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Leases

12 Months Ended

Mar. 31, 2016

Leases [Abstract]

11

Leases

(a)

Capital leases

During the year ended March 31, 2014, the Company entered into capital lease obligations amounting of approximately $123,000 for two motor vehicles. During the year ended March 31, 2015, the Company did not enter into additional capital lease obligations. During the year ended March 31, 2016, the Company entered into additional capital lease obligations amounting to approximately $116,000 for one motor vehicle.

Future minimum payments under capital leases as of March 31, 2016 with an initial term of more than one year are as follows:

Future minimum payments under capital leases for the years ended March 31,		Principal repayment				Interest payment				Total obligations
		$ in thousands				$ in thousands				$ in thousands

2017			49				5				54
2018\			44				4				48
2019			28				2				30
2020			27				1				28
2021			5				0				5

			153				12				165

(b)

Operating leases

As of March 31, 2016, the Company leases a factory in Shenzhen, two commercial units in Beijing and part of production facilities in Xinxing under rental agreements to third parties. The Company will need to pay a cancellation fee of approximately $71,000 if the Company decides to terminate all the rental agreements before their expiry.

The Shenzhen factory was rented out to a third party from August 1, 2013 to August 1, 2019. Part of the production facilities in Xinxing were rented to various third parties up to December 31, 2020. The expected future rental payments to be received are as follows:


Year ending March 31,		$ in thousands

2017			1,318
2018			1,312
2019			1,312
2020			437

			4,379

As of March 31, 2016, the future minimum lease commitment payables in respect of non-cancellable operating leases for two offices in Shenzhen, a staff quarter in Shenzhen and a staff quarter in Xinxing are as follows:


Year ending March 31,		$ in thousands


2017			117
2018			100
2019			18

			235

Rental expenses for all operating leases of two office premises in Shenzhen, a staff quarter in Shenzhen and a staff quarter in Xinxing amounted to approximately $51,000, $100,000 and $119,000 for the fiscal years ended March 31, 2014, 2015 and 2016, respectively.

Tabular disclosure of a lessee's leasing arrangements including: (1) the basis on which contingent rental payments are determined, (2) the existence and terms of renewal or purchase options and escalation clauses, (3) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included.

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