NOTE 7 — BORROWINGS

Short-term Borrowings

Letters of Credit — The Company uses Hang Seng Bank to issue letters of credit on behalf of the Company, as needed, on a 100% cash collateralized basis. At September 30, 2013, the Company had outstanding letters of credit totaling $73,000. A like amount of cash, which was posted by the Company as collateral against these outstanding letters of credit, at September 30, 2013, has been classified by the Company as Restricted Cash on the balance sheet.

Long-term Borrowings

At September 30, 2013 and March 31, 2013, borrowings under long-term facilities consisted of the following (in thousands):


	September 30, 2013			March 31, 2013
	(Unaudited)
Capitalized lease obligations		58			73
Less current maturities		(43	)		(43	)

Long term borrowings	$	15		$	30