Concentrations and credit risk

12 Months Ended

Mar. 31, 2014

Notes to Financial Statements

Concentrations and credit risk

16 Concentrations and credit risk

The Group operates principally in the PRC (including Hong Kong) and grants credit to its customers in this geographic region.  Although the PRC is economically stable, it is always possible that unanticipated events in foreign countries could disrupt the Group's operations.

Financial instruments that potentially subject the Group to a concentration of credit risk consist of cash and trade  receivables.

At March 31, 2013 and 2014, the Company had credit risk exposure of uninsured cash and deposits maturing over three months and less than one year in banks of approximately $2,154,000 and $1,165,000, respectively.

A substantial portion, 66%, 52% and 45% of revenue, was generated from one customer for the years ended March 31, 2012, 2013 and 2014, respectively.

The net sales to customers representing at least 10% of net total sales are as follows:

	Year Ended March 31,
	2012				2013				2014
	$ in thousands		%		$ in thousands		%		$ in thousands		%
Customer A		17,499		66		15,818		52		14,080		45
Customer B		106		1		5,493		18		10,396		33
Customer C		3,744		14		3,814		13		2,762		9
		21,349		81		25,125		83		27,238		87

The following customers had balances greater than 10% of the total trade receivables at the respective balance sheet dates set forth below:

	March 31,
	2013				2014
	$ in thousands		%		$ in thousands		%
Customer A		1,152		42		1,523		61
Customer B		884		32		355		14
Customer D		347		13		219		9
				87				84

At March 31, 2013 and 2014, these customers accounted for 87% and 84%, respectively, of net trade receivables.  The trade receivables have repayment terms of not more than twelve months.  Trade receivables for two customers accounted for 75% of total trade receivables as of March 31, 2014 (2013: 74%), and they were covered by credit insurance under a factoring agreement with a bank.  The Group does not require collateral to support financial instruments that are subject to credit risk.