DEBT

6 Months Ended

Jul. 31, 2011

Notes to Financial Statements [Abstract]

NOTE 8 - DEBT

The Company and its subsidiaries have domestic and foreign uncommitted, unsecured lines of credit totaling $4,431,910 which can be used for working capital. Of the total lines of credit available, the foreign unsecured line of credit totals $431,910, or 300,000 Euro. As of July 31, 2011 and January 31, 2011, the Company had zero outstanding borrowings from its domestic line of credit. The Company's foreign line of credit had outstanding borrowings of $293,971, or 204,189 Euro, and zero as of July 31, 2011 and January 31, 2011, respectively.

Short-term and long-term debt consisted of the following:

	July 31,	January 31,
	2011		2011

Bond payable, bank, payable in quarterly installments of
$58,460, plus interest at a rate equal to the greater of
(i) 16 basis points below the ninety day LIBOR rate
or (ii) 250 basis points (effective interest rate of 2.50%
at July 31, 2011), maturing April, 2021, collateralized
by the Telford, PA building	$2,279,958		$2,396,878

Note payable, bank, payable in quarterly installments of
$35,993, or 25,000 Euro, plus interest at a fixed rate of 3.82%,
maturing January, 2016	647,865		684,600

Equipment note, payable in monthly installments of
$13,482, no interest, maturing March 2012	107,852		188,742

Line of credit, $293,971, or 204,189 Euro, payable upon
demand, plus interest at a rate of 70 basis points over
the thirty day EURIBOR rate (effective interest rate of
2.13% at July 31, 2011)	293,971		-

	3,329,646		3,270,220
Less current portion	779,635		532,540
	2,550,011		2,737,680
Fair market value of interest rate swap liability	318,328		274,308
Long-term portion	$2,868,339		$3,011,988

One of the notes payable and the bond payable are subject to certain covenants, including maintenance of prescribed amounts of leverage and fixed charge coverage ratios. As of July 31, 2011, the Company was in compliance with all applicable covenants.

The Company has an interest rate swap agreement to hedge against the potential impact on earnings from increases in market interest rates. Effective April 3, 2006, the Company entered into a fifteen-year interest rate swap agreement for a notional amount equal to the balance on the bond payable maturing April 2021. The Company swapped the ninety-day LIBOR for a fixed rate of 4.87%. As of July 31, 2011, the effective fixed interest rate was 7.07% as a result of the swap agreement plus the interest rate floor provision of 250 basis points. The interest rate swap agreement is accounted for as a fair value hedge that qualifies for treatment under the short-cut method of measuring effectiveness in accordance with FASB ASC Topic 815, "Derivatives and Hedging". There was no hedge ineffectiveness as of July 31, 2011. The fair value of the interest rate swap agreement resulted in a decrease in equity of $200,547 (net of tax) as of July 31, 2011 and a decrease in equity of $172,814 (net of tax) as of January 31, 2011. The change in the fair value of the interest rate swap agreement resulted in a $27,733 (net of tax) equity decrease from the fiscal year ended January 31, 2011. These results are recorded in the accumulated other comprehensive loss section of shareholders' equity.

The bank has issued and has outstanding standby letters of credit to customers totaling $1,468,229 as of July 31, 2011, which have expiration dates during the fiscal years ending January 31, 2012 and 2013 in the amounts of $185,261 and $1,282,968, respectively.

Maturities of short-term and long-term debt are as follows:

As of
July 31,
2012	$779,635
2013	377,812
2014	377,812
2015	377,812
2016	305,817
Thereafter	1,110,758
	$3,329,646