COMMITMENTS AND CONTINGENCIES	9 Months Ended
Dec. 31, 2019
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	19. COMMITMENTS AND CONTINGENCIES Purchase Commitments From January 1, 2020 through the date of issuance of these financial statements, the Company entered into two contracts with two automobile dealers for the purchase of a total of 21 automobiles for an aggregate purchase price of approximately $348,000. These purchase transactions are expected to be completed by the end of 2020. Contingencies In measuring the credit risk of guarantee services to automobile purchasers, the Company primarily reflects the “probability of default” by the automobile purchasers on its contractual obligations and considers the current financial position of the automobile purchasers and its likely future development. The Company manages the credit risk of automobile purchasers by performing preliminary credit checks of each automobile purchaser and ongoing monitoring every month. By using the current credit loss model, management is of the opinion that the Company is bearing the credit risk to repay the principal and interests to the financial institutions if automobile purchasers default on their payments for more than three months. Management also periodically re-evaluates probability of default of automobile purchasers to make adjustments in the allowance when necessary. However, as the Company commenced the automobile transaction and related services for less than one year, there was no sufficient historic default data and other information to make an estimate on the expected credit losses. Historically, most of the automobile purchasers would pay the Company their previous defaulted amounts within one to three months. Therefore, for the nine months ended December 31, 2019, the Company did not provide provisions for the guarantee services. As of December 31, 2019, the maximum contingent liabilities the Company exposed to would be approximately $18,901,000 if all the automobile purchasers defaulted, among which approximately $553,000 would be due to Sichuan Senmiao after the assumption of all the loans in accordance with the Plan. Automobiles are used as collateral to secure the payment obligations of the automobile purchasers under the financing agreements. The Company estimated the fair market value of the collateral to be approximately $15,540,000 as of December 31, 2019, based on the market price and the useful life of such collateral, which represents about 82.2% of the contingent liabilities.

19. COMMITMENTS AND CONTINGENCIES

Purchase Commitments

From January 1, 2020 through the date of issuance of these financial statements, the Company entered into two contracts with two automobile dealers for the purchase of a total of 21 automobiles for an aggregate purchase price of approximately $348,000. These purchase transactions are expected to be completed by the end of 2020.

Contingencies

In measuring the credit risk of guarantee services to automobile purchasers, the Company primarily reflects the “probability of default” by the automobile purchasers on its contractual obligations and considers the current financial position of the automobile purchasers and its likely future development.

The Company manages the credit risk of automobile purchasers by performing preliminary credit checks of each automobile purchaser and ongoing monitoring every month. By using the current credit loss model, management is of the opinion that the Company is bearing the credit risk to repay the principal and interests to the financial institutions if automobile purchasers default on their payments for more than three months. Management also periodically re-evaluates probability of default of automobile purchasers to make adjustments in the allowance when necessary.

However, as the Company commenced the automobile transaction and related services for less than one year, there was no sufficient historic default data and other information to make an estimate on the expected credit losses. Historically, most of the automobile purchasers would pay the Company their previous defaulted amounts within one to three months. Therefore, for the nine months ended December 31, 2019, the Company did not provide provisions for the guarantee services. As of December 31, 2019, the maximum contingent liabilities the Company exposed to would be approximately $18,901,000 if all the automobile purchasers defaulted, among which approximately $553,000 would be due to Sichuan Senmiao after the assumption of all the loans in accordance with the Plan. Automobiles are used as collateral to secure the payment obligations of the automobile purchasers under the financing agreements. The Company estimated the fair market value of the collateral to be approximately $15,540,000 as of December 31, 2019, based on the market price and the useful life of such collateral, which represents about 82.2% of the contingent liabilities.