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IMPAIRMENT ON PROPERTY, PLANT AND EQUIPMENT
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12 Months Ended | ||
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Mar. 31, 2012
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| Property, Plant and Equipment [Abstract] | |||
| Impairment On Property, Plant and Equipment [Text Block] |
During the year ended March 31, 2012, the Company acquired certain machineries in order to manufacture lead plate under the external formation technique for commercial purpose in Jiangsu Province, PRC. However, on March 1, 2012, the PRC government released a consultation paper concerning about the further governance and restrictions on lead acid batteries industry. In accordance with the consultation paper, any new projects of manufacturing lead plates for commercial purpose in the PRC will no longer be approved.
After reviewing the consultation paper, management believes it is highly likely that the proposed policies of not granting approval to any new projects of manufacturing lead plates for commercial purpose would be implemented and enforced by the PRC government in the near future.
The management reviewed the recently acquired machineries immediately and identified items which could be directly integrated into the existing production lines of lead acid batteries production operating under internal formation technique in Xuyi Jiangsu. For items which could not be integrated directly, after the costs and benefits analysis of modification, the management decided to dispose of them in the near future. As of March 31, 2012, a full impairment of US$2,857,000 was made on these machineries as the management estimated that the scrap values of these assets are minimal.
On May 31, 2012, the PRC government released new policy to govern the lead acid batteries industry with effect from July 1, 2012, which confirmed the estimation of the management in relation to the final implementation of the tightened policies as initiated in the consultation paper. |