SHORT-TERM BANK BORROWINGS

12 Months Ended

Mar. 31, 2012

13.

SHORT-TERM BANK BORROWINGS

Short-term bank borrowings comprise of the followings:

			As of March 31,		As of March 31,
	Note		2012		2011
			US$’000		US$’000

Short-term bank loans		(i)		52,090		35,770
Bills financing		(ii)		116,747		29,389

				168,837		65,159

(i)

Short-term bank loans

Short-term bank loans represent amounts due to various banks which are due within 12 months, and these loans can normally be renewed with the banks upon expiry/maturity.

The loans are collateralized by assets of the Company with carrying values as follows:

	As of March 31,		As of March 31,
	2012		2011
	US$’000		US$’000

Long term land lease prepayments and buildings		4,142		-
Trade receivables		11,090		5,038

		15,232		5,038

Various parties have also issued guarantee against these short-term bank loans as follows:

	As of March 31,		As of March 31,
	2012		2011
	US$’000		US$’000

Corporate and personal guarantees issued by related parties (Note 15(d))		24,524		25,389
Corporate guarantees issued by third parties		1,426		5,343
Corporate and personal guarantees issued jointly by related parties and a third party (Note 15(d))		11,881		-

The weighted average annual interest rates of the short-term bank loans were 6.01% and 5.05% as of March 31, 2012 and 2011 respectively.

(ii)

Bills financing

Bill financing represents amounts due to various banks which are repayable within nine months from the date of issue. As of March 31, 2012 and 2011, the bills are secured by certain restricted bank balances of the Company with carrying value of US$69,066,000 and US$14,122,000 and guaranteed by certain related parties and third parties jointly to the extent of US$59,414,000 and US$8,238,000, respectively.

The weighted average annual interest rates of the bills financing were 4.29% and 3.31% as of March 31, 2012 and 2011, respectively.