-----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, MCqBjGyqkkOPB78AqZ4bPadNuc3Ko3lH3wtE6UHHtlzRyODmOpNEfFyHtDaWx/+R Gh/ZeshyrC0Bk2ct7WJhPA== 0000000000-06-010100.txt : 20061003 0000000000-06-010100.hdr.sgml : 20061003 20060228111948 ACCESSION NUMBER: 0000000000-06-010100 CONFORMED SUBMISSION TYPE: UPLOAD PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20060228 FILED FOR: COMPANY DATA: COMPANY CONFORMED NAME: DESWELL INDUSTRIES INC CENTRAL INDEX KEY: 0000946936 STANDARD INDUSTRIAL CLASSIFICATION: PLASTICS PRODUCTS, NEC [3089] IRS NUMBER: 000000000 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: UPLOAD BUSINESS ADDRESS: STREET 1: UNIT 516-517 HONG LEONG INDUSTRIAL STREET 2: COMPLEX #4 WANG KWONG RD CITY: KOWLOON BAY KOWLOON STATE: K3 BUSINESS PHONE: 2127320030 MAIL ADDRESS: STREET 1: UNIT 516-517 HONG LEONG INDUSTRIAL STREET 2: COMPLEX #4 WANG KWONG ROAD CITY: KOWLOON BAY KOWLOON STATE: K3 ZIP: 00000 PUBLIC REFERENCE ACCESSION NUMBER: 0000950129-05-006944 LETTER 1 filename1.txt February 28, 2006 via U.S. mail and facsimile to 011 (853) 323265 C.P. Li Chief Financial Officer Deswell Industries, Inc. 17B, Edificio Comercial Rodrigues 599 Avenida da Praia Grande Macao RE: Deswell Industries, Inc. Form 20-F for the fiscal year ended March 31, 2005 Filed July 8, 2005 File No. 0-26448 Dear Mr. Li: We have reviewed your response letter dated February 20, 2006 and have the following additional comments. If you disagree, we will consider your explanation as to why our comment is inapplicable. In some of our comments, we may ask you to provide us with supplemental information so we may better understand your disclosure. After reviewing this information, we may or may not raise additional comments. Form 20-F for the fiscal year ended March 31, 2005 Financial Statements 8. Income Taxes, page 66 1. We note your response to prior comment 5 in our letter dated January 30, 2006 and have the following comments: * For each subsidiary subject to a tax holiday or other concession, as detailed on page 66, please tell us and disclose, in future filings, when each of your tax holidays and other concessions expire. Please also tell us and disclose the applicable tax rate after the expiration of the tax holiday or other concession. * We note your conclusion that you have no deferred tax assets or liabilities as a result of operations in tax-free jurisdictions and various tax holidays and concessions. Please tell us the amount and nature of each type of temporary taxable or deductible difference associated with your subsidiaries subject to tax holidays and concessions. Please also tell us, in detail, your basis for what appears to be a determination that all temporary differences associated with these subsidiaries will reverse prior to the end of the tax holiday. For example, we note that you depreciate your fixed assets for book purposes between three and 50 years. However, your disclosures on page 66 indicate that you only receive a 100% exemption from taxes for two years, followed by a 50% exemption for three years. Thus, it would appear that certain temporary differences will reverse after the expiration of your tax holidays, thereby requiring recognition of a deferred tax asset or liability. 2. We note your response to prior comment 6 in our letter dated January 30, 2006. We assume that the entities referred to in your response that are not subject to any tax jurisdictions are the same as those disclosed under "Others" on page 67 of your Form 20-F. In future filings, given the increasing impact of the income earned by entities in tax free jurisdictions, expand your disclosures to discuss the nature of the aforementioned entities and jurisdictions, and the amounts associated with each for each period presented. * * * * As appropriate, please respond to these comments within 10 business days or tell us when you will provide us with a response. Please furnish a letter that keys your responses to our comments and provides any requested supplemental information. Detailed response letters greatly facilitate our review. Please file your response letter on EDGAR. Please understand that we may have additional comments after reviewing your responses to our comments. You may contact Jenn Do at (202) 551-3743, or me at (202) 551- 3255 if you have questions regarding these comments. Sincerely, Nili Shah Branch Chief ?? ?? ?? ?? Mr. C.P. Li Deswell Industries, Inc. February 28, 2006 Page 2 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549-7010 DIVISION OF CORPORATION FINANCE -----END PRIVACY-ENHANCED MESSAGE-----