-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IaZ+0o1FOGt6yafPTw+0zham5ZKpuzhMvl6FD4afYiFbaMKQqHWH9RdR4+Dgx0Oh wDTTFvoUc/UHxLJg6Uz2bw== 0001000096-10-000063.txt : 20100727 0001000096-10-000063.hdr.sgml : 20100727 20100507162131 ACCESSION NUMBER: 0001000096-10-000063 CONFORMED SUBMISSION TYPE: CORRESP PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20100507 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BONSO ELECTRONICS INTERNATIONAL INC CENTRAL INDEX KEY: 0000846546 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRONIC COMPONENTS, NEC [3679] IRS NUMBER: 000000000 STATE OF INCORPORATION: K3 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: CORRESP BUSINESS ADDRESS: STREET 1: UNIT 1915-1916, 19/F, DELTA HOUSE STREET 2: 3 ON YIU STREET, SHEK MUN CITY: SHATIN STATE: K3 ZIP: 000000 BUSINESS PHONE: 01185226055822 MAIL ADDRESS: STREET 1: UNIT 1915-1916, 19/F, DELTA HOUSE STREET 2: 3 ON YIU STREET, SHEK MUN CITY: SHATIN STATE: K3 ZIP: 000000 CORRESP 1 filename1.htm bonso572010corresp.htm
 
 
BONSO ELECTRONICS INTERNATIONAL INC.


May 7, 2010

Via Facsimile, EDGAR and Mail

Mr. Praveen Kartholy
Staff Accountant
Division of Corporation Finance
United States Securities and Exchange Commission
100 F Street, N.E.
Washington, D.C. 20549

Re:  Bonso Electronics International Inc.

Dear Mr. Kartholy:

This letter is in response to your letter dated February 18, 2010 (“Letter”) and the conference call on April 1, 2010, which relates to the Form 20-F for the fiscal year ended March 31, 2009, filed on September 30, 2009 with the United States Securities and Exchange Commission (“SEC”).

Form 20-F for the fiscal year ended March 31, 2009

Item 18. Financial Statements

Consolidated Statement of Operations and Comprehensive Income, page F-4

Nature of the inter-company loans to Gram and Korona

On November 1, 2008, the company disposed of its entire interest in Gram Precision Scales Inc. (“Gram”).  On March 31, 2009, the company’s German subsidiary, Korona Haushaltwaren GmbH and Co. KG (“Korona”), sold its major assets (accounts receivable, inventories, and intellectual property rights) to a third party company, and immediately after the sale of the major assets, the company began the process of liquidating Korona.  Due to losses from operations of the subsidiaries, Gram and Korona, for the past years, the company decided to dispose of or dissolve them.  At the time of the disposal of Gram, it owed another subsidiary of the company (a manufacturer in Hong Kong within the continuing operations) $5,390,590.  On March 31, 2009, Korona owed to the same subsidiary $2,180,779.  In the past, Gram and Korona were trading companies, and they purchased goods from the manufacturer.  However, since Gram and Korona were loss making in recent years, they were not able to pay back the manufacturer.  The amounts due from the Gram and Korona (discontinued operations) to the manufacturer (continuing operations) were effectively inter-company loans to Gram and Korona for funding of their daily operations.

When the company disposed of Gram and sold the major assets of Korona as the first step to dissolve Korona, the company understood that the loans to Gram and Korona would not be recoverable.  As a result, the irrecoverable debts became a loss to the continuing operations.  The amount of the loan to Gram and waived by the manufacturer was $3,690,590 and Gram has to pay back the manufacturer the remaining $1,700,000 as stated in note 12 to the consolidated financial statements.  The amount of the loan to Korona and waived by the manufacturer was $2,180,779.
 
 
Page 1 of 4
 
Unit 15-16 19/F Delta House, 3 On Yin Street, Shek Mun, Shatin, New Territories, Hong Kong
TEL: (852)2605 5822  Fax:  (852)291 1724   E-mail: info@bonso.com
 
BONSO ELECTRONICS INTERNATIONAL INC.

 
Presentation of the waivers of loans and the gain from disposal of a subsidiary in the consolidated statement of operations for the fiscal year ended March 31, 2009

We believe that, in order to reflect that both Gram and Korona had benefited from the company’s decision of waiving their debts, gains arising from the loan waivers be reflected in discontinued operations and the loss to the company be included in continuing operations in the consolidated statement of operations in the Form 20-F for the fiscal year ended March 31, 2009, filed on September 30, 2009.  In addition, for the benefit of the readers to realize the results of the discontinued operations, the gain from disposal of Gram was not included in discontinued operations, in the consolidated statement of operations in the Form 20-F for the fiscal year ended March 31, 2009, filed on September 30, 2009.

However, in view of your comments, we are prepared to present a revised consolidated statement of operations without showing these waivers of loans, and the gain from disposal of Gram included in the loss from discontinued operations in the March 31, 2010 Form 20-F filing, as follows:-

 
Consolidated Statement of Operations and Comprehensive Income
  
 
(Expressed in United States Dollars)
  
         
     
Year ended March 31,
  
   
Note
2009
after changes
  
     
$
  
         
 
Net sales
19
40,378,198
  
 
Cost of sales
  
-34,707,293
  
     
 
  
 
Gross profit
  
5,670,905
  
         
 
Selling expenses
  
-649,377
  
 
Salaries and related costs
  
-3,776,841
  
 
Research and development expenses
  
-792,071
  
 
Administration and general expenses
  
-4,601,879
  
     
 
  
 
Loss from operations
19
-4,149,263
  
 
Interest income
  
126,544
  
 
Interest expenses
  
-209,268
  
 
Foreign exchange loss
  
-278,944
  
 
Gain on disposal of property
  
162,681
  
 
Other income
  
706,541
  
     
 
  
 
Loss before income taxes
  
-3,641,709
  
         
 
Page 2 of 4
 
Unit 15-16 19/F Delta House, 3 On Yin Street, Shek Mun, Shatin, New Territories, Hong Kong
TEL: (852)2605 5822  Fax:  (852)291 1724   E-mail: info@bonso.com
 
BONSO ELECTRONICS INTERNATIONAL INC.
 
         
 
Income tax expense
9
-208,003
  
     
 
  
 
Loss from continuing operations
  
-3,849,712
  
 
Loss from discontinued operations, (including gain from disposal of $363,411),
net of tax
12
-3,734,702
  
     
 
  
 
Net loss
  
-7,584,414
  
         
 
Other comprehensive income, net of tax:
      
 
Foreign currency translation adjustments, net of tax
  
811,368
  
     
 
  
 
Comprehensive loss
  
-6,773,046
  
     
 
  
         
 
Earnings (loss) per share
      
         
 
Weighted average number of shares
18
5,577,639
  
         
 
Basic and diluted
      
 
- Continuing operations
  
-0.69
  
 
- Discontinued operations
  
-0.67
  
     
 
  
     
-1.36
  
     
 
  

And the Note 12 on Discontinued Operations will become as follows.

 
Discontinued Operations (Korona and Gram)
  
     
Year ended March 31,
  
     
2009
after changes
  
     
$
  
         
 
Sales
  
10,722,372
  
 
Cost of Sales
  
-11,218,722
  
     
 
  
 
Gross Profit / (loss)
  
-496,350
  
         
 
Selling expenses
  
-1,148,101
  
 
Salaries and related costs
  
-1,480,815
  
 
Administrative expenses
  
-1,488,942
  
     
 
  
 
Operating loss
  
-4,614,208
  
 
Interest income
  
53,039
  
 
Other income
  
668,308
  
 
Interest expenses
  
-241,111
  
 
Foreign exchange gain
  
44,719
  
 
Income tax expenses
  
-8,860
  
 
Gain from disposal of a subsidiary - Gram
  
363,411
  
     
 
  
 
Net loss
  
-3,734,702
  
     
 
  
 
 
 
 Page 3 of 4
 
Unit 15-16 19/F Delta House, 3 On Yin Street, Shek Mun, Shatin, New Territories, Hong Kong
TEL: (852)2605 5822  Fax:  (852)291 1724   E-mail: info@bonso.com
BONSO ELECTRONICS INTERNATIONAL INC.
 
 
The detail changes in the above revised version can be found from the appendix to this letter.  As the net loss and comprehensive loss for the year ended March 31, 2009 do not change from the original presentation, we propose the above revised consolidated statement of operations and comprehensive income be adopted and included in the March 31, 2010 Form 20-F filing.

If you have any questions or wish to discuss anything further, please do not hesitate to contact the undersigned.
   
  Sincerely,
   
   /s/  Albert So
 
Albert So
 
Chief Financial Officer and Secretary

 
 
Page 4 of 4
 
Unit 15-16 19/F Delta House, 3 On Yin Street, Shek Mun, Shatin, New Territories, Hong Kong
TEL: (852)2605 5822  Fax:  (852)291 1724   E-mail: info@bonso.com
BONSO ELECTRONICS INTERNATIONAL INC.
 

 
Bonso Electronics International Inc.
                                
Appendix to letter to SEC on 2010-05-07
                          
                                     
Consolidated Statement of Operations and Comprehensive Income
        
(Expressed in United States Dollars)
                                
                                     
This appendix shows the changes made on the revised presentation from the original presentation.
  
The net loss and comprehensive loss for the year ended March 31, 2009 in the revised presentation do not
  
change from the original presentation.
                          
                                     
         
presentation as in
Form 20-F filed
        
 
    
 
  
          on September 30,            revised     changes        
          2009           presentation     made     Remark  
                                     
          Year ended           Year ended              
          March 31,           March 31,              
                      2009 after              
     Note     2009           changes              
                                     
                                         
         $              $                  
Net sales
     19       40,378,198               40,378,198                
Cost of sales
             -34,707,293               -34,707,293                
           
 
            
 
              
Gross profit
             5,670,905               5,670,905                
                                               
Selling expenses
             -649,377               -649,377                
Salaries and related costs
             -3,776,841               -3,776,841                
Research and development expenses
       -792,071               -792,071                
Administration and general expenses
       -4,601,879               -4,601,879                
           
 
            
 
              
Loss from operations
     19       -4,149,263               -4,149,263                
Gain from disposal of a subsidiary
       363,411               0       -363,411    
(a)
  
Interest income
             126,544               126,544                  
Interest expenses
             -209,268               -209,268                  
Foreign exchange loss
             -278,944               -278,944                  
Gain on disposal of property
             162,681               162,681                  
Other income (expenses)
             706,541               706,541                  
Waiver of loan to subsidiaries
             -3,690,590               0       3,690,590    
(b)
  
Waiver of loan to subsidiaries held for sale
       -2,180,779               0       2,180,779    
(c)
  
           
 
            
 
                
Loss before income taxes
             -9,149,667               -3,641,709                  
Income tax expense
     9       -208,003               -208,003                  
           
 
            
 
                
Loss from continuing operations
             -9,357,670               -3,849,712                  
Loss from discontinued operations, (including gain from disposal of $363,411), net of tax
     12       1,773,256               -3,734,702                  
           
 
            
 
                
Net loss
             -7,584,414               -7,584,414                  
                                                 
Other comprehensive income, net of tax:
                                  
Foreign currency translation adjustments, net of tax
       811,368               811,368                  
           
 
            
 
                
Comprehensive loss
             -6,773,046               -6,773,046                  
           
 
            
 
                
                                                 
Earnings (loss) per share
                                                

Page 1 of 2
 
Unit 15-16 19/F Delta House, 3 On Yin Street, Shek Mun, Shatin, New Territories, Hong Kong
TEL: (852)2605 5822  Fax:  (852)291 1724   E-mail: info@bonso.com
 
BONSO ELECTRONICS INTERNATIONAL INC.
                                     
                                     
                                     
Weighted average number of shares
     18       5,577,639             5,577,639              
                                           
Basic and diluted
                                          
- Continuing operations
             -1.68             -0.69              
- Discontinued operations
             0.32             -0.67              
           
───────
          
───────
            
              -1.36             -1.36              
                                           
                                           
                                           
Note 12
                                          
Discontinued Operations (Korona and Gram)
                            
                                           
            Year ended           Year ended              
            March 31,           March 31,              
                          2009 after     changes        
              2009           changes     made     Remark  
                                           
                    $                     $    
                                               
Sales
             10,722,372               10,722,372                
Cost of Sales
             -11,218,722               -11,218,722                
           
 
            
 
              
Gross profit / (loss)
             -496,350               -496,350                
                                               
Selling expenses
             -1,148,101               -1,148,101                
Salaries and related costs
             -1,480,815               -1,480,815                
Administrative expenses
             -1,488,942               -1,488,942                
           
 
            
 
              
Operating loss
             -4,614,208               -4,614,208                
Interest income
             53,039               53,039                
Other income
             2,849,087               668,308       -2,180,779    
(c)
  
Interest expenses
             -241,111               -241,111                  
Foreign exchange gain
             44,719               44,719                  
Loan forgiveness from continuing operations
       3,690,590               0       -3,690,590    
(b)
  
Income tax expenses
             -8,860               -8,860                  
Gain from disposal of a subsidiary - Gram
       0               363,411       363,411    
(a)
  
           
 
            
 
                
Net loss
             1,773,256               -3,734,702                  
           
 
            
 
                
                                                 
                                      0          
 
(total changes in continuing operations and discontinued operations)
                                                 
Remark:
                                                
(a) To include the gain from disposal of a subsidiary in the discontinued operations
  
according to ASC 205-20-45-3.
                                          
(b) To remove the loss on waiver of loan to Gram in continuing operations, and gain from loan forgivenss
  
      in discontinued operations.
                                                
(c) To remove the loss on waiver of loan to Korona in continuing operations, and gain from loan forgivenss
  
      in discontinued operations.
                                                
                                                 
                                                 


 
Page 2 of 2
 
Unit 15-16 19/F Delta House, 3 On Yin Street, Shek Mun, Shatin, New Territories, Hong Kong
TEL: (852)2605 5822  Fax:  (852)291 1724   E-mail: info@bonso.com
 

-----END PRIVACY-ENHANCED MESSAGE-----