Income Taxes (Tables)

12 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Abstract]

Summary of Income Tax Expense

Income tax expense (benefit) consists of:

	2013			2012			2011
	US$			US$			US$
Continuing Operations
Income tax expense (benefit):
Current		(820,039	)		1,229,229			110,215
Deferred		(21,861	)		(604	)		93,907
Income tax expense (benefit) from continuing operations		(841,900	)		1,228,625			204,122
	2013			2012			2011
	US$			US$			US$
Discontinued Operations
Income tax expense:
Current		—			25,263			—
Income tax expense from discontinued operations		—			25,263			—
Total income tax expense (benefit)		(841,900	)		1,253,888			204,122

Schedule of Reconciliation of Income Tax Expense (Benefit)

The reconciliation of income tax expense (benefit) computed at the Hong Kong statutory income tax rate to the total income (loss) from continuing operations and discontinued operations before income taxes at the effective income tax rate is as follows:

	2013			2012			2011
	US$			US$			US$
Income tax expenses (benefit) at the Hong Kong statutory income tax rate		(480,671	)		440,752			(657,339	)
Foreign rate differential		30,822			200,857			(69,068	)
Non-taxable other income		(386,664	)		(294,827	)		(79,153	)
Non-tax deductible expenses		670,389			1,124,153			554,562
Under (over) provision of tax in prior periods		(1,314,491	)		206,387			149,531
Unrecognized (utilized) tax benefits		223,959			569,997			(1,110,579	)
Changes in valuation allowance		414,756			(993,431	)		1,416,168
Total income tax expense (benefit) at the Company’s effective income tax rate		(841,900	)		1,253,888			204,122
Hong Kong statutory income tax rate		16.5	%		16.5	%		16.5	%
Effective income tax rate		28.9	%		46.9	%		(5.0	%)

Summary of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities as of March 31, 2013 and 2012 comprise the following:

	March 31, 2013			March 31, 2012
	US$			US$
Deferred tax assets:
Impairment of property, plant and equipment		2,031,131			2,097,590
Provision for inventories		196,834			126,016
Provision for warranty		111,903			191,653
Operating losses carried forward		3,418,116			2,770,145
Gross deferred tax assets		5,757,984			5,185,404
Less: Valuation allowance for deferred tax assets		(5,757,984	)		(5,185,404	)
Net deferred tax assets		—			—
Deferred tax liabilities:
Other temporary differences		—			—
Tax over book depreciation of property, plant and equipment		(5,180	)		(27,017	)
Total deferred tax liabilities		(5,180	)		(27,017	)

Summary of Valuation Allowance

	Fiscal years ended
	March 31, 2013		March 31, 2012			March 31, 2011
	US$		US$			US$
Valuation allowance:
Balance at beginning of fiscal year		5,185,404		6,057,516			4,553,687
Additions (reversals)		414,756		(993,431	)		1,416,168
Exchange realignment		157,824		121,319			87,661
Balance at end of fiscal year		5,757,984		5,185,404			6,057,516

Schedule of Reconciliation of Movements of Unrecognized Tax Benefits Exclusive of Related Interest and Penalties

A reconciliation of the movements of unrecognized tax benefits under FASB ASC 740 during the fiscal years ended March 31, 2013 and 2012, exclusive of related interest and penalties, is as follows:

	Fiscal years ended
	March 31, 2013			March 31, 2012
	US$			US$
Balance at beginning of fiscal year		9,117,443			7,437,277
Additions based on tax positions related to the current year		799,637			1,946,753
Reduction for tax positions related to prior year		(1,070,199	)		(415,227	)
Exchange realignment		23,796			148,640
Balance at end of fiscal year		8,870,677			9,117,443