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Concentrations of Credit Risk and Major Customers

12 Months Ended

Mar. 31, 2022

Risks and Uncertainties [Abstract]

CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS

17. CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS

The Group’s financial instruments that are exposed to concentrations of credit risk consist primarily of its cash and cash equivalents and trade receivables.

The Group’s cash and cash equivalents are high-quality deposits placed with authorized banking institutions. This investment policy limits the Group’s exposure to concentrations of credit risk.

The trade receivable balances largely represent amounts due from the Group’s principal customers who are generally international organizations with high credit ratings. Letters of credit are the principal security obtained to support lines of credit or negotiated contracts from a customer. As a consequence, related credit risk is limited.

Accounts receivable from the four customers with the largest receivable balances or customers that individually comprised 10% or more of receivable balance as of March 31, 2021 and 2022 are as follows:

		Percentage of
		accounts receivable
		2021				2022
		%				%
Customer A			**				30.3
Customer B			43.5				23.3
Customer C			10.8				22.0
Customer D			28.0				12.5
Customer E			12.2				**
Four largest receivable balances			94.5				88.1

** Not among the top four receivable balances or individually comprised 10% or more of receivable balance as of respective year end.

A substantial percentage of the Group’s sales are made to three customers and are typically on an open account basis. Customers accounting for 10% or more of total revenue from contracts with customers in any of the years ended March 31, 2020, 2021 and 2022 are as follows:

		Year ended March 31,
		2020				2021				2022
		%				%				%
Customer B (note a)			48.2				46.6				33.4
Customer C (note b)			20.8				25.9				26.5
Customer D (note a)			14.4				15.3				16.7
			83.4				87.8				76.6

Notes:

(a) Sales to this customer were reported in both of the Metal Stamping and Mechanical OEM and Electric OEM operating segments.

(b) Sales to this customer was reported in the Metal Stamping operating segment.

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- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-URI https://asc.fasb.org/topic&trid=2134479

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- References

No definition available.

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