Banking facilities

12 Months Ended

Mar. 31, 2017

Banking and Thrift [Abstract]

Banking facilities

7 Banking facilities

As of March 31, 2017, the Company had general banking facilities for bank overdrafts, letters of credit, notes payable and term loans.  The facilities are interchangeable with total amounts available of $5,306,000 (2016: $6,189,000).  The general banking facilities utilized by the Company are denominated in United States dollars, Hong Kong dollars and Chinese Yuan.

The Company’s general banking facilities, expressed in United States dollars, are further detailed as follows:

	Amount available				Amount utilized				Amount unutilized				Terms of banking facilities as of
	March 31,				March 31,				March 31,				March 31, 2017
	2016		2017		2016		2017		2016		2017		Interest	Repayment
	$ in thousands				$ in thousands				$ in thousands				rate	terms
Import and export  facilities
Combined limit		2,564		2,564		1,237		134		1,327		2,430
Including sub-limit of:
Notes payable		2,308		2,308		1,237		134		1,071		2,174	HIBOR* +2.5%	Repayable in full within 120 days
Bank overdrafts		641		641		-		-		641		641	Prime rate + 1%	Repayable on demand
Factoring		2,400		-		-		-		2,400		-	HIBOR* +1.5%	Repayable in 60 days
Other facilities
Export Documentary Credits		641		641		-		-		641		641
Short Term Loans		1,923		1,923		-		-		1,923		1,923	(Note A)	Revolving loan repayable in 30 days
Long Term Loans (1)		1,061		178		506		143		555		35	(Note A)	Term loans repayable monthly over 3 years.
		6,189		5,306		1,743		277		4,446		5,029

Note A: HIBOR* +2.25% for loans in Hong Kong. People's Bank of China’s loan benchmark interest rate times 110% for loans in PRC.

(1) A clause in the banking facilities states that the term loans are subject to review any time and also subject to the bank's overriding right of repayment on demand, including the right to call for cash cover on demand for prospective and contingent liabilities.  Therefore, all long-term loans were classified as current liabilities in the consolidated balance sheets.  As of March 31, 2017, the long-term loans became current as it is repayable within one year in accordance with the repayment schedule.

* HIBOR is the Hong Kong Interbank Offer Rate

As of March 31, 2016, a treasury product facility of approximately $25,738,000 was made available to the Company for transactions of financial instruments including forward contracts, and approximately $1,000,000 of the facility was utilized.  There was no such treasury product facility available as of March 31, 2017.

One of the properties of the Company located in Hong Kong with a net book value of approximately $965,000, the rental assignment over such property, and the rights, interests and benefits of a life insurance contract with a book value of approximately $144,000 are arranged as securities to the banks for the banking facilities arrangement.

The Prime Rate, HIBOR and Peoples' Bank of China loan benchmark interest rate were 5.00%, 1.11% and 4.75% per annum, respectively, as of March 31, 2017.  The Prime Rate is determined by the Hong Kong Bankers Association and is subject to revision from time to time.  Interest rates are subject to change if the Company defaults on the amount due under the facility or draws in excess of the facility amounts, or at the discretion of the banks.

The weighted average interest rates of borrowings of the Company are as follows:

	During the fiscal year ended March 31,
	2016			2017
Bank overdrafts		6.00	%		6.00	%
Notes payable		2.94	%		3.13	%
Term Loan in Hong Kong		2.50	%		2.59	%
Term Loan in PRC		6.77	%	unutilized
Factoring		1.74	%	unutilized