DERIVATIVE INSTRUMENTS AND FOREIGN CURRENCY EXPOSURE

12 Months Ended

Jan. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

14. Derivative Instruments and Foreign Currency Exposure

The Company is exposed to foreign currency risk. Management has commenced a derivative instrument program to partially offset this risk by purchasing forward contracts to sell the Canadian Dollar, the Chilean Peso, the Euro, the Great Britain Pound and Brazil Real other than the cash flow hedge discussed below. Such contracts are largely timed to expire with the last day of the fiscal quarter, with a new contract purchased on the first day of the following quarter, to match the operating cycle of the Company. We designated the forward contracts as derivatives but not as hedging instruments, with loss and gain recognized in current earnings. In the year ended January 31, 2013, the Company recorded a loss on foreign exchange in Brazil of $741,052 or $0.14 per share included in income from continuing operations. In the year ended January 31, 2012, the Company sustained a loss on foreign exchange in Brazil of $304,626 or $0.05 per share included in income from continuing operations.

The Company accounts for its foreign exchange derivative instruments by recognizing all derivatives as either assets or liabilities at fair value, which may result in additional volatility in both current period earnings and other comprehensive income as a result of recording recognized and unrecognized gains and losses from changes in the fair value of derivative instruments.

Currently, we have two types of derivatives to manage the risk of foreign currency fluctuations. We enter into forward contracts with financial institutions to manage our currency exposure related to net assets and liabilities denominated in foreign currencies. Those forward contract derivatives, not designated as hedging instruments, are generally settled quarterly. Gain and loss on those forward contracts are included in current earnings. We also enter cash flow hedge contracts with financial institutions to manage our currency exposure on future cash payments denominated in foreign currencies. The effective portion of gain or loss on cash flow hedge is reported as a component of accumulated other comprehensive income. Our hedge positions are summarized below:

Derivatives not designated as hedging instruments

Foreign Exchange Forward Contracts

	Three Months Ended				Years Ended
	January 31,				January 31,
	2013		2012		2013		2012
Notional Value in USD	$	5,526,710	$	2,779,785	$	42,027,715	$	12,730,191
Loss reported in current    operating expenses	$	(171,956)	$	(99,183)	$	(432,989)	$	(230,110)

Derivatives designated as hedging instruments

		As of January 31, 2013	As of January 31, 2012
Notional value in USD	$	6,944,040	$	6,904,150
Gain and loss reported in equity as accumulated Other Comprehensive Income	$	38,513	$	123,313
Effect of derivative on Income Statement from Foreign currency cash flow hedge
Gain (loss) reclassed from Other Comprehensive Income into current earning during:

	Three Months Ended				Years Ended
	January 31,				January 31,
	2013		2012		2013		2012
Reported in operating income (loss)	$	(8,618)	$	75,882	$	24,374	$	106,125