Financial instruments at fair value

12 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Financial instruments at fair value

9 Financial instruments at fair value

The Company complies with ASC 820, “Fair Value Measurements” (“ASC 820”). ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:

Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.

Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data.

Level 3-Inputs are unobservable inputs which reflect the reporting entity's own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information.

The Company entered into a forward contract with a bank on March 10, 2015 with the purpose of obtaining a gain while the Company expected the trend of Chinese Yuan appreciation against the USD would continue for the next twenty four months. The bank was obligated to pay the Company if the Chinese Yuan appreciated against the USD, and the Company had to pay the bank if the Chinese Yuan depreciated against the USD, although this depreciation allowed the Company to purchase more Chinese Yuan. During the fiscal year ended March 31, 2017, the forward contract matured and payments of approximately $225,000 have been made.

During the fiscal year ended March 31, 2019, the Company purchased listed shares in Hong Kong for trading purposes for approximately $226,000 (2018: $517,000). During the fiscal year ended March 31, 2019, a gain from disposal of financial assets at fair value of approximately $16,000 was recorded (2018: $58,000). A revaluation gain of approximately $4,000 was recorded during the fiscal year ended March 31, 2019 (2018: revaluation loss of $7,000).

At the end of the accounting period, the fair value of the following assets were as follows:

	March 31, 2018								March 31, 2019
$ in thousands
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Equity investments		78		—		—		78		102		—		—		102

The fair value of equity investments is determined based on quoted price in active markets.