Year ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
$ | $ | $ | ||||||
Net sales: | ||||||||
Metal stamping and Mechanical OEM: | ||||||||
Unaffiliated customers | 14,689 | 14,646 | 13,820 | |||||
Intersegment sales | 8,585 | - | - | |||||
23,274 | 14,646 | 13,820 | ||||||
Electric OEM: | ||||||||
Unaffiliated customers | 10,681 | 7,287 | 9,116 | |||||
Intersegment sales | 11,914 | - | - | |||||
22,595 | 7,287 | 9,116 | ||||||
Intersegment eliminations | -20,499 | - | - | |||||
Total net sales | 25,370 | 21,933 | 22,936 | |||||
Operating income: | ||||||||
Metal stamping and Mechanical OEM | 428 | 319 | 527 | |||||
Electric OEM | 71 | 142 | 352 | |||||
Corporate | -269 | -106 | -86 | |||||
Total operating income | 230 | 355 | 793 | |||||
Interest expense: | ||||||||
Metal stamping and Mechanical OEM | 14 | 6 | 1 | |||||
Electric OEM | 10 | 3 | - | |||||
Total interest expense | 24 | 9 | 1 | |||||
Depreciation and amortization expense: | ||||||||
Metal stamping and Mechanical OEM | 393 | 353 | 306 | |||||
Electric OEM | 277 | 233 | 251 | |||||
Total depreciation and amortization | 670 | 586 | 557 | |||||
Capital expenditure: | ||||||||
Metal stamping and Mechanical OEM | 323 | 210 | 44 | |||||
Electric OEM | 32 | 109 | 29 | |||||
Total capital expenditure | 355 | 319 | 73 | |||||
As of March 31, | ||||||||
2013 | 2014 | |||||||
$ | $ | |||||||
Total assets: | ||||||||
Metal stamping and Mechanical OEM | 10,022 | 10,452 | ||||||
Electric OEM | 5,228 | 4,859 | ||||||
Corporate | 102 | 465 | ||||||
Total assets | 15,352 | 15,776 | ||||||
As of March 31, | ||||||||
2013 | 2014 | |||||||
$ | $ | |||||||
Long-lived assets: | ||||||||
Metal stamping and Mechanical OEM | 1,142 | 796 | ||||||
Electric OEM | 627 | 417 | ||||||
Total long-lived assets | 1,769 | 1,213 | ||||||
All of the Group's sales are co-ordinated through its head office in Hong Kong. The Group considers revenues to be generated by geographic area based on the physical location of customers. the breakdown by geographic area is as follows: | ||||||||
Year ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
$ | $ | $ | ||||||
Net sales: | ||||||||
Hong Kong and China | 5,933 | 6,148 | 5,086 | |||||
Other Asian countries | 995 | 1,415 | 1,489 | |||||
Europe | 14,030 | 13,503 | 15,564 | |||||
North America | 4,412 | 867 | 797 | |||||
25,370 | 21,933 | 22,936 | ||||||
All of the Group's long-lived assets are located in Hong Kong and China. | ||||||||
RELATED_PARTY_TRANSACTION
RELATED PARTY TRANSACTION | 12 Months Ended | |
Mar. 31, 2014 | ||
Related Party Transactions [Abstract] | ' | |
Related Party Transactions Disclosure [Text Block] | ' | |
18 | RELATED PARTY TRANSACTION | |
There is no material related party transaction for the years ended March 31, 2012, 2013 and 2014. | ||
EVENT_AFTER_THE_REPORTING_PERI
EVENT AFTER THE REPORTING PERIOD | 12 Months Ended | ||
Mar. 31, 2014 | |||
Subsequent Events [Abstract] | ' | ||
Subsequent Events [Text Block] | ' | ||
19 | EVENT AFTER THE REPORTING PERIOD | ||
On June 9, 2014, the Company entered into a sale and purchase agreement with Kayser Limited to acquire a 25% equity interest in Kayser Myanmar Manufacturing Co., Ltd. ("Kayser Myanmar"), which is engaged in manufacturing and assembling metal, plastics and electronic products (the "Acquisition"). The Acquisition will allow the Company to further expand its business in Myanmar. The total consideration for the transaction is approximately $25 in cash. The transaction cost in relation to the Acquisition is expected to be not significant. | |||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (POLICIES) | 12 Months Ended | ||
Mar. 31, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Consolidation, Policy [Policy Text Block] | ' | ||
(a) Principles of consolidation - The consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated on consolidation. The results of subsidiaries acquired have been consolidated from the date of acquisition. | |||
Equity Method Investments, Policy [Policy Text Block] | ' | ||
(b) Investments under equity method - The investments for which the Group has the ability to exercise significant influence are accounted for under the equity method. Under the equity method, original investments are recorded at cost and adjusted by the Group's share of undistributed earnings or losses of these entities, the amortization of intangible assets recognized upon purchase price allocation and dividend distributions or subsequent investments. All unrecognized inter-company profits and losses have been eliminated under the equity method. | |||
When the estimated amount to be realized from the investments falls below its carrying value, an impairment charge is recognized in the consolidated statements of operations when the decline in value is considered other than temporary. | |||
Cash and Cash Equivalents, Unrestricted Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||
(c) Cash and cash equivalents - Cash and cash equivalents consist of cash on hand, demand deposits, highly liquid investments which are unrestricted as to withdrawal and use, and which have maturities of three months or less when purchased, and are readily convertible to known amount of cash. | |||
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||
(d) Restricted cash - Restricted cash represents the amount of cash pledged as securities for the credit facilities provided by a financial institution. | |||
Trade and Other Accounts Receivable, Policy [Policy Text Block] | ' | ||
(e) Accounts receivable - Accounts receivable primarily represent amounts due from customers, that are typically non-interest bearing and are initially recorded at invoiced amount. The Group reviews its accounts receivable on a periodic basis and records allowances when there is a doubt as to the collectability of the balance. In evaluating the collectability of the accounts receivable balances, the Group considers various factors, including the age of the balance, customer specific facts and economic conditions. Accounts receivable balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group does not have any off-balance-sheet credit exposure related to its customers. | |||
Inventory, Policy [Policy Text Block] | ' | ||
(f) Inventories - Inventories are stated at the lower of cost determined by the first in first out method, or market value. Work-in-progress and finished goods consist of raw materials, direct labour and overheads associated with the manufacturing process. Write down of potential obsolete or slow moving inventories is recorded based on management's assumptions about future demands and market conditions. | |||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ||
(g) Property, plant and equipment - Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed on a straight line basis over the estimated useful lives of 10 years for machinery and equipment and 2 to 5 years for other property, plant and equipment. Assets held under capital leases are depreciated over the shorter of their lease period or estimated useful lives on the same basis as owned assets unless the ownership of these assets transfers to the Group by the end of the lease term over the estimated useful lives. | |||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | ||
(h) Impairment or disposal of long-lives assets - The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow were to be less than the carrying amount of the assets, the Group would recognize an impairment loss based on the fair value of the assets. | |||
No impairment expenses are recognized for long-lived assets during the years ended March 31, 2012, 2013 and 2014. | |||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | ||
(i) Concentration of credit risk - Financial instruments that potentially expose the Group to concentration of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable and loan receivable. The Group places its cash and cash equivalents and restricted cash with financial institutions with high credit ratings and quality. | |||
The risks with respect to accounts receivables and loan receivable are mitigated by credit evaluations performed on the customers or debtors and ongoing monitoring of outstanding balances. The Group establishes an allowance for doubtful accounts based upon estimates, factors surrounding the credit risk of specific customers and other information. Accounts receivable and loan receivable are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The accounts receivable from customers with individual balances over 10% of the accounts receivable represent 81%, 62% and 54% of the balances of accounts receivable as of March 31, 2012, 2013 and 2014, respectively. The loan receivable from a supplier represents 100% of the balance of loan receivable as of March 31, 2013 and 2014. | |||
Revenue Recognition, Policy [Policy Text Block] | ' | ||
(j) Revenue recognition - The Group recognizes revenue from the sale of products, when all of the following conditions are met: | |||
· | Persuasive evidence of an arrangement exists; | ||
· | Delivery has occurred; | ||
· | Price to the customer is fixed or determinable; and | ||
· | Collectability is reasonably assured. | ||
Revenue from sales of products is recognized when the title is passed to customers upon shipment and when collectability is reasonably assured. The Group does not provide its customers with the right of return (except for quality) or price protection. There are no customer acceptance provisions associated with the Group's products. All sales are based on firm customer orders with fixed terms and conditions, which generally cannot be modified. | |||
Staff Retirement Plan Costs [Policy Text Block] | ' | ||
(k) Staff retirement plan costs - The Group's costs related to the staff retirement plans (see note 15) are charged to the consolidated statement of operations as incurred. | |||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' | ||
(l) Foreign currency translations and transactions - The functional and reporting currency of the Company is the United States Dollars ("U.S. dollars"). All transactions in currencies other than functional currencies of the Company during the year are remeasured at the exchange rates prevailing on the respective transaction dates. Monetary assets and liabilities existing at the balance sheet date denominated in currencies other than functional currencies are remeasured at the exchange rates on that date. Exchange differences are recorded in the consolidated statements of operations. | |||
The books and records of the Company's major subsidiaries are maintained in their respective local currencies, the Hong Kong dollars or Renminbi, which are also their respective functional currencies. All assets and liabilities are translated at the rates of exchange prevailing at the balance sheet date and all income and expense items are translated at the average rates of exchange over the year. All exchange differences arising from the translation of subsidiaries' financial statements are recorded as a component of comprehensive income (loss). | |||
Income Tax, Policy [Policy Text Block] | ' | ||
(m) Income taxes - Deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities, and operating loss and tax credit carryforwards using enacted tax rates that will be in effect for the period in which the differences are expected to reverse. The Group records a valuation allowance against the amount of deferred tax assets that it determines is not more likely than not of being realized. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. | |||
The Group recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group records interest related to unrecognized tax benefits and penalties, if any, within income tax benefits (expenses). | |||
Use of Estimates, Policy [Policy Text Block] | ' | ||
(n) Use of estimates - The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses for the periods presented. Actual results could differ from those estimates. The significant accounting estimate, which has had an impact on the consolidated financial statements, includes allowances for doubtful receivables. | |||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ||
(o) Stock-based compensation - The Group has a stock-based employee compensation plan, as be more fully described in note 16. The Group measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized over the period during which an employee is required to provide service, the requisite service period (usually the vesting period), in exchange for the award. The grant-date fair value of employee stock options and similar instruments are estimated using Black-Scholes option-pricing model. | |||
Shares issued to consultants in exchange for consulting services are measured at the fair values of the services received, which are measured by reference to the fair value of the shares granted because fair value of consulting service received cannot be reliably measured. The fair values of the services received are recognized as expenses, with a corresponding increase in equity (additional paid-in capital), when the counterparties render services, unless the services qualify for recognition as assets. | |||
Revenue Recognition Leases, Operating [Policy Text Block] | ' | ||
(p) Operating leases - Leases in which substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statement of operations on a straight-line basis over the lease periods. | |||
Earnings Per Share, Policy [Policy Text Block] | ' | ||
(q) Net income per share - Basic net income per share is computed by dividing net income attributable to the Company by the weighted average number of common shares outstanding during the year. Diluted net income attributable to the Company per share give effect to all dilutive potential common shares outstanding during the year. The weighted average number of common shares outstanding is adjusted to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. | |||
Comprehensive Income, Policy [Policy Text Block] | ' | ||
(r) Comprehensive income (loss) - Comprehensive income (loss) includes net income and foreign currency translation adjustments and is presented net of tax, the amounts of nil, $16 and $(9) for the years ended March 31, 2012, 2013 and 2014, respectively. | |||
The Group presents the components of net income, the components of other comprehensive income and total comprehensive income in two separate but consecutive statements. | |||
Fair Value Measurement and Financial Instruments [Policy Text Block] | ' | ||
(s) Fair value measurement and financial instruments - The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Under this hierarchy, there are three levels of inputs that may be used to measure fair value: | |||
· | Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | ||
· | Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | ||
· | Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | ||
Determining which category an asset or liability falls within the hierarchy requires significant judgment. | |||
The Group did not have any financial instruments that were required to be measured at fair value on a recurring basis as of March 31, 2013 and 2014. As of March 31, 2013 and 2014, the Group did not have any nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements, at least annually, on a recurring basis, nor did the Group have any assets or liabilities measured at fair value on a non-recurring basis. | |||
The carrying amounts of financial instruments, which consist of cash and cash equivalents, restricted cash, accounts receivable, amount due from an equity method investee, loan receivable, accounts payable and other liabilities approximate their fair values due to the short term nature of these instruments. | |||
Noncontrolling Interest [Policy Text Block] | ' | ||
(t) Non-controlling interest - Non-controlling interest have been reported as a component of equity in the consolidated balance sheets and consolidated statements of changes of equity and comprehensive income (loss) for all periods presented. | |||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||
(u) Recent issued accounting standards adopted - In December 2011, the Financial Accounting Standards Board ("FASB") has issued an authoritative pronouncement related to Disclosures about Offsetting Assets and Liabilities. The guidance requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. In January 2013, the FASB further clarifies that ordinary trade receivables and receivables are not in the scope of the authoritative pronouncement and the pronouncement applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in the FASB Accounting Standards Codification™ (Codification) or subject to a master netting arrangement or similar agreement. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. The Group adopted this pronouncement effective from April 1, 2013, which did not have a significant effect on the Group's consolidated financial statements. | |||
In February 2013, the FASB issued an authoritative pronouncement related to reporting of amounts reclassified out of accumulated other comprehensive income, to improve the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. | |||
The guidance expands the exiting disclosure requirement for reporting net income or other comprehensive income in financial statements, including: | |||
· | Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. | ||
· | Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense. | ||
The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). The amendments are effective for reporting periods beginning after December 15, 2012, for public companies. Early adoption is permitted. The adoption of this pronouncement did not have a significant impact on its financial condition or results of operations. | |||
In March 2013, the FASB has issued an authoritative pronouncement related to parent's accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. When a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a non-profit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity, the parent is required to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The Group does not expect the adoption of this pronouncement will have a significant impact on its financial condition or results of operations. | |||
The amendments in this pronouncement are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The amendments should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. Early adoption is permitted. If an entity elects to early adopt the amendments, it should apply them as of the beginning of the entity's fiscal year of adoption. The adoption of this pronouncement did not have a significant impact on its financial condition or results of operations. | |||
Recent Issued Accounting Standards Not Yet Adopted [Policy Text Block] | ' | ||
(v) Recent issued accounting standards not yet adopted - In April 2014, the FASB issued a new pronouncement which amends to change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization's operations and financial results. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. This disclosure will provide users with information about the ongoing trends in a reporting organization's results from continuing operations. The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. Early adoption is permitted. The Group does not expect the adoption of this guidance will have a significant effect on its consolidated financial statements. | |||
In July 2013, ASU 2013-11 was issued because GAAP does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carry forward, a similar tax loss, or a tax credit carryforward exists. The amendment provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. We anticipate there will be no effect on our financial position or results of operations when adopted. | |||
INCOME_TAXES_TABLES
INCOME TAXES (TABLES) | 12 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | ' | ||||||||||
The components of income (loss) before income taxes are as follows: | |||||||||||
Year ended March 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
$ | $ | $ | |||||||||
Hong Kong | 779 | 366 | 649 | ||||||||
China | -409 | 45 | 118 | ||||||||
370 | 411 | 767 | |||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||||
The provision for income taxes consists of the following: | |||||||||||
Year ended March 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
$ | $ | $ | |||||||||
Hong Kong | |||||||||||
Current tax | 179 | 68 | 155 | ||||||||
Deferred tax | 7 | -121 | -15 | ||||||||
186 | -53 | 140 | |||||||||
China | |||||||||||
Current tax | - | 16 | 32 | ||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||||
A reconciliation between the provision for income taxes computed by applying the Hong Kong profits tax rate to profit before income taxes, the actual provision for income taxes is as follows: | |||||||||||
Year ended March 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
% | % | % | |||||||||
Profits tax rate in Hong Kong | 16.5 | 16.5 | 16.5 | ||||||||
Non-deductible items/non-taxable income | 68.3 | 5.9 | 10.3 | ||||||||
Changes in valuation allowances | 0.3 | -31.6 | -4.4 | ||||||||
Under(over)provision of profits tax in prior year | 1.4 | -0.5 | -2 | ||||||||
Effect of different tax rate of subsidiaries operating in other jurisdictions | -36.3 | -3.9 | -2.7 | ||||||||
Other | 0.1 | 4.6 | 4.6 | ||||||||
Effective tax rate | 50.3 | -9 | 22.3 | ||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||||
Deferred income tax (assets) liabilities are as follows: | |||||||||||
As of March 31, | |||||||||||
2013 | 2014 | ||||||||||
$ | $ | ||||||||||
Deferred tax liability: | |||||||||||
Property, plant and equipment | 72 | 48 | |||||||||
Deferred tax asset: | |||||||||||
Tax loss carryforwards | -818 | -807 | |||||||||
Valuation allowance | 805 | 803 | |||||||||
Total net deferred tax asset | -13 | -4 | |||||||||
Net deferred tax liability | 59 | 44 | |||||||||
Summary of Valuation Allowance [Table Text Block] | ' | ||||||||||
Movement of valuation allowances are as follows: | |||||||||||
Year ended March 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
$ | $ | $ | |||||||||
At the beginning of the year | 766 | 767 | 805 | ||||||||
Changes in prior year tax losses carry forward | - | 168 | 32 | ||||||||
Current year addition (reduction) | 1 | -130 | -34 | ||||||||
At the end of the year | 767 | 805 | 803 | ||||||||
INVENTORIES_TABLES
INVENTORIES (TABLES) | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||
Inventories consisted of the following: | ||||||||
As of March 31, | ||||||||
2013 | 2014 | |||||||
$ | $ | |||||||
Raw materials | 1,770 | 2,013 | ||||||
Work in progress | 287 | 192 | ||||||
Finished goods | 900 | 1,495 | ||||||
2,957 | 3,700 | |||||||
PROPERTY_PLANT_AND_EQUIPMENT_N1
PROPERTY, PLANT AND EQUIPMENT, NET (TABLES) | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment [Table Text Block] | ' | |||||||
Property, plant and equipment, net consist of the following: | ||||||||
As of March 31, | ||||||||
2013 | 2014 | |||||||
$ | $ | |||||||
At cost: | ||||||||
Machinery and equipment | 12,124 | 11,933 | ||||||
Furniture and fixtures | 444 | 437 | ||||||
Leasehold improvements | 483 | 483 | ||||||
Motor vehicles | 87 | 87 | ||||||
Total | 13,138 | 12,940 | ||||||
Less: Accumulated depreciation and impairment | -11,369 | -11,727 | ||||||
Property, plant and equipment, net | 1,769 | 1,213 | ||||||
INVESTMENTS_IN_EQUITY_METHOD_I1
INVESTMENTS IN EQUITY METHOD INVESTEES (TABLES) | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||
Schedule of Equity Method Investments [Table Text Block] | ' | |||||||
The following table provides a reconciliation of the investments in equity method investees in the Group's consolidated balance sheet as of March 31, 2013 and 2014 and the amount of underlying equity in net assets of the equity investees: | ||||||||
As of March 31, | ||||||||
2013 | 2014 | |||||||
$ | $ | |||||||
The Group's proportionate share of equity in the net assets of equity investees | 8 | 5 | ||||||
Less: Accumulated impairment losses recognized | -8 | -5 | ||||||
Investments in equity investees reported in the consolidated balance sheet | - | - | ||||||
RESTRICTED_CASH_TABLES
RESTRICTED CASH (TABLES) | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Restricted Cash and Investments [Abstract] | ' | |||||||
Schedule of Line of Credit Facilities [Table Text Block] | ' | |||||||
As of March 31, | ||||||||
2013 | 2014 | |||||||
$ | $ | |||||||
Maximum credit facilities available to the Group | 2,570 | 2,570 | ||||||
Amount utilized | - | 805 | ||||||
LONGTERM_LOANS_TABLES
LONG-TERM LOANS (TABLES) | 12 Months Ended | ||||
Mar. 31, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | ||||
Long-term loans consist of the followings: | |||||
As of March 31, | |||||
2013 | 2014 | ||||
$ | $ | ||||
Unsecured bank loans repayable monthly with | |||||
maturity date of August 20, 2013, interest at | |||||
1.75% p.a. below the Bank's Prime Rate in | |||||
Hong Kong | 56 | - | |||
Unsecured bank loans repayable monthly with | |||||
maturity date of August 26, 2013, interest at | |||||
1.75% p.a. below the Bank's Prime Rate in | |||||
Hong Kong | 56 | - | |||
Total long-term loans | 112 | - | |||
Current portion of long-term loans | -112 | - | |||
Non-current portion of long-term loans | - | - | |||
ACCRUED_EXPENSES_AND_OTHER_CUR1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (TABLES) | 12 Months Ended | |||||
Mar. 31, 2014 | ||||||
Accrued Liabilities Current and Other Liabilities Current [Abstract] | ' | |||||
Schedule of Accrued Liabilities [Table Text Block] | ' | |||||
Accrued expenses and other current liabilities consisted of the following: | ||||||
As of March 31, | ||||||
2013 | 2014 | |||||
$ | $ | |||||
Accrued payroll and employee benefits | 885 | 1,191 | ||||
Deposits received from customers | 16 | 50 | ||||
Accrued audit fee | 252 | 260 | ||||
Others | 233 | 229 | ||||
1,386 | 1,730 | |||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (TABLES) | 12 Months Ended | ||||
Mar. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule Of Future Minimum Rental Payments For Operating Leases [Table Text Block] | ' | ||||
As of March 31, 2014, the Group is committed under operating leases requiring minimum lease payments as follows: | |||||
$ | |||||
Year ending March 31, | |||||
2015 | 886 | ||||
2016 | 798 | ||||
2017 | 707 | ||||
2,391 | |||||
CONCENTRATIONS_OF_CREDIT_RISK_1
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS (TABLES) | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Concentration Of Credit Risk and Major Customers [Abstract] | ' | |||||||
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | ' | |||||||
Accounts receivable from the three customers with the largest receivable balances as of March 31, 2013 and 2014 are as follows: | ||||||||
Percentage of | ||||||||
accounts receivable | ||||||||
2013 | 2014 | |||||||
% | % | |||||||
Customer A | 36.6 | 31.8 | ||||||
Customer B | 12.4 | 11.6 | ||||||
Customer C | 13.2 | N/A | ||||||
Customer D | N/A | 10.7 | ||||||
Three largest receivable balances | 62.2 | 54.1 | ||||||
Movements Of Allowances For Doubtful Account [Table Text Block] | ' | |||||||
Details of the movements of the allowances for doubtful account are as follows: | ||||||||
Year ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
$ | $ | $ | ||||||
At beginning of year | - | - | 6 | |||||
Allowance for the year | - | 6 | - | |||||
At end of year | - | 6 | 6 | |||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | ' | |||||||
A substantial percentage of the Group's sales are made to three customers and are typically on an open account basis. Customers accounting for 10% or more of total net sales in any of the years ended March 31, 2012, 2013 and 2014 are as follows: | ||||||||
Year ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
% | % | % | ||||||
Customer A (note a) | 25.1 | 33 | 36.9 | |||||
Customer B (note a) | N/A | 12 | N/A | |||||
Customer C (note b) | 16.4 | N/A | N/A | |||||
Customer D (note c) | N/A | 11.7 | N/A | |||||
Customer E (note b) | 11.3 | N/A | N/A | |||||
Notes: | ||||||||
(a) | Sales to this customer were reported in both of the Metal Stamping and Mechanical OEM and Electric OEM operating segments. | |||||||
(b) | Sales to this customer were reported in the Electric OEM operating segment. | |||||||
(c) | Sales to this customer were reported in the Metal Stamping and Mechanical OEM operating segment. | |||||||
NET_INCOME_PER_SHARE_TABLES
NET INCOME PER SHARE (TABLES) | 12 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||
The following table sets forth the computation of basic and diluted net income per share for years indicated: | |||||||||||
Year ended March 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
$ | $ | $ | |||||||||
Net income attributable to Highway Holdings | |||||||||||
Limited's shareholders, basic and diluted | 184 | 448 | 596 | ||||||||
Shares: | |||||||||||
Weighted average common shares used in | |||||||||||
computing basic net income per share | 3,777,850 | 3,778,825 | 3,778,825 | ||||||||
Effect of dilutive securities: | |||||||||||
Weighted average shares from assumed exercise | |||||||||||
of stock options and issuance of common shares | 10,452 | 2,482 | 9,779 | ||||||||
Weighted average common shares used in | |||||||||||
computing diluted net income per share | 3,788,302 | 3,781,307 | 3,788,604 | ||||||||
Net income per share, basic | 0.05 | 0.12 | 0.16 | ||||||||
Net income per share, diluted | 0.05 | 0.12 | 0.16 | ||||||||
STOCK_OPTIONS_TABLES
STOCK OPTIONS (TABLES) | 12 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Stock Option [Abstract] | ' | |||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||||||||
A summary of stock option activity during the years ended March 31, 2012, 2013 and 2014 is as follows: | ||||||||||||||
Weighted | Weighted | |||||||||||||
Weighted | average | average | ||||||||||||
Number of | average | fair value | remaining | |||||||||||
stock | exercise | per stock | contractual | |||||||||||
options | price | option | life (years) | |||||||||||
$ | $ | |||||||||||||
Outstanding as of April 1, 2011 | 123,000 | 3.29 | 1.04 | 1.44 | ||||||||||
Exercised | -3,000 | 1.65 | 0.95 | |||||||||||
Lapsed/cancelled | -40,000 | 3.42 | 1 | |||||||||||
Outstanding as of March 31, 2012 | 80,000 | 3.29 | 1.07 | 0.98 | ||||||||||
Lapsed/cancelled | -55,000 | 4.03 | 1.12 | |||||||||||
Outstanding as of March 31, 2013 and 2014 | 25,000 | 1.65 | 0.95 | 1.61 | ||||||||||
Exercisable as of March 31, 2014 | 25,000 | 1.65 | 1.05 | 0.61 | ||||||||||
SEGMENT_INFORMATION_TABLES
SEGMENT INFORMATION (TABLES) | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||
A summary of the net sales, profitability information and asset information by segment and geographical areas is shown below: | ||||||||
Year ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
$ | $ | $ | ||||||
Net sales: | ||||||||
Metal stamping and Mechanical OEM: | ||||||||
Unaffiliated customers | 14,689 | 14,646 | 13,820 | |||||
Intersegment sales | 8,585 | - | - | |||||
23,274 | 14,646 | 13,820 | ||||||
Electric OEM: | ||||||||
Unaffiliated customers | 10,681 | 7,287 | 9,116 | |||||
Intersegment sales | 11,914 | - | - | |||||
22,595 | 7,287 | 9,116 | ||||||
Intersegment eliminations | -20,499 | - | - | |||||
Total net sales | 25,370 | 21,933 | 22,936 | |||||
Operating income: | ||||||||
Metal stamping and Mechanical OEM | 428 | 319 | 527 | |||||
Electric OEM | 71 | 142 | 352 | |||||
Corporate | -269 | -106 | -86 | |||||
Total operating income | 230 | 355 | 793 | |||||
Interest expense: | ||||||||
Metal stamping and Mechanical OEM | 14 | 6 | 1 | |||||
Electric OEM | 10 | 3 | - | |||||
Total interest expense | 24 | 9 | 1 | |||||
Depreciation and amortization expense: | ||||||||
Metal stamping and Mechanical OEM | 393 | 353 | 306 | |||||
Electric OEM | 277 | 233 | 251 | |||||
Total depreciation and amortization | 670 | 586 | 557 | |||||
Capital expenditure: | ||||||||
Metal stamping and Mechanical OEM | 323 | 210 | 44 | |||||
Electric OEM | 32 | 109 | 29 | |||||
Total capital expenditure | 355 | 319 | 73 | |||||
As of March 31, | ||||||||
2013 | 2014 | |||||||
$ | $ | |||||||
Total assets: | ||||||||
Metal stamping and Mechanical OEM | 10,022 | 10,452 | ||||||
Electric OEM | 5,228 | 4,859 | ||||||
Corporate | 102 | 465 | ||||||
Total assets | 15,352 | 15,776 | ||||||
As of March 31, | ||||||||
2013 | 2014 | |||||||
$ | $ | |||||||
Long-lived assets: | ||||||||
Metal stamping and Mechanical OEM | 1,142 | 796 | ||||||
Electric OEM | 627 | 417 | ||||||
Total long-lived assets | 1,769 | 1,213 | ||||||
Schedule Of Segment Reporting Information By Geographical Segment [Table Text Block] | ' | |||||||
the breakdown by geographic area is as follows: | ||||||||
Year ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
$ | $ | $ | ||||||
Net sales: | ||||||||
Hong Kong and China | 5,933 | 6,148 | 5,086 | |||||
Other Asian countries | 995 | 1,415 | 1,489 | |||||
Europe | 14,030 | 13,503 | 15,564 | |||||
North America | 4,412 | 867 | 797 | |||||
25,370 | 21,933 | 22,936 | ||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (DETAILS TEXTUAL) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Loans Receivable Percentage | 100.00% | 100.00% | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net Of Tax | ($9) | $16 | $0 |
Impairment of Long-Lived Assets to be Disposed of | $0 | $0 | $0 |
Accounts Receivable [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Accounts Receivable Percentage | 54.00% | 62.00% | 81.00% |
Loans Receivable Percentage | 54.10% | 62.20% | ' |
Machinery and Equipment [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '10 years | ' | ' |
Maximum [Member] | Other Machinery and Equipment [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '5 years | ' | ' |
Minimum [Member] | Other Machinery and Equipment [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '2 years | ' | ' |
INCOME_TAXES_DETAILS
INCOME TAXES (DETAILS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Income Tax Examination [Line Items] | ' | ' | ' |
Income before income taxes | $767 | $411 | $370 |
HONG KONG [Member] | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' |
Income before income taxes | 649 | 366 | 779 |
CHINA [Member] | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' |
Income before income taxes | $118 | $45 | ($409) |
INCOME_TAXES_DETAILS_1
INCOME TAXES (DETAILS 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Provision For Income Taxes [Line Items] | ' | ' | ' |
Deferred tax | ($15) | ($121) | $7 |
Income tax expenses (Benefit) | 172 | -37 | 186 |
HONG KONG [Member] | ' | ' | ' |
Provision For Income Taxes [Line Items] | ' | ' | ' |
Current tax | 155 | 68 | 179 |
Deferred tax | -15 | -121 | 7 |
Income tax expenses (Benefit) | 140 | -53 | 186 |
CHINA [Member] | ' | ' | ' |
Provision For Income Taxes [Line Items] | ' | ' | ' |
Current tax | $32 | $16 | $0 |
INCOME_TAXES_DETAILS_2
INCOME TAXES (DETAILS 2) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Provision For Income Taxes [Line Items] | ' | ' | ' |
Profits tax rate in Hong Kong. | 16.50% | 16.50% | 16.50% |
Non-deductible items/non-taxable income | 10.30% | 5.90% | 68.30% |
Changes in valuation allowances | -4.40% | -31.60% | 0.30% |
Under(over)provision of profits tax in prior year | -2.00% | -0.50% | 1.40% |
Effect of different tax rate of subsidiaries operating in other jurisdictions | -2.70% | -3.90% | -36.30% |
Other | 4.60% | 4.60% | 0.10% |
Effective tax rate | 22.30% | -9.00% | 50.30% |
INCOME_TAXES_DETAILS_3
INCOME TAXES (DETAILS 3) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Deferred tax liability: | ' | ' | ' | ' |
Property, plant and equipment | $48 | $72 | ' | ' |
Deferred tax asset: | ' | ' | ' | ' |
Tax loss carryforwards | -807 | -818 | ' | ' |
Valuation allowance | 803 | 805 | 767 | 766 |
Total net deferred tax asset | -4 | -13 | ' | ' |
Net deferred tax liability | $44 | $59 | ' | ' |
INCOME_TAXES_DETAILS_4
INCOME TAXES (DETAILS 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Valuation Allowance [Line Items] | ' | ' | ' |
At the beginning of the year | $805 | $767 | $766 |
Changes in prior year tax losses carry forward | 32 | 168 | 0 |
Current year (reduction) addition | -34 | -130 | 1 |
At the end of the year | $803 | $805 | $767 |
INCOME_TAXES_DETAILS_TEXTUAL
INCOME TAXES (DETAILS TEXTUAL) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Income Tax Examination [Line Items] | ' | ' | ' |
Effect of different tax rate of subsidiaries operating in other jurisdictions | -2.70% | -3.90% | -36.30% |
Deferred Tax Assets Operating Loss Carryforwards Indefinitely | $4,893 | $4,959 | ' |
Operating Loss Carry forward Expiration Date | ' | 'expire five years from respective financial years incurring the losses | 'expire five years from respective financial years incurring the losses |
HONG KONG [Member] | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' |
Effect of different tax rate of subsidiaries operating in other jurisdictions | 16.50% | 16.50% | 16.50% |
CHINA [Member] | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 25.00% | ' | ' |
INVENTORIES_DETAILS
INVENTORIES (DETAILS) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Raw materials | $2,013 | $1,770 |
Work in progress | 192 | 287 |
Finished goods | 1,495 | 900 |
Inventory Net | $3,700 | $2,957 |
INVENTORIES_DETAILS_TEXTUAL
INVENTORIES (DETAILS TEXTUAL) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Inventory [Line Items] | ' | ' | ' |
Slow Moving Inventories | $125 | $56 | $199 |
PROPERTY_PLANT_AND_EQUIPMENT_N2
PROPERTY, PLANT AND EQUIPMENT, NET (DETAILS) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
At cost: | ' | ' |
Machinery and equipment | $11,933 | $12,124 |
Furniture and fixtures | 437 | 444 |
Leasehold improvements | 483 | 483 |
Motor vehicles | 87 | 87 |
Total | 12,940 | 13,138 |
Less: Accumulated depreciation and impairment | -11,727 | -11,369 |
Property, plant and equipment, net | $1,213 | $1,769 |
PROPERTY_PLANT_AND_EQUIPMENT_N3
PROPERTY, PLANT AND EQUIPMENT, NET (DETAILS TEXTUAL) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation | $557 | $586 | $670 |
INVESTMENTS_IN_EQUITY_METHOD_I2
INVESTMENTS IN EQUITY METHOD INVESTEES (DETAILS) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Equity Method Investments [Line Items] | ' | ' |
The Group's proportionate share of equity in the net assets of equity investees | $5 | $8 |
Less: Accumulated impairment losses recognized | -5 | -8 |
Investments in equity investees reported in the consolidated balance sheet | $0 | $0 |
INVESTMENTS_IN_EQUITY_METHOD_I3
INVESTMENTS IN EQUITY METHOD INVESTEES (DETAILS TEXTUAL) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 | Aug. 05, 2003 | Mar. 31, 2013 | Apr. 30, 2009 |
In Thousands, unless otherwise specified | Ktl [Member] | Xenon Automation [Member] | Xenon Automation [Member] | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | 50.00% | ' | 50.00% |
Business Acquisition Contingent Consideration Potential Cash Payments | ' | ' | $5 | ' | $3 |
Due From Related Parties, Current | $0 | $110 | ' | $110 | ' |
RESTRICTED_CASH_DETAILS
RESTRICTED CASH (DETAILS) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Restricted Cash [Line Items] | ' | ' |
Maximum credit facilities available to the Group | $2,570 | $2,570 |
Amount utilized | $805 | $0 |
RESTRICTED_CASH_DETAILS_TEXTUA
RESTRICTED CASH (DETAILS TEXTUAL) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Restricted Cash [Line Items] | ' | ' |
Restricted cash (note 7) | $643 | $643 |
LONGTERM_LOANS_DETAILS
LONG-TERM LOANS (DETAILS) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Total long-term loans | $0 | $112 |
Current portion of long-term loans | 0 | 112 |
Non-current portion of long-term loans | 0 | 0 |
August 20, 2013 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term loans | 0 | 56 |
August 26, 2013 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term loans | $0 | $56 |
LONGTERM_LOANS_DETAILS_TEXTUAL
LONG-TERM LOANS (DETAILS TEXTUAL) | 12 Months Ended |
Mar. 31, 2014 | |
August 20, 2013 [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Basis Spread on Variable Rate | 1.75% |
August 26, 2013 [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Basis Spread on Variable Rate | 1.75% |
ACCRUED_EXPENSES_AND_OTHER_CUR2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (DETAILS) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of accrued liabilities current and Other liabilities current table [Line Items] | ' | ' |
Accrued payroll and employee benefits | $1,191 | $885 |
Deposits received from customers | 50 | 16 |
Accrued audit fee | 260 | 252 |
Others | 229 | 233 |
Accrued Liabilities and Other Liabilities Current | $1,730 | $1,386 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (DETAILS) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies [Line Items] | ' |
2015 | $886 |
2016 | 798 |
2017 | 707 |
Operating Leases, Future Minimum Payments Due | $2,391 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (DETAILS TEXTUAL) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Operating Leases, Rent Expense, Net | $1,185 | $1,258 | $1,301 |
Professional Fees | $5 | $48 | ' |
TREASURY_STOCK_DETAILS_TEXTUAL
TREASURY STOCK (DETAILS TEXTUAL) (USD $) | 1 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2011 | Feb. 28, 2010 | Mar. 31, 2011 | Mar. 31, 2014 | Mar. 31, 2013 |
Equity [Line Items] | ' | ' | ' | ' | ' |
Stock Repurchase Program, Authorized Amount | ' | $1,000 | $15 | ' | ' |
Stock Repurchased During Period, Shares | ' | ' | 6,049 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 1,000 | ' | ' | ' | ' |
Treasury Stock, Number of Shares Held | ' | ' | ' | 5,049 | 5,049 |
CONCENTRATIONS_OF_CREDIT_RISK_2
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS (DETAILS) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Concentration Of Credit Risk And Major Customers [Line Items] | ' | ' |
Loans Receivable Percentage | 100.00% | 100.00% |
Accounts Receivable [Member] | ' | ' |
Concentration Of Credit Risk And Major Customers [Line Items] | ' | ' |
Loans Receivable Percentage | 54.10% | 62.20% |
Accounts Receivable [Member] | Customer A [Member] | ' | ' |
Concentration Of Credit Risk And Major Customers [Line Items] | ' | ' |
Loans Receivable Percentage | 31.80% | 36.60% |
Accounts Receivable [Member] | Customer B [Member] | ' | ' |
Concentration Of Credit Risk And Major Customers [Line Items] | ' | ' |
Loans Receivable Percentage | 11.60% | 12.40% |
Accounts Receivable [Member] | Customer C [Member] | ' | ' |
Concentration Of Credit Risk And Major Customers [Line Items] | ' | ' |
Loans Receivable Percentage | 0.00% | 13.20% |
Accounts Receivable [Member] | Customer D [Member] | ' | ' |
Concentration Of Credit Risk And Major Customers [Line Items] | ' | ' |
Loans Receivable Percentage | 10.70% | 0.00% |
CONCENTRATIONS_OF_CREDIT_RISK_3
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS (DETAILS 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Concentration Of Credit Risk And Major Customers [Line Items] | ' | ' | ' |
At beginning of year | $6 | $0 | $0 |
Allowance for the year | 0 | 6 | 0 |
At end of year | $6 | $6 | $0 |
CONCENTRATIONS_OF_CREDIT_RISK_4
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS (DETAILS 2) | 12 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | ||||
Customer A [Member] | ' | ' | ' | |||
Concentration Of Credit Risk And Major Customers [Line Items] | ' | ' | ' | |||
Accounts Receivable Percentage | 36.90% | [1] | 33.00% | [1] | 25.10% | [1] |
Customer B [Member] | ' | ' | ' | |||
Concentration Of Credit Risk And Major Customers [Line Items] | ' | ' | ' | |||
Accounts Receivable Percentage | 0.00% | [1] | 12.00% | [1] | 0.00% | [1] |
Customer C [Member] | ' | ' | ' | |||
Concentration Of Credit Risk And Major Customers [Line Items] | ' | ' | ' | |||
Accounts Receivable Percentage | 0.00% | [2] | 0.00% | [2] | 16.40% | [2] |
Customer D [Member] | ' | ' | ' | |||
Concentration Of Credit Risk And Major Customers [Line Items] | ' | ' | ' | |||
Accounts Receivable Percentage | 0.00% | [3] | 11.70% | [3] | 0.00% | [3] |
Customer E [Member] | ' | ' | ' | |||
Concentration Of Credit Risk And Major Customers [Line Items] | ' | ' | ' | |||
Accounts Receivable Percentage | 0.00% | [2] | 0.00% | [2] | 11.30% | [2] |
[1] | Sales to this customer were reported in both of the Metal Stamping and Mechanical OEM and Electric OEM operating segments. | |||||
[2] | Sales to this customer were reported in the Electric OEM operating segment. | |||||
[3] | Sales to this customer were reported in the Metal Stamping and Mechanical OEM operating segment. |
NET_INCOME_PER_SHARE_DETAILS
NET INCOME PER SHARE (DETAILS) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Earnings Per Share [Line Items] | ' | ' | ' |
Net income attributable to Highway Holdings Limited's shareholders, basic and diluted | $596 | $448 | $184 |
Shares: | ' | ' | ' |
Weighted average common shares used in computing basic net income per share | 3,778,825 | 3,778,825 | 3,777,850 |
Effect of dilutive securities: | ' | ' | ' |
Weighted average shares from assumed exercise of stock options and issuance of common shares | 9,779 | 2,482 | 10,452 |
Weighted average common shares used in computing diluted net income per share | 3,788,604 | 3,781,307 | 3,788,302 |
Net income per share, basic (in dollars per share) | $0.16 | $0.12 | $0.05 |
Net income per share, diluted (in dollars per share) | $0.16 | $0.12 | $0.05 |
NET_INCOME_PER_SHARE_DETAILS_T
NET INCOME PER SHARE (DETAILS TEXTUAL) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 55,000 |
STAFF_RETIREMENT_PLANS_DETAILS
STAFF RETIREMENT PLANS (DETAILS TEXTUAL) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Staff Retirement Plans [Line Items] | ' | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent | 5.00% | ' | ' |
Defined Contribution Plan, Cost Recognized | $215 | $186 | $150 |
STOCK_OPTIONS_DETAILS
STOCK OPTIONS (DETAILS) (USD $) | 12 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 | |
Stock Option [Line Items] | ' | ' | ' | ' |
Number of stock options Outstanding, beginning | 25,000 | 80,000 | 123,000 | ' |
Number of stock options Exercised | ' | ' | -3,000 | ' |
Number of stock options Lapsed/cancelled | ' | -55,000 | -40,000 | ' |
Number of stock options Outstanding, ending | 25,000 | 25,000 | 80,000 | 123,000 |
Number of stock options Exercisable | 25,000 | ' | ' | ' |
Weighted average exercise price, Outstanding, beginning | $1.65 | $3.29 | $3.29 | ' |
Weighted average exercise price, Exercised | ' | ' | $1.65 | ' |
Weighted average exercise price, Lapsed/cancelled | ' | $4.03 | $3.42 | ' |
Weighted average exercise price, Outstanding, ending | $1.65 | $1.65 | $3.29 | $3.29 |
Weighted average exercise price, Exercisable | $1.65 | ' | ' | ' |
Weighted average fair value per stock option, Outstanding, beginning | $0.95 | $1.07 | $1.04 | ' |
Weighted average fair value per stock option, exercised | ' | ' | $0.95 | ' |
Weighted average fair value per stock option, Lapsed/cancelled | ' | $1.12 | $1 | ' |
Weighted average fair value per stock option, Outstanding, ending | $0.95 | $0.95 | $1.07 | $1.04 |
Weighted average fair value per stock option, Exercisable | $1.05 | ' | ' | ' |
Weighted average remaining contractual life (years), Outstanding, beginning | '1 year 7 months 10 days | '1 year 7 months 10 days | '11 months 23 days | '1 year 5 months 8 days |
Weighted average remaining contractual life (years), Exercisable, ending | '7 months 10 days | ' | ' | ' |
STOCK_OPTIONS_DETAILS_TEXTUAL
STOCK OPTIONS (DETAILS TEXTUAL) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Stock Option [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $27 | $3 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $0 | $0 |
Option Plan 2010 [Member] | ' | ' |
Stock Option [Line Items] | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 600,000 | ' |
SEGMENT_INFORMATION_DETAILS
SEGMENT INFORMATION (DETAILS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Intersegment sales | $22,936 | $21,933 | $25,370 |
Intersegment eliminations | 0 | 0 | -20,499 |
Total net sales | 22,936 | 21,933 | 25,370 |
Operating income: | 793 | 355 | 230 |
Interest expense: | 1 | 9 | 24 |
Depreciation and amortization expense: | 557 | 586 | 670 |
Capital expenditure: | 73 | 319 | 355 |
Total assets: | 15,776 | 15,352 | ' |
Long-lived assets: | 1,213 | 1,769 | ' |
Metal Stamping and Mechanical Oem [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Unaffiliated customers | 13,820 | 14,646 | 14,689 |
Intersegment sales | 0 | 0 | 8,585 |
Total net sales | 13,820 | 14,646 | 23,274 |
Operating income: | 527 | 319 | 428 |
Interest expense: | 1 | 6 | 14 |
Depreciation and amortization expense: | 306 | 353 | 393 |
Capital expenditure: | 44 | 210 | 323 |
Total assets: | 10,452 | 10,022 | ' |
Long-lived assets: | 796 | 1,142 | ' |
Electric [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Unaffiliated customers | 9,116 | 7,287 | 10,681 |
Intersegment sales | 0 | 0 | 11,914 |
Total net sales | 9,116 | 7,287 | 22,595 |
Operating income: | 352 | 142 | 71 |
Interest expense: | 0 | 3 | 10 |
Depreciation and amortization expense: | 251 | 233 | 277 |
Capital expenditure: | 29 | 109 | 32 |
Total assets: | 4,859 | 5,228 | ' |
Long-lived assets: | 417 | 627 | ' |
Corporate [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Operating income: | -86 | -106 | -269 |
Total assets: | $465 | $102 | ' |
SEGMENT_INFORMATION_DETAILS_1
SEGMENT INFORMATION (DETAILS 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Revenues | $22,936 | $21,933 | $25,370 |
HONG KONG [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Revenues | 5,086 | 6,148 | 5,933 |
Other Asian Countries [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Revenues | 1,489 | 1,415 | 995 |
Europe [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Revenues | 15,564 | 13,503 | 14,030 |
North America [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Revenues | $797 | $867 | $4,412 |
EVENT_AFTER_THE_REPORTING_PERI1
EVENT AFTER THE REPORTING PERIOD (DETAILS TEXTUAL) (Kayser Myanmar [member], USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Jun. 09, 2014 |
Kayser Myanmar [member] | ' |
Subsequent Event [Line Items] | ' |
Equity Method Investment, Ownership Percentage | 25.00% |
Sale of Stock, Consideration Received on Transaction | $25 |