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Legal Proceedings
12 Months Ended
Mar. 31, 2013
Legal Proceedings  
Legal Proceedings

6.  Legal Proceedings

 

We are involved in two legal proceeding that arose in the normal course of business. One legal proceeding relates to a product that we manufacturer. The other legal proceeding relates to a product of another manufacturer that was not distributed by nor associated in any way with us, but we were included as one of the defendants in the proceeding. These matters are product liability actions. We do not know whether we will prevail in these matters nor can we assure that any remedy could be reached on commercially viable terms, if at all. Based on currently available information, we believe that we have meritorious defense to these actions and that the resolution of these cases is not likely to have a material adverse effect on our business, financial position or future results of operations. In accordance with generally accepted accounting principles in the United States (U.S. GAAP), we record a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. At March 31, 2013, we have accrued $14,447 for legal proceedings and none at March 31, 2012.