Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Mar. 31, 2014 | |
Document and Entity Information | ' |
Entity Registrant Name | 'ATA Inc. |
Entity Central Index Key | '0001420529 |
Document Type | '20-F |
Document Period End Date | 31-Mar-14 |
Amendment Flag | 'false |
Current Fiscal Year End Date | '--03-31 |
Entity Well-known Seasoned Issuer | 'No |
Entity Voluntary Filers | 'No |
Entity Current Reporting Status | 'Yes |
Entity Filer Category | 'Accelerated Filer |
Entity Common Stock, Shares Outstanding | 46,091,518 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'FY |
Consolidated_Balance_Sheets
Consolidated Balance Sheets | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 |
USD ($) | CNY | CNY | |
Current assets: | ' | ' | ' |
Cash and cash equivalents (including cash of VIE of RMB12,118,865 and RMB33,698,280 as of March 31, 2013 and 2014, respectively) | $50,181,311 | 311,947,098 | 290,029,715 |
Restricted cash | 434,335 | 2,700,000 | ' |
Accounts receivable, net (including accounts receivable, net of VIE of RMB11,441,392 and RMB19,564,392 as of March 31, 2013 and 2014, respectively) | 10,995,604 | 68,353,075 | 51,114,718 |
Prepaid expenses and other current assets (including prepaid expenses and other current assets of VIE of RMB3,395,536 and RMB1,455,916 as of March 31, 2013 and 2014, respectively) | 2,427,880 | 15,092,674 | 13,625,663 |
Total current assets | 64,039,130 | 398,092,847 | 354,770,096 |
Property and equipment, net (including property and equipment, net of VIE of RMB1,277,283 and RMB894,182 as of March 31, 2013 and 2014, respectively) | 8,978,538 | 55,814,182 | 61,310,690 |
Goodwill | 4,988,724 | 31,011,902 | 23,422,850 |
Intangible assets, net | 288,420 | 1,792,935 | 15,082,874 |
Other assets | 727,890 | 4,524,858 | 3,231,971 |
Total assets | 79,022,702 | 491,236,724 | 457,818,481 |
Current liabilities: | ' | ' | ' |
Accrued expenses and other payables (including accrued expenses and other payables of VIE without recourse to ATA Inc. of RMB5,058,492 and RMB14,280,824 as of March 31, 2013 and 2014, respectively) | 11,062,052 | 68,766,143 | 72,191,260 |
Deferred revenues (including deferred revenues of VIE without recourse to ATA Inc. of RMB493,284 and RMB1,308,993 as of March 31, 2013 and 2014, respectively) | 1,348,582 | 8,383,327 | 7,376,527 |
Total current liabilities | 12,410,634 | 77,149,470 | 79,567,787 |
Deferred revenues | 353,160 | 2,195,382 | 2,644,294 |
Deferred income tax liabilities | ' | ' | 58,681 |
Total liabilities | 12,763,794 | 79,344,852 | 82,270,762 |
Shareholders' equity: | ' | ' | ' |
Common shares: Par value USD 0.01, authorized: 500,000,000 shares Issued: 46,000,312 and 46,091,518 shares as of March 31, 2013 and 2014, respectively Outstanding: 45,105,312 and 45,281,518 shares as of March 31, 2013 and 2014, respectively | 558,988 | 3,474,894 | 3,461,060 |
Treasury shares-26,440 and 37,118 common shares as of March 31, 2013 and 2014, respectively, at cost | -165,653 | -1,029,766 | -329,357 |
Additional paid-in capital | 70,453,120 | 437,964,776 | 427,443,700 |
Accumulated other comprehensive loss | -4,366,825 | -27,145,929 | -26,379,146 |
Accumulated deficit | -220,722 | -1,372,103 | -28,648,538 |
Total shareholders' equity | 66,258,908 | 411,891,872 | 375,547,719 |
Commitments and contingencies | ' | ' | ' |
Total liabilities and shareholders' equity | $79,022,702 | 491,236,724 | 457,818,481 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 |
USD ($) | CNY | USD ($) | CNY | |
Accounts receivable, net | $10,995,604 | 68,353,075 | ' | 51,114,718 |
Prepaid expenses and other current assets | 2,427,880 | 15,092,674 | ' | 13,625,663 |
Property and equipment, net | 8,978,538 | 55,814,182 | ' | 61,310,690 |
Accrued expenses and other payables | 11,062,052 | 68,766,143 | ' | 72,191,260 |
Deferred revenues | $1,348,582 | 8,383,327 | ' | 7,376,527 |
Common shares, Par value (in dollars per share) | $0.01 | ' | $0.01 | ' |
Common shares, authorized shares | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 |
Common shares, Issued shares | 46,091,518 | 46,091,518 | 46,000,312 | 46,000,312 |
Common shares, Outstanding shares | 45,281,518 | 45,281,518 | 45,105,312 | 45,105,312 |
Treasury shares, number of common shares | 37,118 | 37,118 | 26,440 | 26,440 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income | 12 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
USD ($) | CNY | CNY | CNY | |
Consolidated Statements of Comprehensive Income | ' | ' | ' | ' |
Net revenues | $61,879,605 | 384,668,378 | 366,675,495 | 352,085,560 |
Cost of revenues | 30,319,855 | 188,480,346 | 188,831,873 | 158,818,041 |
Gross profit | 31,559,750 | 196,188,032 | 177,843,622 | 193,267,519 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 4,451,660 | 27,673,298 | 21,846,305 | 18,402,166 |
Sales and marketing | 7,602,354 | 47,259,273 | 49,394,470 | 46,345,286 |
General and administrative | 11,518,824 | 71,605,616 | 70,449,357 | 61,683,088 |
Impairment of intangible assets | 1,931,899 | 12,009,457 | ' | ' |
Provision for (reversal of) doubtful accounts | -601,350 | -3,738,232 | 9,140,062 | 2,350,990 |
Total operating expenses | 24,903,387 | 154,809,412 | 150,830,194 | 128,781,530 |
Income from operations | 6,656,363 | 41,378,620 | 27,013,428 | 64,485,989 |
Other income: | ' | ' | ' | ' |
Interest income | 767,329 | 4,770,024 | 3,122,304 | 2,061,020 |
Foreign currency exchange gains (losses), net | -7,915 | -49,200 | 77,240 | 3,633,543 |
Other income | 172,520 | 1,072,453 | ' | ' |
Total other income, net | 931,934 | 5,793,277 | 3,199,544 | 5,694,563 |
Earnings before income taxes | 7,588,297 | 47,171,897 | 30,212,972 | 70,180,552 |
Income tax expense | 3,200,480 | 19,895,462 | 7,004,982 | 14,339,082 |
Net income | 4,387,817 | 27,276,435 | 23,207,990 | 55,841,470 |
Other comprehensive income: | ' | ' | ' | ' |
Foreign currency translation adjustment, net of nil income taxes | -123,348 | -766,783 | -374,747 | -3,787,210 |
Comprehensive income | $4,264,469 | 26,509,652 | 22,833,243 | 52,054,260 |
Basic earnings per common share (in CNY and dollars per share) | $0.10 | 0.59 | 0.5 | 1.22 |
Diluted earnings per common share (in CNY and dollars per share) | $0.10 | 0.59 | 0.5 | 1.19 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity | Total | Total | Common shares | Common shares | Treasury Shares | Treasury Shares | Receivable from shareholders | Additional paid-in capital | Additional paid-in capital | Accumulated other comprehensive loss | Accumulated other comprehensive loss | Accumulated deficit | Accumulated deficit |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | |
Balance at Mar. 31, 2011 | ' | 364,063,000 | ' | 3,428,840 | ' | ' | -1,035,796 | ' | 491,585,143 | ' | -22,217,189 | ' | -107,697,998 |
Balance (in shares) at Mar. 31, 2011 | ' | ' | ' | 44,596,416 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | 55,841,470 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,841,470 |
Foreign currency translation adjustment, net of nil tax | ' | -3,787,210 | ' | ' | ' | ' | ' | ' | ' | ' | -3,787,210 | ' | ' |
Share-based compensation (Note 11) | ' | 12,264,397 | ' | ' | ' | ' | ' | ' | 12,264,397 | ' | ' | ' | ' |
Exercise of common share option and issuance of common shares (Note 11) | ' | 631,844 | ' | 13,963 | ' | ' | ' | ' | 617,881 | ' | ' | ' | ' |
Exercise of common share option and issuance of common shares (Note 11) (in shares) | ' | ' | ' | 219,210 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment from shareholders (Note 11) | ' | 1,035,796 | ' | ' | ' | ' | 1,035,796 | ' | ' | ' | ' | ' | ' |
Special cash dividend (Note 13) | ' | -63,634,726 | ' | ' | ' | ' | ' | ' | -63,634,726 | ' | ' | ' | ' |
Balance at Mar. 31, 2012 | ' | 366,414,571 | ' | 3,442,803 | ' | ' | ' | ' | 440,832,695 | ' | -26,004,399 | ' | -51,856,528 |
Balance (in shares) at Mar. 31, 2012 | ' | ' | ' | 44,815,626 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | 23,207,990 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,207,990 |
Foreign currency translation adjustment, net of nil tax | ' | -374,747 | ' | ' | ' | ' | ' | ' | ' | ' | -374,747 | ' | ' |
Share-based compensation (Note 11) | ' | 12,874,056 | ' | ' | ' | ' | ' | ' | 12,874,056 | ' | ' | ' | ' |
Issuance of common shares with net-settlement of employee individual income tax (Note 11) | ' | -913,453 | ' | 18,257 | ' | ' | ' | ' | -931,710 | ' | ' | ' | ' |
Issuance of common shares with net-settlement of employee individual income tax (in shares) (Note 11) | ' | ' | ' | 289,686 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common shares (Note 12) | ' | -329,357 | ' | ' | ' | -329,357 | ' | ' | ' | ' | ' | ' | ' |
Special cash dividend (Note 13) | ' | -25,331,341 | ' | ' | ' | ' | ' | ' | -25,331,341 | ' | ' | ' | ' |
Balance at Mar. 31, 2013 | ' | 375,547,719 | ' | 3,461,060 | ' | -329,357 | ' | ' | 427,443,700 | ' | -26,379,146 | ' | -28,648,538 |
Balance (in shares) at Mar. 31, 2013 | ' | 45,105,312 | ' | 45,105,312 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 4,387,817 | 27,276,435 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,276,435 |
Foreign currency translation adjustment, net of nil tax | -123,348 | -766,783 | ' | ' | ' | ' | ' | ' | ' | ' | -766,783 | ' | ' |
Share-based compensation (Note 11) | ' | 10,534,910 | ' | ' | ' | ' | ' | ' | 10,534,910 | ' | ' | ' | ' |
Issuance of common shares with net-settlement of employee individual income tax (Note 11) | ' | -567,881 | ' | 13,834 | ' | -567,881 | ' | ' | -13,834 | ' | ' | ' | ' |
Issuance of common shares with net-settlement of employee individual income tax (in shares) (Note 11) | ' | ' | ' | 176,206 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common shares (Note 12) | ' | -132,528 | ' | ' | ' | -132,528 | ' | ' | ' | ' | ' | ' | ' |
Balance at Mar. 31, 2014 | $66,258,908 | 411,891,872 | $558,988 | 3,474,894 | ($165,653) | -1,029,766 | ' | $70,453,120 | 437,964,776 | ($4,366,825) | -27,145,929 | ($220,722) | -1,372,103 |
Balance (in shares) at Mar. 31, 2014 | 45,281,518 | ' | 45,281,518 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows | 12 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
USD ($) | CNY | CNY | CNY | |
Cash flows from operating activities: | ' | ' | ' | ' |
Net income | $4,387,817 | 27,276,435 | 23,207,990 | 55,841,470 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' |
Unrealized foreign currency exchange gain | ' | ' | ' | -857,940 |
Provision for (reversal of) doubtful accounts | -601,350 | -3,738,232 | 9,140,062 | 2,350,990 |
Impairment of intangible assets | 1,931,899 | 12,009,457 | ' | ' |
Depreciation and amortization | 1,730,000 | 10,754,370 | 10,617,534 | 11,278,264 |
Loss (gain) from disposal of property and equipment | 69,114 | 429,642 | -64,608 | 4,067 |
Share-based compensation | 1,694,696 | 10,534,910 | 12,874,056 | 12,264,397 |
Deferred income tax expense (benefit) | -115,353 | -717,083 | -3,221,555 | 1,149,668 |
Changes in operating assets and liabilities, net of effect of an acquisition: | ' | ' | ' | ' |
Restricted cash | -434,335 | -2,700,000 | ' | ' |
Accounts receivable | -2,057,481 | -12,790,125 | 21,589,791 | -37,143,965 |
Income tax payable | -280,527 | -1,743,871 | 12,564,291 | -3,831,623 |
Prepaid expenses and other current assets | -21,249 | -132,091 | 786,842 | -2,001,412 |
Other assets | -247,645 | -1,539,462 | 1,358,490 | -1,465,719 |
Accrued expenses and other payables | -138,035 | -858,078 | -662,767 | 14,255,685 |
Deferred revenues | 89,745 | 557,888 | -20,412,383 | 7,508,984 |
Net cash provided by operating activities | 6,007,296 | 37,343,760 | 67,777,743 | 59,352,866 |
Cash flows from investing activities : | ' | ' | ' | ' |
Cash paid for property and equipment | -667,616 | -4,150,169 | -7,966,826 | -5,367,648 |
Cash receipt from property and equipment disposal | 2,846 | 17,690 | ' | 20,640 |
Payment for XingWei acquisition, net of cash acquired | -1,580,771 | -9,826,706 | ' | ' |
Net cash used in investing activities | -2,245,541 | -13,959,185 | -7,966,826 | -5,347,008 |
Cash flows from financing activities : | ' | ' | ' | ' |
Proceeds from exercise of share options | ' | ' | ' | 631,844 |
Cash paid for employee individual income tax for net-settlement of vested shares | -91,352 | -567,881 | -913,453 | ' |
Cash paid for repurchase of common shares | -21,319 | -132,528 | -329,357 | ' |
Collection of receivable from shareholders | ' | ' | ' | 1,035,796 |
Special cash dividend | ' | ' | -25,331,341 | -63,634,726 |
Net cash used in financing activities | -112,671 | -700,409 | -26,574,151 | -61,967,086 |
Effect of foreign exchange rate changes on cash | -123,348 | -766,783 | -374,747 | -2,929,270 |
Net increase (decrease) in cash | 3,525,736 | 21,917,383 | 32,862,019 | -10,890,498 |
Cash and cash equivalent at beginning of year | 46,655,575 | 290,029,715 | 257,167,696 | 268,058,194 |
Cash and cash equivalent at end of year | 50,181,311 | 311,947,098 | 290,029,715 | 257,167,696 |
Supplemental disclosures of cash flow information : | ' | ' | ' | ' |
Cash paid for income tax | 3,633,979 | 22,590,270 | 3,920,712 | 17,267,282 |
Cash refunded for income tax | -37,619 | -233,853 | -6,258,466 | -246,245 |
Non-cash investing and financing activities: | ' | ' | ' | ' |
Acquisition of property and equipment included in accrued expenses and other payables | ' | ' | 1,841,182 | 349,090 |
DESCRIPTION_OF_BUSINESS_ORGANI
DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS | 12 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS | ' | |||||||||||||
DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS | ' | |||||||||||||
(1) DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS | ||||||||||||||
Description of Business and Organization | ||||||||||||||
ATA Inc. (the “Company”), through its wholly-owned subsidiaries, ATA Testing Authority (Holdings) Limited (“ATA BVI”), Xing Wei Institute (Hong Kong) Limited (“Xing Wei”), ATA Testing Authority (Beijing) Limited (“ATA Testing”), Beijing JinDiXin Software Technology Limited (“Beijing JDX”), ATA Learning (Beijing) Inc. (“ATA Learning”), Zhong Xiao Zhi Xing Education Technology Company Limited (“Zhi Xing”), and its consolidated variable interest entity (“VIE”), ATA Online (Beijing) Education Technology Limited (“ATA Online”) (collectively, referred to as the “Group”), provides computer-based testing services, test-based educational services, test preparation and training solutions and other related services in the People’s Republic of China (the “PRC”). | ||||||||||||||
Significant Concentrations and Risks | ||||||||||||||
The Group is subject to the following significant concentration and risks: | ||||||||||||||
Country risk | ||||||||||||||
The Group is subject to special risks associated with the PRC. These include risks associated with, among others, the political, economic, legal and social environment in the PRC, including the relative difficulty of protecting and enforcing intellectual property rights in the PRC. The interpretation and application of current or proposed requirements and regulations may have an adverse effect on the Group’s business, financial condition and results of operations. In addition, the ability to negotiate and implement specific business development projects in a timely and favorable manner may be impacted by political considerations unrelated to or beyond the control of the Group. Although the PRC government has been pursuing economic reform policies for over three decades, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered. Any change in PRC government policies and regulations affecting the education and testing service industry may have a negative impact on the Group’s operating results and financial condition. | ||||||||||||||
Revenue concentration | ||||||||||||||
For the years ended March 31, 2012, 2013 and 2014, RMB240.7 million, RMB246.9 million and RMB250.3 million, representing 68.4%, 67.3% and 65.1% of the Group’s net revenues, respectively, were generated from service fees from Chinese government controlled entities including governmental agencies, educational institutions and industry associations controlled by the PRC government. The demand for the Group’s products and services by these agencies, institutions and associations is affected by government budgetary cycles, funding availability and government policies. Funding reductions, reallocations or delays could adversely impact demand for the Group’s products and services or reduce the fees these customers are willing to pay for the Group’s products and services. | ||||||||||||||
Net revenues from customers that individually exceeded 10% of the Group’s net revenues are as follows: | ||||||||||||||
Year Ended March 31, | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
RMB | % | RMB | % | RMB | % | |||||||||
China Banking Association | 36,971,719 | 10.50% | 60,573,979 | 16.50% | 67,516,046 | 17.60% | ||||||||
Securities Association of China | 131,404,013 | 37.30% | 84,244,267 | 23.00% | 64,057,268 | 16.70% | ||||||||
The Chinese Institute of Certified Public Accountants | — | — | 54,255,662 | 14.80% | 61,654,948 | 16.00% | ||||||||
Accounts receivable, net from customers, that individually exceeded 10% of the Group’s accounts receivable, net are as follows: | ||||||||||||||
March 31, | ||||||||||||||
2013 | 2014 | |||||||||||||
RMB | % | RMB | % | |||||||||||
Securities Association of China | 19,643,518 | 38.40% | 17,481,156 | 25.60% | ||||||||||
China Banking Association | — | — | 7,779,899 | 11.40% | ||||||||||
China Customs Education and Training Center | 7,927,308 | 15.50% | 7,482,981 | 10.90% | ||||||||||
Concentration of cash and cash equivalent balances held at financial institutions | ||||||||||||||
Cash and cash equivalents balances include deposits in: | ||||||||||||||
March 31, | ||||||||||||||
2013 | 2014 | |||||||||||||
RMB | RMB | |||||||||||||
Financial institutions in the mainland of the PRC | ||||||||||||||
— Denominated in Renminbi (“RMB”) | 248,284,360 | 291,498,542 | ||||||||||||
— Denominated in United Stated Dollars (“USD”) | 719 | 6,517,884 | ||||||||||||
Total cash and cash equivalents balances held at mainland PRC financial institutions | 248,285,079 | 298,016,426 | ||||||||||||
Financial institutions in Hong Kong Special Administrative Region (“HKSAR”) of the PRC | ||||||||||||||
— Denominated in RMB | 16,662,994 | 12,052,519 | ||||||||||||
— Denominated in Hong Kong Dollar | 3,172,392 | 307,363 | ||||||||||||
— Denominated in USD | 21,909,250 | 1,570,790 | ||||||||||||
Total cash balances held at HKSAR financial institutions | 41,744,636 | 13,930,672 | ||||||||||||
Total cash and cash equivalents balances held at financial institutions | 290,029,715 | 311,947,098 | ||||||||||||
Management believes these financial institutions have high credit ratings. Cash and cash equivalents denominated in currencies other than functional currency are subject to foreign currency risk due to the appreciation or depreciation of the RMB under the current exchange rate regime in the PRC and HKSAR. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||
(a) Principles of consolidation | ||||||||
The consolidated financial statements include the financial statements of the Company, its subsidiaries and its VIE for which the Group is the primary beneficiary. All significant intercompany balances and transactions have been eliminated upon consolidation. | ||||||||
(b) Basis of presentation | ||||||||
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | ||||||||
(c) Use of estimates | ||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management of the Group to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include the determination of primary beneficiary of VIE, the fair values of assets acquired and liabilities assumed in business combination, the fair values of share-based payments, the plans for indefinite reinvestment of undistributed earnings of the PRC subsidiaries in PRC, the collectibility of accounts receivable, the realizability of deferred income tax assets, the estimate for useful lives and residual values of long-lived assets, the recoverability of the carrying values of long-lived assets and goodwill, realizable value of inventories and with respect to revenue recognition, the expected service period for course programs and the expected licensing period for perpetual licenses. Actual results could differ from those estimates. | ||||||||
(d) Foreign currency translation and risks | ||||||||
The accompanying consolidated financial statements have been expressed in RMB, the Company’s reporting currency. | ||||||||
The Company, ATA BVI and Xing Wei’s functional currency is the USD. The functional currency of the Company’s PRC subsidiaries and VIE is the RMB. | ||||||||
Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting foreign exchange gains and losses are included in the consolidated statements of comprehensive income in the line item “Foreign currency exchange gains(losses), net.” | ||||||||
Assets and liabilities of the Company, ATA BVI and Xing Wei are translated into RMB using the applicable exchange rate at each balance sheet date. Revenues and expenses are translated into RMB at average rates prevailing during the year. The resulting foreign currency translation adjustments are recognized as a separate component of accumulated other comprehensive loss within equity. | ||||||||
For the convenience of the readers, the 2014 RMB amounts included in the accompanying consolidated financial statements have been translated into USD at the rate of USD1.00 =MB6.2164, the noon buying rate in New York cable transfers of RMB per USD as set forth in the H.10 weekly statistical release of Federal Reserve Board, as of March 31, 2014. No representation is made that the RMB amounts could have been, or could be, converted into USD at that rate or at any other rate on March 31, 2014. | ||||||||
(e) Commitments and contingencies | ||||||||
In the normal course of business, the Group is subject to contingencies, such as legal proceedings and claims that cover a wide range of matters. Liabilities for such contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. | ||||||||
(f) Fair value measurements | ||||||||
The Group utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Group determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: | ||||||||
· Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. | ||||||||
· Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. | ||||||||
· Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. | ||||||||
The Group did not have any nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis as of March 31, 2013. One of the Group’s intangible assets was measured at fair value of RMB nil as of March 31, 2014 (note 6(b)). | ||||||||
The Company’s financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, advances to third parties, employees and suppliers, which are included in the prepaid expenses and other current assets, and accrued expenses and other payables, all of which have a carrying amount that approximate fair value because of the short maturity of these instruments. | ||||||||
(g) Revenue recognition | ||||||||
The Group’s revenues are principally derived from the provision of testing services, test-based educational services and test preparation solutions. The Group recognizes revenues when all of the following have occurred: | ||||||||
· persuasive evidence of an agreement with the customer exists; | ||||||||
· services have been performed and/or delivery of goods has occurred; | ||||||||
· the fees for services performed and/or price of goods sold are fixed or determinable; and | ||||||||
· collectibility of the fees and/or sales proceeds is reasonably assured. | ||||||||
The application of the above criteria for revenue recognition for each type of service or product is as follows: | ||||||||
i) Testing services | ||||||||
Fees for testing services are recognized upon the completion of the exam by the test taker since the Group has no significant future involvement after the completion of the examination. Fees received in advance of test delivery are recorded as deferred revenue. | ||||||||
ii) Test preparation and training solutions | ||||||||
The Group derives test preparation and training solutions revenues from online test preparation and training service and online training platform development and maintenance service. | ||||||||
a) Online test preparation and training service fees | ||||||||
The Group sells online training to end users directly or through distributors on a consignment basis. The online training entitles end users to access online test preparation and training services during a specified service period, which normally ranges between 90 to 365 days from activation. | ||||||||
Online training revenue is recognized on a straight-line basis over the service period commencing at the point of time the online training is activated. If the online training sold to end users is not activated before the expiration date, related online service revenue is recognized on the expiration date. For online training granted with fixed online hours, the Group compares the revenue recognized to the actual completion status, and makes any revenue adjustments to reflect the actual completion status. | ||||||||
The Group is not contractually obligated to accept, nor has the Group historically accepted, returns from end users. | ||||||||
b) Online training platform development and maintenance service fees | ||||||||
The Group develops online training platform based on customer’s requirements and provides maintenance services during the contract period. The online training platform enables end users to participate online training courses. | ||||||||
Fees from online training platform development and maintenance service are recognized, when the platform has been delivered, collectibility is reasonably assured, and on a straight-line basis over the contractual period. | ||||||||
iii) Other revenue | ||||||||
a) Test-based educational services | ||||||||
Fees from educational institutions for degree major course programs are recognized, when collectibility is reasonably assured, on a straight-line basis over the contractual period , which typically starts in the month of September and ends in the month of June or August of the following year, or 10 to 12 months. | ||||||||
Fees from educational institutions for single course programs are recognized on a straight-line basis over the expected service period or the contractual period, whichever is longer. At the end of each reporting period upon the closing of the Group’s financial records, the Group compares the revenue recognized at the onset of the contracts to the actual completion status of each contract, on a contract by contract basis, and makes any revenue adjustments to reflect the actual completion status. | ||||||||
Fees are not refundable if the student fails to complete one or more of the courses or the entire degree major course programs or fails any of the exams. | ||||||||
b) Licensing fees from authorized test centers | ||||||||
The Group receives a fixed fee for a perpetual license or an initial fee plus continuing annual fees for renewable annual licenses that provide authorized test centers the right to use the Group’s brand name and E-testing platform. | ||||||||
The Group is obligated to provide ongoing technical support and unspecific system upgrades; and to provide training to authorized test centers’ staff. Initial fees for renewable annual license and fixed fees for perpetual licenses are recognized on a straight-line basis over the expected licensing period of 10 years, which is the period the Group is expected to have continuing involvement with the authorized test centers. Management estimates the expected licensing period based on its historical retention experience, factoring in the expected level of future competition, the risk of technological obsolescence, technological innovation, and the expected changes in the education training environment. | ||||||||
c) Test development services | ||||||||
Test development service fees are recognized upon the acceptance of the developed tests by the customer. The period to develop the tests is short, generally within two to six months from commencement of development. | ||||||||
d) Test administration software products | ||||||||
Test administration software products sales are recognized upon delivery and when collectibility is reasonably assured. | ||||||||
iv) Business tax and value added tax (“VAT”) | ||||||||
Revenue is recognized net of business taxes at the rate of 5% of gross revenues or VAT at the rate of 3% or 6% of gross revenues. Business tax and VAT collected from customers, net of VAT paid for purchases, is recorded as a liability in the consolidated balance sheets until paid to the tax authorities. | ||||||||
(h) Cost of revenues | ||||||||
Cost of revenues consists primarily of cost of test monitoring, royalty fees for IT vendors and test sponsor licensing arrangements, cost of inventories, payroll compensation, technical support, and other related costs, which are directly attributable to the rendering of services and delivery of goods. | ||||||||
The test monitoring costs are recognized upon completion of examinations based on actual number of test takers. Royalty fees are recognized as cost of revenues based on actual usage according to contract provisions. | ||||||||
The test monitoring costs and royalty fees for the years ended March 31, 2012, 2013 and 2014 are as follows: | ||||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Test monitoring costs | 88,232,358 | 129,127,028 | 124,427,159 | |||||
Royalty fees | 22,032,654 | 15,594,990 | 14,850,125 | |||||
(i) Research and development costs | ||||||||
Research and development costs primarily consist of software developed for internal use and software developed for sale. | ||||||||
i) Software developed for internal use | ||||||||
The Group expenses all costs that are incurred in connection with the planning and implementation phases of the development of software. Costs incurred in the development phase are capitalized and amortized over the estimated product life. No costs were capitalized for any of the periods presented. | ||||||||
ii) Software developed for sale | ||||||||
Costs incurred internally in researching and developing a computer software product are charged to expense as research and development costs prior to technological feasibility being established for the product. Once technological feasibility is established, all computer software costs are capitalized until the product is available for general release to customers. Technological feasibility is established upon completion of all the activities that are necessary to substantiate that the computer software product can be produced in accordance with its design specifications, including functions, features, and technical performance requirements. No costs were capitalized for any of periods presented. | ||||||||
(j) Income taxes | ||||||||
Income taxes are accounted for under the asset and liability method. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax loss carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates or tax status is recognized in income in the period that includes the enactment date or the date of change in tax status. A valuation allowance is provided to reduce the amount of deferred income tax assets if it is considered more likely than not that some portion or all of the deferred income tax assets will not be realized. | ||||||||
The Group recognizes in the consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. | ||||||||
A deferred tax liability is not recognized for the excess of the Company’s financial statement carrying amount over the tax basis of its investment in a foreign subsidiary, if there exists specific plans for reinvestment of undistributed earnings of a subsidiary which demonstrate that remittance of the earnings will be postponed indefinitely. | ||||||||
The Group’s accounting policy is to accrue interest and penalties related to unrecognized tax benefits, if and when required, as interest expense and a component of general and administrative expenses, respectively in the consolidated statements of comprehensive income. | ||||||||
(k) Share-based payment | ||||||||
The Group measures the cost of employee share options and nonvested shares based on the grant date fair value of the award and recognizes that cost over the period during which an employee is required to provide services in exchange for the award, which generally is the vesting period. For the graded vesting share options and nonvested shares, the Company recognizes the compensation cost over the requisite service period for each separately vesting portion of the award as if the award is, in substance, multiple awards. When no future services are required to be performed by the employee in exchange for an award of equity instruments, and if such award does not contain a performance or market condition, the cost of the award is expensed on the grant date. When there is a modification of the terms and conditions of an award of equity instruments, the Company measures the pre-modification and post-modification fair value of the equity instruments as of the modification date and recognizes the incremental value as compensation cost over the remaining service period. | ||||||||
When there is a change in the grantee status from an employee to a non-employee, if grantee retains the awards on a change in status and continues to provide substantive services to the Group, the change in status results in a new measurement date for the unvested awards with compensation costs measured as if the awards were newly issued to the grantee on the date of the change in status. If grantee retains the awards on a change in status and is not required to provide substantive services to the grantor subsequent to that change in status, the change in status is, in substance, an acceleration of the vesting of the arrangement. | ||||||||
(l) Cash and cash equivalent | ||||||||
Cash and cash equivalent consists of cash on hand, cash in banks and highly liquid investments with maturity less than three month. | ||||||||
(m) Restricted cash | ||||||||
Restricted cash is restricted as to usage based on contracts entered into with third parties. The restricted cash balance was nil and RMB 2,700,000 (US$434,335) as of March 31, 2013 and 2014. | ||||||||
(n) Accounts receivable | ||||||||
Accounts receivable include amounts billed at the invoiced amount. | ||||||||
The allowance for doubtful accounts is the management’s best estimate of the amount of probable credit losses resulting from the inability of the Group’s customers to make required payments. The allowance for doubtful accounts is based on a review of specifically identified accounts, aging data and historical collection pattern. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group does not have any off-balance-sheet credit exposure related to its customers. | ||||||||
(o) Property and equipment, net | ||||||||
Property and equipment is stated at historical cost. | ||||||||
Depreciation is recognized over the following useful lives on the straight-line method, taking into consideration the assets’ estimated salvage value: | ||||||||
Building | 30 years | |||||||
Computer equipment | 3 to 5 years | |||||||
Furniture, fixtures and office equipment | 5 years | |||||||
Software | 3 to 5 years | |||||||
Motor vehicles | 5 years | |||||||
Leasehold improvements | the shorter of the lease terms or 5 years | |||||||
(p) Intangible assets | ||||||||
Intangible assets acquired are initially recognized and measured at fair value. Intangible assets other than contracts in progress are amortized on a straight-line basis over their respective estimated useful lives, which range from 5 to 12 years. | ||||||||
Contracts in progress acquired in a business combination are subsequently accounted as a reduction of billings upon completion of contracts. | ||||||||
The Company has no intangible assets with indefinite useful lives. | ||||||||
(q) Impairment of long-lived assets, excluding goodwill | ||||||||
Long-lived assets, such as property and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. The Company recognized an impairment loss of intangible assets of Nil, Nil and RMB 12,009,457 for the years ended March 31, 2012, 2013 and 2014, respectively. | ||||||||
(r) Goodwill | ||||||||
Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is reviewed for impairment at least annually. In September 2011, the FASB issued ASU 2011-08, Testing Goodwill for Impairment, which provides an entity the option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount prior to performing the two-step goodwill impairment test. If this is the case, the two-step goodwill impairment test is required. If it is more-likely-than-not that the fair value of a reporting is greater than its carrying amount, the two-step goodwill impairment test is not required. | ||||||||
If the two-step goodwill impairment test is required, first, the fair value of the reporting unit is compared with its carrying amount (including goodwill). If the fair value of the reporting unit is less than its carrying amount, an indication of goodwill impairment exists for the reporting unit and the entity must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying amount, step two does not need to be performed. | ||||||||
The Company performs its annual impairment review of goodwill at March 31, and when a triggering event occurs between annual impairment tests. No impairment loss was recorded for any of the periods presented. | ||||||||
(s) Employee benefit plans | ||||||||
As stipulated by the regulations of the PRC, the Company’s PRC subsidiaries are required to contribute to various defined contribution plans, organized by municipal and provincial governments on behalf of their employees. The contributions to these plans are based on certain percentages of the employee’s standard salary base as determined by the local Social Security Bureau. The Group has no other obligation for the payment of employee benefits associated with these plans beyond the annual contributions described above. | ||||||||
Employee benefit expenses recognized under these plans for the years ended March 31, 2012, 2013 and 2014 are allocated to the following expense items: | ||||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Cost of revenues | 3,847,873 | 4,898,098 | 5,375,566 | |||||
Research and development | 3,694,142 | 4,214,374 | 4,960,632 | |||||
Sales and marketing | 3,551,100 | 5,269,923 | 3,511,656 | |||||
General and administrative | 2,206,793 | 2,608,307 | 2,568,027 | |||||
Total expense due to employee benefit plans | 13,299,908 | 16,990,702 | 16,415,881 | |||||
(t) Earnings per share | ||||||||
Basic earnings per share is computed by dividing net earnings by the weighted average number of common shares outstanding during the year using the two-class method. Under the two-class method, net income is allocated between common shares and other participating securities based on their participating rights in undistributed earnings. The Company’s nonvested shares relating to the share-based awards under the share incentive plan were considered participating securities since the holders of these securities have non-forfeitable rights to cash dividends. | ||||||||
Diluted earnings per share is calculated by dividing net earnings adjusted for the effect of dilutive common equivalent shares, if any, by the weighted average number of common and dilutive common equivalent shares outstanding during the year. Common equivalent shares consist of common shares issuable upon the exercise of outstanding share options (using the treasury stock method). Common equivalent shares in the diluted earnings per share computation are excluded to the effect that they would be anti-dilutive. In calculating the diluted earnings per share, the undistributed earnings are not reallocated to the participating securities and the common and dilutive common equivalent shares. | ||||||||
(u) Segment reporting | ||||||||
The Group has one operating segment, testing and training services. Substantially all of the Group’s operations and customers are located in the PRC. Consequently, no geographic information is presented. | ||||||||
(v) Variable Interest Entity (“VIE”) | ||||||||
PRC regulations prohibit direct foreign ownership of business entities that engage in internet content provision (“ICP’’) services in the PRC. The Company and its subsidiaries are foreign owned business entities under the PRC law and accordingly are prohibited from providing ICP services in the PRC, including having ownership of entities engaged in providing such services. ATA Online provides ICP online test preparation services in the PRC. | ||||||||
The Group has no legal ownership interest in ATA Online. The legal ownership interests of ATA Online are held by Mr. Kevin Xiaofeng Ma, the Company’s co-founder and chairman and Mr. Walter Lin Wang, the Company’s co-founder and director. | ||||||||
A series of contractual agreements, including loan agreements, a call option and cooperation agreement, an equity pledge agreement, a technical support agreement, a strategic consulting service agreement and a power of attorney (collectively, the “VIE Agreements”) were entered among ATA BVI, ATA Learning, ATA Online, Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang. As a result of the VIE Agreements and as described below, the financial statements of ATA Online are consolidated in the Company’s consolidated financial statements. | ||||||||
ATA Online is determined to be a VIE because although Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang are the equity holders of ATA Online, (i) their equity investment of RMB10 million in ATA Online was financed by the Group and (ii) they do not participate in any profit or loss of ATA Online. | ||||||||
Although the Group does not have an equity investment in ATA Online, the Group has other variable interests in ATA Online through, among others, (i) the Group’s subordinated loans to Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang (used by them to finance their equity investment in ATA Online) and other subordinated loans to ATA Online, (ii) the Group’s right, under the loan agreement, to receive all the dividends declared by ATA Online through its equity holders and (iii) the Group’s exclusive purchase option to acquire (or to have the Group’s designee acquire) 100% of the equity interest or assets in ATA Online for a consideration equal to the loans provided by the Group to Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang, to the extent permitted under PRC law. As a result of these variable interests, the Group has the obligation to absorb the expected losses and the right to receive expected residual returns of ATA Online. | ||||||||
Through the VIE Agreements, the Group has a controlling financial interest in ATA Online because the Group (i) has the power to direct activities of ATA Online that most significantly impact the economic performance of ATA Online; and (ii) the obligation to absorb the expected losses and the right to receive expected residual return of ATA Online that could potentially be significant to ATA Online. | ||||||||
Accordingly, the financial statements of ATA Online are consolidated in the Company’s consolidated financial statements. All of the equity (net assets) and net incomes or losses of ATA Online are attributed to the Company; therefore, non-controlling interest in ATA Online is not presented in the Company’s consolidated financial statements. | ||||||||
The key terms of these VIE Agreements are as follows: | ||||||||
Loan agreements: ATA BVI lent to ATA Online’s equity holders, Mr. Kevin Xiaofeng Ma, and Mr. Walter Lin Wang, interest free loans in the amount of RMB10 million for the sole purpose of investing in ATA Online as ATA Online’s registered capital. The equity holders of ATA Online can only repay the loans by transferring all of their legal ownership interest in ATA Online to ATA BVI or to a third party designated by ATA BVI. The equity holders of ATA Online are required to pay to ATA BVI all dividend received from ATA Online. The initial terms of the loans are ten years, which may be extended upon the agreement of ATA BVI and ATA Online’s equity holders. The approval of ATA Online is not required for the renewal of the loan agreements nor can ATA Online terminate the loan agreement during the contract term. ATA BVI lent RMB 1 million on October 27, 2006 and RMB 9 million on July 7, 2009. As of March 31, 2014, the remaining terms of the loan agreements are 2.6 years and 5.3 years for the loans of RMB 1 million and RMB 9 million, respectively, assuming no renewal of the agreement. | ||||||||
Technical support agreement: ATA Learning has the exclusive right to provide technical support services to ATA Online. ATA Online pays a quarterly service fee to ATA Learning. The service fees are mutually agreed by both parties, and are determined based on certain objective criteria such as the actual services required by ATA Online and the actual labor costs, as determined by the number of days and personnel involved, incurred by ATA Learning for providing the services during the relevant period. The term of this agreement is ten years, automatically renewable for successive one year terms unless ATA Learning notifies ATA Online of its intention not to renew 30 days before the relevant term expires. ATA Online may not terminate this agreement during its term or upon its expiration. The agreement was entered into on October 27, 2006 with a remaining term of 2.6 years as of March 31, 2014, assuming no renewal of the agreement. | ||||||||
Strategic consulting service agreement: ATA Learning provides ATA Online with strategic consulting and related services to ATA Online. The fees for these services are determined by ATA Learning and calculated monthly but paid quarterly based on actual time spent providing the services. ATA Learning has the right to adjust the fees payable by ATA Online in accordance with its performance. The term of this agreement is twenty years, automatically renewable for successive one year terms unless ATA Learning notifies ATA Online of its intention not to renew 30 days before the relevant term expires. ATA Online can only terminate this agreement if ATA Learning fails to perform its obligation under this agreement. The agreement was entered into on October 27, 2006 with a remaining term of 12.6 years as of March 31, 2014, assuming no renewal of the agreement. | ||||||||
For the years ended March 31, 2012, 2013 and 2014, the Company billed RMB nil, RMB 12.6 million and RMB 8.0 million to ATA Online based on the technical support agreement and strategic consulting service agreement. For the years ended March 31, 2012, 2013 and 2014, RMB nil, RMB 12.6 million and RMB nil was collected, respectively. | ||||||||
Call option and cooperation agreement: Through the call option and cooperation agreement entered into among ATA BVI, ATA Online and its equity holders, ATA BVI or any party designated by ATA BVI, has an exclusive purchase option to acquire the equity interest in ATA Online from its equity holders or acquire ATA Online’s assets at any time when permitted by applicable Chinese laws and regulations. The proceeds from the exercise of the call option will be applied to repay the loans under the loan agreements described above. Further, without ATA BVI’s prior written consent, ATA Online or its equity holders cannot sell, assign, mortgage or dispose any of ATA Online’s assets or operation, cannot enter into any transaction which may materially affect ATA Online’s assets, liability, operation, equity or other legal rights, and cannot distribute any dividend to its equity holders. ATA BVI is also obligated to provide financial support to ATA Online’s operation to which ATA BVI has no recourse right if ATA Online cannot repay such financing due to its losses. This agreement has an indefinite term and can only be terminated with the unanimous consent of all parties, except that ATA BVI may terminate this agreement with 30 days prior notice to the other parties. | ||||||||
Equity pledge agreement: To secure the payment obligations of ATA Online under the technical support agreement and the strategic consulting service agreement described above, ATA Online’s equity holders have pledged to ATA Learning their entire equity ownership interests in ATA Online. Under this agreement, equity holders of ATA Online may not transfer the pledged equity interest without ATA Learning’s prior written consent. This agreement will also be binding upon successors of the pledgor and transferees of the pledged equity interest. The term of the pledge is the same as the term of the strategic consulting service agreement. ATA Online may terminate this agreement upon the completion of its contractual obligations under the technical support agreement and the strategic consulting service agreement as described above. As of March 31, 2014, the remaining term of this agreement is 12.6 years, assuming no renewal of the strategic consulting service agreement. | ||||||||
Power of attorney: Each of Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang signed a power of attorney, on March 27, 2013 and April 3, 2013 respectively, with ATA Learning to exclusively assign their rights as an shareholder of ATA Online to ATA Learning, including but not limited to voting right and right to appoint director and executive management of ATA Online. The assignment of the shareholder’s rights is legally binding, irrevocable. The agreement is retrospectively effective when the call option and cooperation agreement and equity pledge agreement were effective and remains effective as long as the call option and cooperation agreement and equity pledge agreement are effective. | ||||||||
Risks and uncertainties of the VIE Agreements: The Company relies on the VIE Agreements to operate and control ATA Online. However, these contractual arrangements may not be as effective as direct equity ownership in providing the Company with control over ATA Online. Any failure by ATA Online or its equity holders to perform their obligations under the VIE Agreements would have a material adverse effect on the financial position and financial performance of the Company. All the VIE Agreements are governed by PRC law and provide for the resolution of disputes through arbitration in the PRC. Accordingly, these contracts would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. The legal system in the PRC is not as developed as some other jurisdictions, such as the United States. As a result, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements. In addition, if the legal structure and the VIE Agreements were found to be in violation of any existing or future PRC laws and regulations, the Company may be subject to fines or other legal or administrative sanctions. | ||||||||
In the opinion of management, based on the legal opinion obtained from the Company’s PRC legal counsel, the above contractual arrangements are legally binding and enforceable and do not violate current PRC laws and regulations. However, there are uncertainties regarding the interpretation and application of existing and future PRC laws and regulations. | ||||||||
Accordingly, the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to its opinion. If the current ownership structure of the Company and the VIE Agreements are found to be in violation of any existing or future PRC laws and regulations, the PRC government could: | ||||||||
· revoke the Company’s business and operating licenses; | ||||||||
· levy fines on the Company; | ||||||||
· confiscate any of the Company’s income that they deem to be obtained through illegal operations; | ||||||||
· shut down a portion or all of the Company’s servers or block a portion or all of the Company’s web site; | ||||||||
· discontinue or restrict the Company’s operations in the PRC; | ||||||||
· impose conditions or requirements with which the Company may not be able to comply; | ||||||||
· require the Company to restructure the Company’s corporate and contractual structure; | ||||||||
· take other regulatory or enforcement actions that could be harmful to the Company’s business. | ||||||||
If the imposition of any of these government actions, or any inability to enforce the contractual arrangements upon a breach, causes the Company to lose its ability to direct the activities of ATA Online or receive substantially all the economic benefits and residual returns from ATA Online and the Company is not able to restructure its ownership structure and operations in a satisfactory manner, the Company would no longer be able to consolidate the financial results of ATA Online in the Company’s consolidated financial statements. Total assets, total liability, equity, net sales, net income and cash flows of the Company would be significantly less than the reported amount in the consolidated financial statements of the Company. In the opinion of management, the likelihood of loss in respect of the Company’s current ownership structure or VIE Agreements is remote based on current facts and circumstances. | ||||||||
The equity interests of the VIE are legally held by Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang (nominee equity holders) on behalf of the Company. Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang, are directors of the Company. Mr. Kevin Xiaofeng Ma is also a shareholder of the Company and holds 11.3% of the Company’s total common shares issued and outstanding as of March 31, 2014. The Company cannot assure that when conflicts of interest arise, any of the nominee equity holders will act in the best interests of the Company or such conflicts will be resolved in the Company’s favor. Currently, the Company does not have any arrangements to address potential conflicts of interest between the nominee equity holders and the Company, except that the Company could exercise the purchase option under the exclusive option agreements with the nominee equity holders to request them to transfer all of their equity ownership in the VIE to the Company, ATA Learning or a third party designated by the Company. The Company relies on the nominee equity holders, both of whom are the Company’s directors and owe a fiduciary duty to the Company, to comply with the terms and conditions of the contractual arrangements. Such fiduciary duty requires directors to act in good faith and in the best interests of the Company and not to use their positions for personal gains. If the Company cannot resolve any conflict of interest or dispute between the Company and the nominee equity holders of the VIE, the Company would have to rely on legal proceedings, which could result in disruption of the Company’s business and subject the Company to substantial uncertainty as to the outcome of any such legal proceedings. | ||||||||
The Company’s involvement with the VIEs under the VIE Agreements affected the Company’s consolidated financial position, results of operations and cash flows as indicated below. | ||||||||
The assets and liabilities of ATA Online as of March 31, 2013 and 2014 and the net revenue and net income (loss) and cash flows for the years ended March 31, 2012, 2013 and 2014 are as follows: | ||||||||
March 31, | ||||||||
2013 | 2014 | |||||||
RMB | RMB | |||||||
Cash | 12,118,865 | 33,698,280 | ||||||
Accounts receivable, net | 11,441,392 | 19,564,392 | ||||||
Prepayment and other current assets | 3,395,536 | 1,455,916 | ||||||
Amounts due from related parties | 29,562 | 3,815,811 | ||||||
Total current assets | 26,985,355 | 58,534,399 | ||||||
Property and equipment, net | 1,277,283 | 894,182 | ||||||
Total assets | 28,262,638 | 59,428,581 | ||||||
Accrued expenses and other payables | 5,058,492 | 14,280,824 | ||||||
Amounts due to related parties | 1,804,678 | 9,708,450 | ||||||
Deferred revenue | 493,284 | 1,308,993 | ||||||
Total liabilities | 7,356,454 | 25,298,267 | ||||||
Year ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Net revenue | 49,782,361 | 24,960,260 | 100,204,186 | |||||
Net income (loss) | 25,782,832 | (10,495,582 | ) | 13,224,130 | ||||
Year ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Net cash provided by (used in) operating activities | 16,468,040 | (13,227,174 | ) | 21,829,320 | ||||
Net cash used in investing activities | (75,285 | ) | (1,128,140 | ) | (249,904 | ) | ||
Net cash used in financing activities | (6,255,300 | ) | — | — | ||||
Amounts due from related parties’ represent the amount due from ATA Inc.’s other subsidiaries, which are eliminated on consolidation. | ||||||||
Amounts due to related parties represent the amount due to ATA BVI and ATA Inc.’s other subsidiaries, which are eliminated on consolidation. | ||||||||
All of the assets of ATA Online can be used only to settle obligations of ATA Online. None of the assets of ATA Online has been pledged or collateralized. The creditors of ATA Online do not have recourse to the general credit of ATA BVI or the Company. | ||||||||
(w) Recently issued accounting standards | ||||||||
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). The standard requires that companies present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source (e.g., the release due to cash flow hedges from interest rate contracts) and the income statement line items affected by the reclassification (e.g., interest income or interest expense). If a component is not required to be reclassified to net income in its entirety (e.g., the net periodic pension cost), companies would instead cross reference to the related footnote for additional information (e.g., the pension footnote). ASU 2013-02 is effective for interim and annual reporting periods beginning after December 15, 2012. The Company adopted the new standard on April 1, 2013. The adoption did not have a material impact on its consolidated financial statements or related disclosures. | ||||||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. The new standard is to be applied prospectively but retrospective application is permitted. The adoption is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. |
ACCOUNTS_RECEIVABLE_NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
ACCOUNTS RECEIVABLE, NET | ' | |||||||
ACCOUNTS RECEIVABLE, NET | ' | |||||||
(3) ACCOUNTS RECEIVABLE, NET | ||||||||
Accounts receivable, net is summarized as follows: | ||||||||
March 31, | ||||||||
2013 | 2014 | |||||||
RMB | RMB | |||||||
Accounts receivable | 86,119,787 | 73,041,508 | ||||||
Less: allowance for doubtful accounts | (35,005,069 | ) | (4,688,433 | ) | ||||
Accounts receivable, net | 51,114,718 | 68,353,075 | ||||||
Management performs ongoing credit evaluations of its customers’ financial condition and generally does not require collateral on accounts receivable. | ||||||||
The activity in the allowance for doubtful accounts for accounts receivable for the years ended March 31, 2012, 2013 and 2014 is as follows: | ||||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Beginning allowance for doubtful accounts | 27,938,198 | 30,100,005 | 35,005,069 | |||||
Additions charged to (reversal of) provision for doubtful accounts | 2,350,990 | 9,140,062 | (3,738,232 | ) | ||||
Write-off of accounts receivable | (189,183 | ) | (4,234,998 | ) | (26,578,404 | ) | ||
Ending allowance for doubtful accounts | 30,100,005 | 35,005,069 | 4,688,433 |
PREPAID_EXPENSES_AND_OTHER_CUR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended | |||||
Mar. 31, 2014 | ||||||
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ' | |||||
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ' | |||||
(4) PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||||||
Prepaid expenses and other current assets consist of the following: | ||||||
March 31, | ||||||
2013 | 2014 | |||||
RMB | RMB | |||||
Income tax receivable | — | 429,642 | ||||
Deferred income tax assets (note 10) | 7,524,161 | 8,429,138 | ||||
Advances to employees | 1,022,036 | 1,134,415 | ||||
Other current assets | 5,079,466 | 5,099,479 | ||||
Total prepaid expenses and other current assets | 13,625,663 | 15,092,674 |
PROPERTY_AND_EQUIPMENT_NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
PROPERTY AND EQUIPMENT, NET | ' | |||||||
PROPERTY AND EQUIPMENT, NET | ' | |||||||
(5) PROPERTY AND EQUIPMENT, NET | ||||||||
Property and equipment, net consist of the following: | ||||||||
March 31, | ||||||||
2013 | 2014 | |||||||
RMB | RMB | |||||||
Building | 53,049,213 | 53,049,213 | ||||||
Computer equipment | 27,631,940 | 25,831,772 | ||||||
Furniture, fixtures and office equipment | 572,567 | 337,442 | ||||||
Software | 12,828,775 | 13,676,153 | ||||||
Motor vehicles | 2,023,598 | 2,277,113 | ||||||
Leasehold improvements | 10,204,808 | 6,792,895 | ||||||
106,310,901 | 101,964,588 | |||||||
Less: accumulated depreciation and amortization | (45,000,211 | ) | (46,150,406 | ) | ||||
Property and equipment, net | 61,310,690 | 55,814,182 | ||||||
Total depreciation expense recognized for the years ended March 31, 2012, 2013 and 2014 is allocated to the following expense items: | ||||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Cost of revenues | 2,306,543 | 1,746,736 | 1,774,066 | |||||
Research and development | 362,720 | 876,166 | 727,821 | |||||
Sales and marketing | 238,776 | 726,239 | 460,870 | |||||
General and administrative | 5,611,387 | 4,754,001 | 4,863,051 | |||||
Total depreciation expense | 8,519,426 | 8,103,142 | 7,825,808 |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | |||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | |||||||||||
(6) GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||
(a) Goodwill | ||||||||||||
The change in the carrying amount of goodwill is as follows: | ||||||||||||
RMB | ||||||||||||
Balance as of April 1, 2013 | 23,422,850 | |||||||||||
Acquisition of Xing Wei Group (Note 18) | 7,589,052 | |||||||||||
Balance as of March 31, 2014 | 31,011,902 | |||||||||||
There were no changes in the carrying amount of goodwill during the years ended March 31, 2012 and 2013. | ||||||||||||
(b) Intangible Assets | ||||||||||||
The following table summarizes the Company’s intangible assets, as of March 31, 2013 and 2014. | ||||||||||||
March 31, 2013 | ||||||||||||
Weighted | ||||||||||||
Gross | Net | Average | ||||||||||
carrying | Accumulated | carrying | Amortization | |||||||||
amount | amortization | amount | Period | |||||||||
RMB | RMB | RMB | Years | |||||||||
ETS TOEIC license | 24,126,706 | (9,901,334 | ) | 14,225,372 | 10 | |||||||
Customer relationships | 1,300,000 | (442,498 | ) | 857,502 | 12 | |||||||
Total intangible assets | 25,426,706 | (10,343,832 | ) | 15,082,874 | ||||||||
March 31, 2014 | ||||||||||||
Weighted | ||||||||||||
Gross | Accumulated | Net | Average | |||||||||
carrying | amortization | carrying | Amortization | |||||||||
amount | /deduction | Impairment | amount | Period | ||||||||
RMB | RMB | RMB | RMB | Years | ||||||||
ETS TOEIC license | 24,126,706 | (12,117,249 | ) | (12,009,457 | ) | — | 10 | |||||
Customer relationships | 1,300,000 | (550,833 | ) | — | 749,167 | 12 | ||||||
Training platform | 422,700 | (35,225 | ) | — | 387,475 | 5 | ||||||
Contracts in progress (i) | 1,225,380 | (569,087 | ) | — | 656,293 | — | ||||||
Total intangible assets | 27,074,786 | (13,272,394 | ) | (12,009,457 | ) | 1,792,935 | ||||||
(i) Contracts in progress of RMB 569,087 recognized at the acquisition date were subsequently deducted from billing of RMB 735,000 upon completion of certain contracts as of March 31, 2014. The balance of RMB 656,293 will be deducted from the billing of RMB 1,911,000 upon completion of the remaining contracts. | ||||||||||||
ETS TOEIC license represents the amounts paid to Educational Testing Service (“ETS”) under a master distributor agreement for the exclusive right to market, distribute, administer and sell the Test of English for International Communication (“TOEIC”) in mainland PRC for ten years commencing from March 2009. The TOEIC distributor contract with ETS was terminated on February 28, 2014 and the Company recognized an impairment loss of RMB 12,009,457 for the year ended March 31, 2014. | ||||||||||||
Amortization expenses for intangible assets recognized as cost of revenues were RMB 2,758,838, RMB 2,514,392 and RMB 2,359,475 for the year ended March 31, 2012, 2013 and 2014, respectively. | ||||||||||||
As of March 31, 2014, the estimated amortization expense for the next five years is as follows: | ||||||||||||
March 31 | ||||||||||||
RMB | ||||||||||||
2015 | 192,873 | |||||||||||
2016 | 192,873 | |||||||||||
2017 | 192,873 | |||||||||||
2018 | 192,873 | |||||||||||
2019 | 157,648 |
ACCRUED_EXPENSES_AND_OTHER_PAY
ACCRUED EXPENSES AND OTHER PAYABLES | 12 Months Ended | |||||
Mar. 31, 2014 | ||||||
ACCRUED EXPENSES AND OTHER PAYABLES | ' | |||||
ACCRUED EXPENSES AND OTHER PAYABLES | ' | |||||
(7) ACCRUED EXPENSES AND OTHER PAYABLES | ||||||
Accrued expenses and other payables consist of the following: | ||||||
March 31, | ||||||
2013 | 2014 | |||||
RMB | RMB | |||||
Business tax, value-added tax and other taxes payable | 6,276,692 | 8,556,910 | ||||
Accrued payroll and welfare | 15,684,309 | 19,379,016 | ||||
Accrued test monitoring fees | 14,946,724 | 14,183,667 | ||||
Accrued certificates costs | 2,593,694 | 2,702,086 | ||||
Royalty fees payable | 9,721,066 | 2,622,744 | ||||
Income taxes payable | 8,802,858 | 7,488,629 | ||||
Other current liabilities | 14,165,917 | 13,833,091 | ||||
Total accrued expenses and other payables | 72,191,260 | 68,766,143 | ||||
Other current liabilities as of March 31, 2013 and 2014 mainly include accrued traveling expenses, rental expenses, meeting expense and other operating expenses, none of which individually exceed 5% of total current asset. |
DEFERRED_REVENUES
DEFERRED REVENUES | 12 Months Ended | |||||
Mar. 31, 2014 | ||||||
DEFERRED REVENUES | ' | |||||
DEFERRED REVENUES | ' | |||||
(8) DEFERRED REVENUES | ||||||
Deferred revenues consist of the following: | ||||||
March 31, | ||||||
2013 | 2014 | |||||
RMB | RMB | |||||
Testing services | 3,866,368 | 4,704,072 | ||||
Test preparation and training solutions | 376,885 | 1,210,307 | ||||
Other revenue — test-based education services | 1,131,246 | 327,735 | ||||
Other revenue — licensing fees from authorized test centers | 3,614,738 | 3,036,530 | ||||
Other revenue — others | 1,031,584 | 1,300,065 | ||||
Total deferred revenues | 10,020,821 | 10,578,709 | ||||
Representing: | ||||||
Current deferred revenues | 7,376,527 | 8,383,327 | ||||
Non-current deferred revenues | 2,644,294 | 2,195,382 |
NET_REVENUES
NET REVENUES | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
NET REVENUES | ' | |||||||
NET REVENUES | ' | |||||||
(9) NET REVENUES | ||||||||
The components of net revenues for the years ended March 31, 2012, 2013 and 2014 are as follows: | ||||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Testing services | 290,881,289 | 335,790,689 | 358,837,352 | |||||
Test preparation and training solutions | 26,996,054 | 11,343,066 | 5,949,183 | |||||
Other revenue | 34,208,217 | 19,541,740 | 19,881,843 | |||||
Net revenues | 352,085,560 | 366,675,495 | 384,668,378 | |||||
Other revenue includes net revenues from test-based educational services of RMB 12,614,294, RMB 6,778,429 and RMB 3,309,944 for the year ended March 31, 2012, 2013 and 2014, respectively. | ||||||||
Product sales of RMB 788,062, RMB 1,095,370 and RMB 569,579 for the years ended March 31, 2012, 2013 and 2014 are included in other revenue. Other revenue primarily includes test-based educational services, licensing fees from authorized test centers, test development services, test certificate services, and test administration software product sales. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
INCOME TAXES | ' | |||||||
INCOME TAXES | ' | |||||||
(10) INCOME TAXES | ||||||||
Cayman Islands and British Virgin Islands | ||||||||
Under the current laws of the Cayman Islands and the British Virgin Islands, the Group is not subject to any income tax in these jurisdictions. | ||||||||
Hong Kong | ||||||||
Xing Wei did not derive any income that is subject to Hong Kong profits tax for the taxable year ended March 31, 2014. Accordingly, no provision for Hong Kong profit tax was required. The payment of dividends by Hong Kong companies is not subject to any Hong Kong withholding tax. | ||||||||
People’s Republic of China | ||||||||
The Company’s consolidated PRC entities file separate income tax returns. | ||||||||
On March 16, 2007, the National People’s Congress passed the Enterprise Income Tax Law (“EIT Law”) which statutory income tax rate is 25% effective from January 1, 2008. According to the EIT Law, entities that qualify as “high-and-new technology enterprises eligible for key support from the State” (“HNTE”) are entitled to a preferential income tax rate of 15%. | ||||||||
The Company’s PRC entities are subject to income tax at 25%, unless otherwise specified. | ||||||||
In December 2008, ATA Testing received approval from the tax authority that it qualified as an HNTE. The certificate entitled ATA Testing to the preferential income tax rate of 15% effective retroactively from January 1, 2008 to December 31, 2010. In October 2011, ATA Testing received approval from the tax authority on its renewal as an HNTE which entitled it to the preferential income tax rate of 15% effective retroactively from January 1, 2011 to December 31, 2013. As of March 31, 2014, ATA Testing’s applicable income tax rate from January 1, 2014 onwards was 25%. | ||||||||
In December 2009, ATA Learning, ATA Online and Beijing JDX received approvals from the tax authorities that they qualified as HNTEs. The certificates entitled them to the preferential income tax rate of 15% effectively retroactively from January 1, 2009 to December 31, 2011. In May and July 2012, ATA Learning, ATA Online and Beijing JDX received approvals from the tax authorities on its renewals as HNTEs which entitled them to the preferential income tax rate of 15% effective retroactively from January 1, 2012 to December 31, 2014. ATA Learning, ATA Online and Beijing JDX’s applicable income tax rate from January 1, 2015 onwards is 25%. | ||||||||
Zhi Xing, a PRC subsidiary of Xing Wei, is subject to an income tax rate of 25%. | ||||||||
The EIT Law and its relevant regulations impose a withholding tax at 10%, unless reduced by a tax treaty or agreement, for dividends distributed by a PRC-resident enterprise to its immediate holding company outside the PRC for earnings generated beginning on January 1, 2008. Undistributed earnings generated prior to January 1, 2008 are exempt from withholding tax. As of March 31, 2013, the Company intended to indefinitely reinvest the undistributed earnings of its PRC consolidated entities and had not provided for income taxes on earnings of RMB 142,455,116 generated by its PRC consolidated entities since January 1, 2008. The unrecognized deferred income tax liability related to these earnings was RMB 14,245,512. During the year ended March 31, 2014 and as a result of management’s reassessment of the Company’s operating funding needs and future development initiatives, the Company revised the amount of undistributed earnings to be indefinitely reinvested in its PRC consolidated entities to RMB 89,611,563 as of March 31, 2014. A RMB 113,000,000 dividend distribution was made during the year ended March 31, 2014 to the holding company, for which dividend withholding tax of RMB 11,300,000 was recognized and paid during the year ended March 31, 2014. The unrecognized deferred income tax liabilities as of March 31, 2014 related to the undistributed earnings of the Company’s PRC consolidated entities was RMB 8,961,156. | ||||||||
The earnings before income taxes were generated in the following jurisdictions: | ||||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Cayman Islands and British Virgin Islands | (15,598,329 | ) | (19,373,510 | ) | (18,615,565 | ) | ||
PRC | 85,778,881 | 49,586,482 | 65,782,659 | |||||
Hong Kong | — | — | 4,803 | |||||
Earnings before income taxes | 70,180,552 | 30,212,972 | 47,171,897 | |||||
Income tax expense (benefit) recognized in the consolidated statements of comprehensive income consists of the following: | ||||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
PRC | ||||||||
Current expense | 13,189,414 | 10,226,537 | 9,312,545 | |||||
Deferred expense (benefit) | 1,149,668 | (3,221,555 | ) | (717,083 | ) | |||
Dividend withholding tax | — | — | 11,300,000 | |||||
Total income tax expense | 14,339,082 | 7,004,982 | 19,895,462 | |||||
The actual income tax expense reported in the consolidated statements of comprehensive income differs from the respective amount computed by applying the PRC statutory income tax rate of 25% for each of the years ended March 31, 2012, 2013 and 2014 to earnings before income taxes due to the following: | ||||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Computed “expected” income tax expense | 17,545,138 | 7,553,243 | 11,792,976 | |||||
Increase (decrease) in valuation allowance | (2,035,788 | ) | (735,773 | ) | 737,572 | |||
Preferential income tax rate | (8,301,350 | ) | (7,069,673 | ) | (6,208,364 | ) | ||
Entities not subject to income tax | 833,483 | 1,624,864 | 2,018,962 | |||||
Non-deductible expenses | ||||||||
Entertainment | 1,344,639 | 1,213,569 | 972,624 | |||||
Share-based compensation | 3,066,099 | 3,218,514 | 2,633,728 | |||||
Bad debt loss | 47,296 | 1,058,750 | 462,751 | |||||
Impairment of ETS TOEIC license | — | — | 3,002,364 | |||||
Changes in tax rates | 2,032,901 | 429,667 | — | |||||
Tax rate differential | (53,254 | ) | 1,977,043 | (4,213,407 | ) | |||
Dividend withholding tax | — | — | 11,300,000 | |||||
Additional deduction of research and development costs | (371,754 | ) | (2,309,671 | ) | (2,805,937 | ) | ||
Other | 231,672 | 44,449 | 202,193 | |||||
Actual income tax expense | 14,339,082 | 7,004,982 | 19,895,462 | |||||
The applicable PRC statutory tax rate is used since the Group’s taxable income is generated in the PRC. | ||||||||
The tax effects of the Group’s temporary differences that give rise to significant portions of the deferred income tax assets and liabilities are as follows. | ||||||||
March 31, | ||||||||
2013 | 2014 | |||||||
RMB | RMB | |||||||
Deferred income tax assets: | ||||||||
Tax loss carryforwards | 2,876,488 | 4,644,352 | ||||||
Property and equipment, net | 1,709,276 | 1,494,298 | ||||||
Allowance for doubtful accounts | 1,592,868 | 1,172,108 | ||||||
Write-down of inventories | 317,163 | 24,237 | ||||||
Accrued expenses and other payables | 3,796,164 | 5,572,175 | ||||||
Total gross deferred income tax assets | 10,291,959 | 12,907,170 | ||||||
Less: valuation allowance | (921,751 | ) | (2,575,187 | ) | ||||
Net deferred income tax assets | 9,370,208 | 10,331,983 | ||||||
Deferred income tax liabilities: | ||||||||
Customer relationships | 195,452 | 179,202 | ||||||
Training platform | — | 96,869 | ||||||
Contract in progress | — | 164,073 | ||||||
Total gross deferred income tax liabilities | 195,452 | 440,144 | ||||||
Net deferred income tax assets | 9,174,756 | 9,891,839 | ||||||
March 31, | ||||||||
2013 | 2014 | |||||||
RMB | RMB | |||||||
Current deferred income tax assets, included in prepaid expenses and other current assets | 7,524,161 | 8,429,138 | ||||||
Non-current deferred income tax assets, included in other assets | 1,709,276 | 1,462,701 | ||||||
Non-current deferred income tax liabilities | (58,681 | ) | — | |||||
Net deferred income tax assets | 9,174,756 | 9,891,839 | ||||||
The movements of the valuation allowance are as follows: | ||||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Balance at the beginning of the year | 3,693,312 | 1,657,524 | 921,751 | |||||
Additions from Xing Wei Group acquisition | — | — | 915,864 | |||||
Additions of valuation allowance excluding acquisition | — | — | 737,572 | |||||
Reduction of valuation allowance | (2,035,788 | ) | (735,773 | ) | — | |||
Balance at the end of the year | 1,657,524 | 921,751 | 2,575,187 | |||||
As of March 31, 2014, the valuation allowance of RMB2,575,187 was mainly related to the deferred income tax assets of PRC entities at cumulative losses. As of March 31, 2014, management believes it is more likely than not that the Group will realize the deferred income tax assets, net of the valuation allowance. The amount of the deferred income tax assets, however, considered realizable as of March 31, 2014 could be reduced in the near term if estimates of future taxable income are reduced. | ||||||||
As of March 31, 2014, the Group had tax loss carry forwards for PRC income tax purpose of RMB 18,577,405, of which RMB nil, RMB 2,237,578, RMB nil, RMB 508,730, RMB 5,921,488 and RMB 9,909,609 will expire if unused by December 31, 2014, 2015, 2016, 2017, 2018 and 2019, respectively. | ||||||||
For the years ended March 31, 2012, 2013 and 2014, the Group had no unrecognized tax benefits, and thus no related interest and penalties were recorded. Also, the Group does not expect that the amount of unrecognized tax benefits will significantly increase within the next twelve months. | ||||||||
According to the PRC Tax Administration and Collection Law, the statute of limitation is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitation is extended to five years under special circumstances where the underpayment of taxes is more than RMB 100,000. In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. The income tax return of each of the Company’s PRC consolidated entities is subject to examination by the relevant tax authorities for the calendar tax years beginning in 2009. | ||||||||
SHARE_BASED_COMPENSATION
SHARE BASED COMPENSATION | 12 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
SHARE BASED COMPENSATION | ' | |||||||||||
SHARE BASED COMPENSATION | ' | |||||||||||
(11) SHARE BASED COMPENSATION | ||||||||||||
2005 Share incentive plan | ||||||||||||
In April 2005, the Company adopted a share incentive plan (the “2005 Plan”), pursuant to which the Company is authorized to issue options to officers, employees, directors and consultants of the Group to purchase up to 2,894,000 of its common shares. In October 2007, the Company’s board of directors approved an increase in the number of shares reserved for issuance under the 2005 Plan to 3,310,300 shares. The 2005 Plan expires in ten years. Options awards provide for accelerated vesting if there is a change in control (as defined in the 2005 Plan). | ||||||||||||
2008 Share incentive plan | ||||||||||||
On January 7, 2008, the Company adopted a share incentive plan (the “2008 Plan”), pursuant to which the Company is authorized to issue options and other share-based awards to officers, employees, directors and consultants of the Group to purchase up to 336,307 of its common shares, plus, unless the board of directors determines a lesser amount, an annual increase on January 1 of each calendar year beginning in 2009 equal to the lesser of 1) one percent of the number of shares issued and outstanding on December 31 of the immediately preceding calendar year, and 2) 336,307 shares. The 2008 Plan expires in ten years. Options awards provide for accelerated vesting if there is a change in control (as defined in the 2008 Plan). As of March 31, 2014, 2,354,149 shares were reserved for issuance under the 2008 Plan. | ||||||||||||
Under both the 2005 Plan and 2008 Plan, share options are generally granted with 25% vesting on the first anniversary of the grant date and the remaining 75% vesting ratably over the following 36 months, unless a shorter or longer duration is established at the time of the option grant. Share options are granted at an exercise price equal to the fair market value of the Company’s share at the date of grant and expire 10 years from the grant date. | ||||||||||||
Under the 2008 Plan, nonvested shares are granted with a graded vesting as to 25% at the end of each year from the grant date over 4 years. | ||||||||||||
For the graded vesting share options and nonvested shares, the Company recognizes the compensation cost over the requisite service period for each separately vesting portion of the award as if the award is, in substance, multiple awards. | ||||||||||||
During the year ended March 31, 2013, the Company extended the exercise period of vested share options of two employees upon their resignation. In addition, the Company also continued the vesting of certain unvested share options and nonvested shares of these former employees. The modification resulted in additional compensation expense of RMB1,294,834 recognized in the “general and administrative expense” for the year ended March 31, 2013. | ||||||||||||
In October 2013, 1,469,460 share options were granted to an officer 25% of the options vest on the first anniversary of the grant date with the remaining 75% vest evenly over the following three years. The exercise price of these options is USD2.50 per common share. | ||||||||||||
Weighted | Weighted | Aggregate | ||||||||||
average | remaining | intrinsic | ||||||||||
Number of | exercise | contractual | value | |||||||||
shares | USD | Years | USD | |||||||||
Outstanding as of March 31, 2011 | 3,262,650 | 2.96 | ||||||||||
Granted | — | — | ||||||||||
Exercised | (27,864 | ) | 3.6 | |||||||||
Forfeited | — | — | ||||||||||
Expired | (446,444 | ) | 3.6 | |||||||||
Outstanding as ofMarch 31, 2012 | 2,788,342 | 2.85 | ||||||||||
Granted | — | — | ||||||||||
Exercised | — | — | ||||||||||
Forfeited | — | — | ||||||||||
Expired | (41,000 | ) | 3.6 | |||||||||
Outstanding as ofMarch 31, 2013 | 2,747,342 | 2.84 | ||||||||||
Granted | 1,469,460 | 2.5 | ||||||||||
Exercised | — | — | ||||||||||
Forfeited | — | — | ||||||||||
Expired | (2,135 | ) | 2.69 | |||||||||
Outstanding as ofMarch 31, 2014 | 4,214,667 | 2.72 | ||||||||||
Vested and expected to vest as of March 31, 2014 | 4,214,667 | 2.72 | 4.68 | Nil | ||||||||
Exercisable as of March 31, 2014 | 2,745,207 | 2.84 | 2.09 | Nil | ||||||||
The aggregate intrinsic value of options outstanding and exercisable at March 31, 2014, was calculated based on the closing price of the Company’s common shares on March 31, 2014. | ||||||||||||
The total intrinsic value of options exercised in the years ended March 31, 2012, 2013 and 2014 are USD 28,775, USD nil and USD nil respectively. | ||||||||||||
Information relating to options outstanding and exercisable as of March 31, 2014 is as follows: | ||||||||||||
Options outstanding as of March 31, 2014 | Options exercisable as of March 31, 2014 | |||||||||||
Exercise | Remaining | Exercise | Remaining | |||||||||
Number of | Price | Contractual | Number | Price | Contractual | |||||||
Shares | per Share | Life | of Shares | per Share | Life | |||||||
USD | Years | USD | Years | |||||||||
1,312,600 | 2.26 | 1.1 | 1,312,600 | 2.26 | 1.1 | |||||||
674,000 | 3.6 | 1.7 | 674,000 | 3.6 | 1.7 | |||||||
250,000 | 3.6 | 2.6 | 250,000 | 3.6 | 2.6 | |||||||
101,000 | 3.6 | 3.7 | 101,000 | 3.6 | 3.7 | |||||||
100,000 | 4.75 | 3.5 | 100,000 | 4.75 | 3.5 | |||||||
7,607 | 2.69 | 4.9 | 7,607 | 2.69 | 4.9 | |||||||
300,000 | 2.12 | 6 | 300,000 | 2.12 | 6 | |||||||
1,469,460 | 2.5 | 9.5 | — | 2.5 | 9.5 | |||||||
4,214,667 | 2.72 | 4.68 | 2,745,207 | 2.84 | 2.09 | |||||||
The Company calculated the fair value of the share options on the grant date using the Black-Scholes-Merton pricing valuation model. The assumptions used in the valuation model are summarized as follows: | ||||||||||||
Year Ended March 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Expected dividend yield | — | — | 0% | |||||||||
Expected volatility | — | — | 75% | |||||||||
Expected term | — | — | 6.25 | |||||||||
Risk-free interest rate (per annum) | — | — | 1.77% | |||||||||
The expected volatility was based on the historical volatilities of the Company. The expected term was related to the period of time the options are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the United States treasury yield curve in effect at the time of grant. | ||||||||||||
Compensation expense for share options is allocated to the following expense items: | ||||||||||||
Year Ended March 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
RMB | RMB | RMB | ||||||||||
Cost of revenues | — | — | — | |||||||||
Research and development | — | — | — | |||||||||
Sales and marketing | 42,914 | — | — | |||||||||
General and administrative | 547,231 | 306,659 | 3,946,384 | |||||||||
Total share based compensation expense | 590,145 | 306,659 | 3,946,384 | |||||||||
As of March 31, 2014, RMB 10,991,832 of total unrecognized compensation expense related to nonvested share options is expected to be recognized over a weighted average period of approximately 3.52 years. | ||||||||||||
Nonvested shares | ||||||||||||
A summary of the nonvested shares activities for the year ended March 31, 2012, 2013 and 2014 is presented below: | ||||||||||||
Weighted | ||||||||||||
average | ||||||||||||
Number | grant date | |||||||||||
of shares | fair value | |||||||||||
USD | ||||||||||||
Outstanding at March 31, 2011 | 306,000 | 2.949 | ||||||||||
Granted | 1,060,000 | 4.963 | ||||||||||
Vested | (116,245 | ) | 2.076 | |||||||||
Forfeited | (103,005 | ) | 4.47 | |||||||||
Outstanding at March 31, 2012 | 1,146,750 | 4.788 | ||||||||||
Granted | 100,000 | 2.015 | ||||||||||
Vested | (334,250 | ) | (4.348 | ) | ||||||||
Forfeited | (17,500 | ) | 1.904 | |||||||||
Outstanding at March 31, 2013 | 895,000 | 4.633 | ||||||||||
Granted | 280,000 | 2.145 | ||||||||||
Vested | (265,000 | ) | 4.963 | |||||||||
Forfeited | (100,000 | ) | 2.015 | |||||||||
Outstanding at March 31, 2014 | 810,000 | 3.989 | ||||||||||
The total fair value of shares vested during the years ended March 31, 2012, 2013 and 2014, was USD 527,371, USD 829,077 and USD 560,975 respectively. | ||||||||||||
In accordance with the share incentive agreement with the employees, upon the vesting of the nonvested shares, the Company may elect to repurchase certain number of vested shares at the fair market price, with the payment due employees withheld to meet the relevant minimum tax withholding requirements. For the years ended March 31, 2013 and 2014, the Company reacquired 44,564 and 51,676 vested shares upon the vesting of the nonvested shares for a consideration of RMB 913,453 and RMB 567,881 respectively to satisfy the minimum tax withholding obligation. | ||||||||||||
Compensation expense recognized for nonvested shares for the years ended March 31, 2012, 2013 and 2014 is allocated to the following expense items: | ||||||||||||
Year Ended March 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
RMB | RMB | RMB | ||||||||||
Cost of revenues | 71,691 | 21,813 | 228,854 | |||||||||
Research and development | 189,462 | 308,577 | 336,869 | |||||||||
Sales and marketing | 344,226 | 702,683 | 454,503 | |||||||||
General and administrative | 11,068,873 | 10,239,490 | 5,568,300 | |||||||||
Total share based compensation expense | 11,674,252 | 11,272,563 | 6,588,526 | |||||||||
As of March 31, 2014, RMB5,051,565 of total unrecognized compensation expense related to nonvested shares is expected to be recognized over a weighted average period of approximately 2.18 years. |
COMMON_SHARES
COMMON SHARES | 12 Months Ended |
Mar. 31, 2014 | |
COMMON SHARES | ' |
COMMON SHARES | ' |
(12) COMMON SHARES | |
The Company’s board of directors approved a share repurchase program on November 13, 2008 to repurchase up to USD5 million worth of its outstanding American Depository Shares (“ADS”) from time to time in open-market transactions. On February 12, 2010, the Company’s board of director reviewed and approved the continuation of the share repurchase program through March 31, 2011. The Company’s board of directors approved a share repurchase program on November 1, 2012 to repurchase up to USD5 million worth of its issued and outstanding ADSs in both open-market and privately negotiated transactions. On January 31, 2013, the Company’s board of director reviewed and approved the continuation of the share repurchase program through May 31, 2013. For the years ended March 31, 2012, 2013 and 2014, the Company repurchased nil, 26,440 and 10,678 common shares at a repurchase price of RMB nil, RMB 329,357 and RMB 132,528, respectively. | |
SPECIAL_CASH_DIVIDEND
SPECIAL CASH DIVIDEND | 12 Months Ended |
Mar. 31, 2014 | |
SPECIAL CASH DIVIDEND | ' |
SPECIAL CASH DIVIDEND | ' |
(13) SPECIAL CASH DIVIDEND | |
On June 1, 2011, the Company’s board of directors declared a special cash dividend of USD0.215 per common share, or USD0.43 per ADS. The total amount of cash distributed in the dividend was USD9.8 million (RMB 63,634,726) and was paid from the cash held by ATA Inc. in August 2011. | |
On August 7, 2012, the Company’s board of directors declared a special cash dividend of USD0.087 per common share, or USD0.174 per ADS. The total amount of cash distributed in the dividend was USD4.0 million (RMB 25,331,341) and was paid from the cash held by ATA Inc. in September 2012. | |
STATUTORY_RESERVES
STATUTORY RESERVES | 12 Months Ended |
Mar. 31, 2014 | |
STATUTORY RESERVES | ' |
STATUTORY RESERVES | ' |
(14) STATUTORY RESERVES | |
In accordance with the relevant laws and regulations of the PRC, the Company’s PRC consolidated entities are required to transfer 10% of their respective after tax profit, as determined in accordance with PRC accounting standards and regulations to a general reserve fund until the balance of the fund reaches 50% of the registered capital of the respective entity. The transfer to this general reserve fund must be made before distribution of dividends can be made. As of March 31, 2013 and 2014, the PRC consolidated entities had appropriated RMB 14,892,860 and RMB20,648,182, respectively, to the general reserve fund, which is restricted for distribution to the Company. | |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||
Mar. 31, 2014 | ||||
COMMITMENTS AND CONTINGENCIES | ' | |||
COMMITMENTS AND CONTINGENCIES | ' | |||
(15) COMMITMENTS AND CONTINGENCIES | ||||
Lease commitments | ||||
The Group entered into non-cancelable operating leases, primarily for office space, for initial terms of nineteen months to six years. | ||||
Minimum rent payments under operating leases are recognized on a straight-line basis over the term of the lease, including any periods of free rent. | ||||
Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of March 31, 2014 are: | ||||
Minimum | ||||
Lease Payments | ||||
Amount | ||||
RMB | ||||
Year ended March 31: | ||||
2015 | 13,098,314 | |||
2016 | 13,900,657 | |||
2017 | 9,496,776 | |||
2018 | 9,971,305 | |||
2019 | 10,467,905 | |||
Thereafter | 10,986,576 | |||
67,921,533 | ||||
Rental expense for operating leases (except leases with a term of one month or less that are not renewed) for the years ended March 31, 2012, 2013 and 2014 were RMB 5,159,138, RMB 6,517,907 and RMB 7,848,918 respectively. | ||||
OPERATING_LEASES
OPERATING LEASES | 12 Months Ended | |||
Mar. 31, 2014 | ||||
OPERATING LEASES | ' | |||
OPERATING LEASES | ' | |||
(16) OPERATING LEASES | ||||
The Group leased one floor of its building on March 1, 2014. The operating lease expires during the next six years. | ||||
Minimum rentals under operating leases are recognized on a straight-line basis over the term of the lease, including any periods of free rent. | ||||
Property on Operating Leases | ||||
March 31, 2014 | ||||
RMB | ||||
Building | 26,251,157 | |||
Less: Accumulated depreciation | (4,156,433 | ) | ||
22,094,724 | ||||
Rentals under Operating Leases | ||||
Future minimum rentals under non-cancelable operating leases as of March 31, 2014 are: | ||||
Minimum | ||||
Rentals Amount | ||||
RMB | ||||
Year ended March 31: | ||||
2015 | 2,753,079 | |||
2016 | 3,308,825 | |||
2017 | 3,475,825 | |||
2018 | 3,647,360 | |||
2019 | 3,830,195 | |||
Thereafter | 3,663,927 | |||
20,679,211 |
EARNINGS_PER_COMMON_SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
EARNINGS PER COMMON SHARE | ' | |||||||
EARNINGS PER COMMON SHARE | ' | |||||||
(17) EARNINGS PER COMMON SHARE | ||||||||
Basic and diluted earnings per common share are calculated as follows: | ||||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Numerator: | ||||||||
Net earnings | 55,841,470 | 23,207,990 | 27,276,435 | |||||
Less: Dividends paid to participating securities | (1,476,269 | ) | (525,049 | ) | — | |||
Net earnings attributable to participating securities | — | — | (509,201 | ) | ||||
Net earnings available to common shareholders | 54,365,201 | 22,682,941 | 26,767,234 | |||||
Denominator: | ||||||||
Denominator for basic earnings per share: | ||||||||
Weighted average common shares outstanding | 44,713,418 | 44,967,823 | 45,227,159 | |||||
Plus: Incremental shares issuable upon exercise of share options | 951,469 | 147,794 | 4,396 | |||||
Denominator for diluted earnings per share | 45,664,887 | 45,115,617 | 45,231,555 | |||||
Basic earnings per common share | 1.22 | 0.5 | 0.59 | |||||
Diluted earnings per common share | 1.19 | 0.5 | 0.59 | |||||
The following table summarizes potential common shares outstanding excluded from the calculation of diluted earnings per share for the years ended March 31, 2012, 2013 and 2014, because their effect is anti-dilutive: | ||||||||
Year ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
Shares issuable under share options | 100,000 | 1,134,742 | 3,914,667 |
ACQUISITION
ACQUISITION | 12 Months Ended | |||||
Mar. 31, 2014 | ||||||
ACQUISITION | ' | |||||
ACQUISITION | ' | |||||
(18) ACQUISITION | ||||||
On October 31, 2013, ATA Inc. acquired the entire equity interest of Xing Wei and its wholly owned subsidiary Zhi Xing (collectively the “Xing Wei Group”) for cash consideration of USD 3.19 million (equivalent RMB 19,612,120). Xing Wei Group provides training solutions as well as mobile training platforms for corporations in the PRC. The Company expected the acquisition will provide the Company a more comprehensive set of service offerings, which will enable it to deepen its existing client relationships in the PRC. | ||||||
The Company paid the selling shareholder of Xing Wei Group USD 3.19 million in cash on November 1, 2013. | ||||||
This acquisition was accounted for under the acquisition method and resulted in Xing Wei Group becoming consolidated subsidiaries of the Company. | ||||||
The acquired business contributed net revenue of RMB 305,607 and net loss of RMB 1,702,306 to the Company for the period from October 31, 2013 to March 31, 2014. The following unaudited pro forma summary presents consolidated information of the Company as if the business combination had occurred on April 1, 2012: | ||||||
Pro forma year | Pro forma year | |||||
ended March 31, | ended March 31, | |||||
2013(Unaudited) | 2014(Unaudited) | |||||
RMB | RMB | |||||
Net revenue | 367,598,801 | 386,386,238 | ||||
Net income | 20,640,931 | 23,342,382 | ||||
The Company had no material, nonrecurring pro forma adjustment directly attributable to the business combination included in the reported pro forma net revenue and net income. | ||||||
Acquisition related costs of RMB676,237 were included in the general and administration expenses in the Company’s consolidated statement of comprehensive income for the year ended March 31, 2014. | ||||||
The following table summarizes the consideration paid to acquire Xing Wei Group and the amounts of identifiable assets acquired and liabilities assumed at the acquisition date: | ||||||
October 31, 2013 | ||||||
RMB | ||||||
Fair value of consideration transferred: | ||||||
Cash | 19,612,120 | |||||
Fair values of identifiable assets acquired and liabilities assumed: | ||||||
Cash | 9,785,414 | |||||
Accounts receivable and other current assets | 710,300 | |||||
Contracts in progress | 1,225,380 | |||||
Property and equipment | 165,168 | |||||
Training platform | 422,700 | |||||
Accrued expenses and other current liabilities | (285,894 | ) | ||||
Total identifiable net assets | 12,023,068 | |||||
Goodwill | 7,589,052 | |||||
19,612,120 | ||||||
The goodwill represents the workforce of the acquired business and synergies expected to arise after the Company’s acquisition of Xing Wei Group and expanding the product offering of testing services. All of the goodwill was assigned to the enterprise level. The goodwill is not expected to be deductible for income tax purpose. |
ATA_INC_Parent_Company
ATA INC. ("Parent Company") | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
ATA INC. ("Parent Company") | ' | |||||||||
ATA INC. ("Parent Company") | ' | |||||||||
(19) ATA INC. (“Parent Company”) | ||||||||||
The following presents condensed financial information of the Parent Company only. | ||||||||||
Condensed Balance Sheets | ||||||||||
March 31, | ||||||||||
2013 | 2014 | 2014 | ||||||||
RMB | RMB | USD | ||||||||
Cash | 41,744,636 | 9,327,438 | 1,500,457 | |||||||
Prepaid expenses and other current assets | 464,873 | 174,575 | 28,083 | |||||||
Investments in subsidiaries | 334,415,959 | 403,522,684 | 64,912,599 | |||||||
Total assets | 376,625,468 | 413,024,697 | 66,441,139 | |||||||
Accrued expenses and other current liabilities | 1,077,749 | 1,132,825 | 182,231 | |||||||
Total liabilities | 1,077,749 | 1,132,825 | 182,231 | |||||||
Common shares | 3,461,060 | 3,474,894 | 558,988 | |||||||
Treasury shares | (329,357 | ) | (1,029,766 | ) | (165,653 | ) | ||||
Additional paid in capital | 427,443,700 | 437,964,776 | 70,453,120 | |||||||
Accumulated other comprehensive loss | (26,379,146 | ) | (27,145,929 | ) | (4,366,825 | ) | ||||
Accumulated deficit | (28,648,538 | ) | (1,372,103 | ) | (220,722 | ) | ||||
Total shareholders’ equity | 375,547,719 | 411,891,872 | 66,258,908 | |||||||
Total liabilities and shareholders’ equity | 376,625,468 | 413,024,697 | 66,441,139 | |||||||
Condensed Statements ofComprehensive Income | ||||||||||
Year Ended March 31, | ||||||||||
2012 | 2013 | 2014 | 2014 | |||||||
RMB | RMB | RMB | USD | |||||||
Operating expenses | (7,487,523 | ) | (7,567,474 | ) | (5,415,249 | ) | (871,124 | ) | ||
Investment income | 60,175,402 | 30,685,632 | 32,612,787 | 5,246,250 | ||||||
Interest income | 377,333 | 112,656 | 40,889 | 6,578 | ||||||
Foreign currency exchange gains (losses), net | 2,776,258 | (22,824 | ) | 38,008 | 6,113 | |||||
Earnings before income taxes | 55,841,470 | 23,207,990 | 27,276,435 | 4,387,817 | ||||||
Income tax expense | — | — | — | — | ||||||
Net income | 55,841,470 | 23,207,990 | 27,276,435 | 4,387,817 | ||||||
Foreign currency translation adjustment, net of nil income taxes | (3,787,210 | ) | (374,747 | ) | (766,783 | ) | (123,348 | ) | ||
Comprehensive income | 52,054,260 | 22,833,243 | 26,509,652 | 4,264,469 | ||||||
Condensed Statements of Cash Flows | ||||||||||
Year Ended March 31, | ||||||||||
2012 | 2013 | 2014 | 2014 | |||||||
RMB | RMB | RMB | USD | |||||||
Net cash used in operating activities | (4,529,639 | ) | (6,675,424 | ) | (4,994,557 | ) | (803,449 | ) | ||
Cash flows from investing activities : | ||||||||||
Collection from (payment to) subsidiaries | 1,140,127 | 26,836,132 | (6,911,210 | ) | (1,111,770 | ) | ||||
Payment for XingWei acquisition | — | — | (19,612,120 | ) | (3,154,900 | ) | ||||
Net cash provided by investing activities | 1,140,127 | 26,836,132 | (26,523,330 | ) | (4,266,670 | ) | ||||
Cash flows from financing activities : | ||||||||||
Proceeds from exercise of share options | 631,844 | — | — | — | ||||||
Cash paid for employee individual income tax of net-settlement of vested shares | — | (913,453 | ) | — | — | |||||
Cash paid for repurchase of common shares | — | (329,357 | ) | (132,528 | ) | (21,319 | ) | |||
Collection of receivable from shareholders | 1,035,796 | — | — | — | ||||||
Special cash dividend | (63,634,726 | ) | (25,331,341 | ) | — | — | ||||
Net cash used in financing activities | (61,967,086 | ) | (26,574,151 | ) | (132,528 | ) | (21,319 | ) | ||
Effect of foreign exchange rate changes on cash | (2,929,270 | ) | (374,747 | ) | (766,783 | ) | (123,348 | ) | ||
Net decrease in cash | (68,285,868 | ) | (6,788,190 | ) | (32,417,198 | ) | (5,214,786 | ) | ||
Cash at beginning of year | 116,818,694 | 48,532,826 | 41,744,636 | 6,715,243 | ||||||
Cash at end of year | 48,532,826 | 41,744,636 | 9,327,438 | 1,500,457 |
SUBSEQUENT_EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Mar. 31, 2014 | |
SUBSEQUENT EVENT | ' |
SUBSEQUENT EVENT | ' |
(20) SUBSEQUENT EVENT | |
On May 30, 2014, the Company announced that its Board of Directors has declared a special cash dividend of USD0.205 per common share, or USD0.41 per ADS. The total amount of cash distributed in the dividend is expected to be approximately USD10 million, which will be paid on or around July 31, 2014, to all shareholders of record as of the close of business on June 30, 2014. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||
Principles of consolidation | ' | |||||||
(a) Principles of consolidation | ||||||||
The consolidated financial statements include the financial statements of the Company, its subsidiaries and its VIE for which the Group is the primary beneficiary. All significant intercompany balances and transactions have been eliminated upon consolidation. | ||||||||
Basis of presentation | ' | |||||||
(b) Basis of presentation | ||||||||
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | ||||||||
Use of estimates | ' | |||||||
(c) Use of estimates | ||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management of the Group to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include the determination of primary beneficiary of VIE, the fair values of assets acquired and liabilities assumed in business combination, the fair values of share-based payments, the plans for indefinite reinvestment of undistributed earnings of the PRC subsidiaries in PRC, the collectibility of accounts receivable, the realizability of deferred income tax assets, the estimate for useful lives and residual values of long-lived assets, the recoverability of the carrying values of long-lived assets and goodwill, realizable value of inventories and with respect to revenue recognition, the expected service period for course programs and the expected licensing period for perpetual licenses. Actual results could differ from those estimates. | ||||||||
Foreign currency translation and risks | ' | |||||||
(d) Foreign currency translation and risks | ||||||||
The accompanying consolidated financial statements have been expressed in RMB, the Company’s reporting currency. | ||||||||
The Company, ATA BVI and Xing Wei’s functional currency is the USD. The functional currency of the Company’s PRC subsidiaries and VIE is the RMB. | ||||||||
Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting foreign exchange gains and losses are included in the consolidated statements of comprehensive income in the line item “Foreign currency exchange gains(losses), net.” | ||||||||
Assets and liabilities of the Company, ATA BVI and Xing Wei are translated into RMB using the applicable exchange rate at each balance sheet date. Revenues and expenses are translated into RMB at average rates prevailing during the year. The resulting foreign currency translation adjustments are recognized as a separate component of accumulated other comprehensive loss within equity. | ||||||||
For the convenience of the readers, the 2014 RMB amounts included in the accompanying consolidated financial statements have been translated into USD at the rate of USD1.00 =MB6.2164, the noon buying rate in New York cable transfers of RMB per USD as set forth in the H.10 weekly statistical release of Federal Reserve Board, as of March 31, 2014. No representation is made that the RMB amounts could have been, or could be, converted into USD at that rate or at any other rate on March 31, 2014. | ||||||||
Commitments and contingencies | ' | |||||||
(e) Commitments and contingencies | ||||||||
In the normal course of business, the Group is subject to contingencies, such as legal proceedings and claims that cover a wide range of matters. Liabilities for such contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. | ||||||||
Fair value measurements | ' | |||||||
(f) Fair value measurements | ||||||||
The Group utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Group determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: | ||||||||
· Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. | ||||||||
· Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. | ||||||||
· Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. | ||||||||
The Group did not have any nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis as of March 31, 2013. One of the Group’s intangible assets was measured at fair value of RMB nil as of March 31, 2014 (note 6(b)). | ||||||||
The Company’s financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, advances to third parties, employees and suppliers, which are included in the prepaid expenses and other current assets, and accrued expenses and other payables, all of which have a carrying amount that approximate fair value because of the short maturity of these instruments. | ||||||||
Revenue recognition | ' | |||||||
(g) Revenue recognition | ||||||||
The Group’s revenues are principally derived from the provision of testing services, test-based educational services and test preparation solutions. The Group recognizes revenues when all of the following have occurred: | ||||||||
· persuasive evidence of an agreement with the customer exists; | ||||||||
· services have been performed and/or delivery of goods has occurred; | ||||||||
· the fees for services performed and/or price of goods sold are fixed or determinable; and | ||||||||
· collectibility of the fees and/or sales proceeds is reasonably assured. | ||||||||
The application of the above criteria for revenue recognition for each type of service or product is as follows: | ||||||||
i) Testing services | ||||||||
Fees for testing services are recognized upon the completion of the exam by the test taker since the Group has no significant future involvement after the completion of the examination. Fees received in advance of test delivery are recorded as deferred revenue. | ||||||||
ii) Test preparation and training solutions | ||||||||
The Group derives test preparation and training solutions revenues from online test preparation and training service and online training platform development and maintenance service. | ||||||||
a) Online test preparation and training service fees | ||||||||
The Group sells online training to end users directly or through distributors on a consignment basis. The online training entitles end users to access online test preparation and training services during a specified service period, which normally ranges between 90 to 365 days from activation. | ||||||||
Online training revenue is recognized on a straight-line basis over the service period commencing at the point of time the online training is activated. If the online training sold to end users is not activated before the expiration date, related online service revenue is recognized on the expiration date. For online training granted with fixed online hours, the Group compares the revenue recognized to the actual completion status, and makes any revenue adjustments to reflect the actual completion status. | ||||||||
The Group is not contractually obligated to accept, nor has the Group historically accepted, returns from end users. | ||||||||
b) Online training platform development and maintenance service fees | ||||||||
The Group develops online training platform based on customer’s requirements and provides maintenance services during the contract period. The online training platform enables end users to participate online training courses. | ||||||||
Fees from online training platform development and maintenance service are recognized, when the platform has been delivered, collectibility is reasonably assured, and on a straight-line basis over the contractual period. | ||||||||
iii) Other revenue | ||||||||
a) Test-based educational services | ||||||||
Fees from educational institutions for degree major course programs are recognized, when collectibility is reasonably assured, on a straight-line basis over the contractual period , which typically starts in the month of September and ends in the month of June or August of the following year, or 10 to 12 months. | ||||||||
Fees from educational institutions for single course programs are recognized on a straight-line basis over the expected service period or the contractual period, whichever is longer. At the end of each reporting period upon the closing of the Group’s financial records, the Group compares the revenue recognized at the onset of the contracts to the actual completion status of each contract, on a contract by contract basis, and makes any revenue adjustments to reflect the actual completion status. | ||||||||
Fees are not refundable if the student fails to complete one or more of the courses or the entire degree major course programs or fails any of the exams. | ||||||||
b) Licensing fees from authorized test centers | ||||||||
The Group receives a fixed fee for a perpetual license or an initial fee plus continuing annual fees for renewable annual licenses that provide authorized test centers the right to use the Group’s brand name and E-testing platform. | ||||||||
The Group is obligated to provide ongoing technical support and unspecific system upgrades; and to provide training to authorized test centers’ staff. Initial fees for renewable annual license and fixed fees for perpetual licenses are recognized on a straight-line basis over the expected licensing period of 10 years, which is the period the Group is expected to have continuing involvement with the authorized test centers. Management estimates the expected licensing period based on its historical retention experience, factoring in the expected level of future competition, the risk of technological obsolescence, technological innovation, and the expected changes in the education training environment. | ||||||||
c) Test development services | ||||||||
Test development service fees are recognized upon the acceptance of the developed tests by the customer. The period to develop the tests is short, generally within two to six months from commencement of development. | ||||||||
d) Test administration software products | ||||||||
Test administration software products sales are recognized upon delivery and when collectibility is reasonably assured. | ||||||||
iv) Business tax and value added tax (“VAT”) | ||||||||
Revenue is recognized net of business taxes at the rate of 5% of gross revenues or VAT at the rate of 3% or 6% of gross revenues. Business tax and VAT collected from customers, net of VAT paid for purchases, is recorded as a liability in the consolidated balance sheets until paid to the tax authorities. | ||||||||
Cost of revenues | ' | |||||||
(h) Cost of revenues | ||||||||
Cost of revenues consists primarily of cost of test monitoring, royalty fees for IT vendors and test sponsor licensing arrangements, cost of inventories, payroll compensation, technical support, and other related costs, which are directly attributable to the rendering of services and delivery of goods. | ||||||||
The test monitoring costs are recognized upon completion of examinations based on actual number of test takers. Royalty fees are recognized as cost of revenues based on actual usage according to contract provisions. | ||||||||
The test monitoring costs and royalty fees for the years ended March 31, 2012, 2013 and 2014 are as follows: | ||||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Test monitoring costs | 88,232,358 | 129,127,028 | 124,427,159 | |||||
Royalty fees | 22,032,654 | 15,594,990 | 14,850,125 | |||||
Research and development costs | ' | |||||||
(i) Research and development costs | ||||||||
Research and development costs primarily consist of software developed for internal use and software developed for sale. | ||||||||
i) Software developed for internal use | ||||||||
The Group expenses all costs that are incurred in connection with the planning and implementation phases of the development of software. Costs incurred in the development phase are capitalized and amortized over the estimated product life. No costs were capitalized for any of the periods presented. | ||||||||
ii) Software developed for sale | ||||||||
Costs incurred internally in researching and developing a computer software product are charged to expense as research and development costs prior to technological feasibility being established for the product. Once technological feasibility is established, all computer software costs are capitalized until the product is available for general release to customers. Technological feasibility is established upon completion of all the activities that are necessary to substantiate that the computer software product can be produced in accordance with its design specifications, including functions, features, and technical performance requirements. No costs were capitalized for any of periods presented. | ||||||||
Income taxes | ' | |||||||
(j) Income taxes | ||||||||
Income taxes are accounted for under the asset and liability method. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax loss carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates or tax status is recognized in income in the period that includes the enactment date or the date of change in tax status. A valuation allowance is provided to reduce the amount of deferred income tax assets if it is considered more likely than not that some portion or all of the deferred income tax assets will not be realized. | ||||||||
The Group recognizes in the consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. | ||||||||
A deferred tax liability is not recognized for the excess of the Company’s financial statement carrying amount over the tax basis of its investment in a foreign subsidiary, if there exists specific plans for reinvestment of undistributed earnings of a subsidiary which demonstrate that remittance of the earnings will be postponed indefinitely. | ||||||||
The Group’s accounting policy is to accrue interest and penalties related to unrecognized tax benefits, if and when required, as interest expense and a component of general and administrative expenses, respectively in the consolidated statements of comprehensive income. | ||||||||
Share-based payment | ' | |||||||
(k) Share-based payment | ||||||||
The Group measures the cost of employee share options and nonvested shares based on the grant date fair value of the award and recognizes that cost over the period during which an employee is required to provide services in exchange for the award, which generally is the vesting period. For the graded vesting share options and nonvested shares, the Company recognizes the compensation cost over the requisite service period for each separately vesting portion of the award as if the award is, in substance, multiple awards. When no future services are required to be performed by the employee in exchange for an award of equity instruments, and if such award does not contain a performance or market condition, the cost of the award is expensed on the grant date. When there is a modification of the terms and conditions of an award of equity instruments, the Company measures the pre-modification and post-modification fair value of the equity instruments as of the modification date and recognizes the incremental value as compensation cost over the remaining service period. | ||||||||
When there is a change in the grantee status from an employee to a non-employee, if grantee retains the awards on a change in status and continues to provide substantive services to the Group, the change in status results in a new measurement date for the unvested awards with compensation costs measured as if the awards were newly issued to the grantee on the date of the change in status. If grantee retains the awards on a change in status and is not required to provide substantive services to the grantor subsequent to that change in status, the change in status is, in substance, an acceleration of the vesting of the arrangement. | ||||||||
Cash and cash equivalent | ' | |||||||
(l) Cash and cash equivalent | ||||||||
Cash and cash equivalent consists of cash on hand, cash in banks and highly liquid investments with maturity less than three month. | ||||||||
Restricted cash | ' | |||||||
(m) Restricted cash | ||||||||
Restricted cash is restricted as to usage based on contracts entered into with third parties. The restricted cash balance was nil and RMB 2,700,000 (US$434,335) as of March 31, 2013 and 2014. | ||||||||
Accounts receivable | ' | |||||||
(n) Accounts receivable | ||||||||
Accounts receivable include amounts billed at the invoiced amount. | ||||||||
The allowance for doubtful accounts is the management’s best estimate of the amount of probable credit losses resulting from the inability of the Group’s customers to make required payments. The allowance for doubtful accounts is based on a review of specifically identified accounts, aging data and historical collection pattern. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group does not have any off-balance-sheet credit exposure related to its customers. | ||||||||
Property and equipment, net | ' | |||||||
(o) Property and equipment, net | ||||||||
Property and equipment is stated at historical cost. | ||||||||
Depreciation is recognized over the following useful lives on the straight-line method, taking into consideration the assets’ estimated salvage value: | ||||||||
Building | 30 years | |||||||
Computer equipment | 3 to 5 years | |||||||
Furniture, fixtures and office equipment | 5 years | |||||||
Software | 3 to 5 years | |||||||
Motor vehicles | 5 years | |||||||
Leasehold improvements | the shorter of the lease terms or 5 years | |||||||
Intangible assets | ' | |||||||
(p) Intangible assets | ||||||||
Intangible assets acquired are initially recognized and measured at fair value. Intangible assets other than contracts in progress are amortized on a straight-line basis over their respective estimated useful lives, which range from 5 to 12 years. | ||||||||
Contracts in progress acquired in a business combination are subsequently accounted as a reduction of billings upon completion of contracts. | ||||||||
The Company has no intangible assets with indefinite useful lives. | ||||||||
Impairment of long-lived assets, excluding goodwill | ' | |||||||
(q) Impairment of long-lived assets, excluding goodwill | ||||||||
Long-lived assets, such as property and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. The Company recognized an impairment loss of intangible assets of Nil, Nil and RMB 12,009,457 for the years ended March 31, 2012, 2013 and 2014, respectively. | ||||||||
Goodwill | ' | |||||||
(r) Goodwill | ||||||||
Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is reviewed for impairment at least annually. In September 2011, the FASB issued ASU 2011-08, Testing Goodwill for Impairment, which provides an entity the option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount prior to performing the two-step goodwill impairment test. If this is the case, the two-step goodwill impairment test is required. If it is more-likely-than-not that the fair value of a reporting is greater than its carrying amount, the two-step goodwill impairment test is not required. | ||||||||
If the two-step goodwill impairment test is required, first, the fair value of the reporting unit is compared with its carrying amount (including goodwill). If the fair value of the reporting unit is less than its carrying amount, an indication of goodwill impairment exists for the reporting unit and the entity must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying amount, step two does not need to be performed. | ||||||||
The Company performs its annual impairment review of goodwill at March 31, and when a triggering event occurs between annual impairment tests. No impairment loss was recorded for any of the periods presented. | ||||||||
Employee benefit plans | ' | |||||||
(s) Employee benefit plans | ||||||||
As stipulated by the regulations of the PRC, the Company’s PRC subsidiaries are required to contribute to various defined contribution plans, organized by municipal and provincial governments on behalf of their employees. The contributions to these plans are based on certain percentages of the employee’s standard salary base as determined by the local Social Security Bureau. The Group has no other obligation for the payment of employee benefits associated with these plans beyond the annual contributions described above. | ||||||||
Employee benefit expenses recognized under these plans for the years ended March 31, 2012, 2013 and 2014 are allocated to the following expense items: | ||||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Cost of revenues | 3,847,873 | 4,898,098 | 5,375,566 | |||||
Research and development | 3,694,142 | 4,214,374 | 4,960,632 | |||||
Sales and marketing | 3,551,100 | 5,269,923 | 3,511,656 | |||||
General and administrative | 2,206,793 | 2,608,307 | 2,568,027 | |||||
Total expense due to employee benefit plans | 13,299,908 | 16,990,702 | 16,415,881 | |||||
Earnings per share | ' | |||||||
(t) Earnings per share | ||||||||
Basic earnings per share is computed by dividing net earnings by the weighted average number of common shares outstanding during the year using the two-class method. Under the two-class method, net income is allocated between common shares and other participating securities based on their participating rights in undistributed earnings. The Company’s nonvested shares relating to the share-based awards under the share incentive plan were considered participating securities since the holders of these securities have non-forfeitable rights to cash dividends. | ||||||||
Diluted earnings per share is calculated by dividing net earnings adjusted for the effect of dilutive common equivalent shares, if any, by the weighted average number of common and dilutive common equivalent shares outstanding during the year. Common equivalent shares consist of common shares issuable upon the exercise of outstanding share options (using the treasury stock method). Common equivalent shares in the diluted earnings per share computation are excluded to the effect that they would be anti-dilutive. In calculating the diluted earnings per share, the undistributed earnings are not reallocated to the participating securities and the common and dilutive common equivalent shares. | ||||||||
Segment reporting | ' | |||||||
(u) Segment reporting | ||||||||
The Group has one operating segment, testing and training services. Substantially all of the Group’s operations and customers are located in the PRC. Consequently, no geographic information is presented. | ||||||||
Variable Interest Entity ("VIE") | ' | |||||||
(v) Variable Interest Entity (“VIE”) | ||||||||
PRC regulations prohibit direct foreign ownership of business entities that engage in internet content provision (“ICP’’) services in the PRC. The Company and its subsidiaries are foreign owned business entities under the PRC law and accordingly are prohibited from providing ICP services in the PRC, including having ownership of entities engaged in providing such services. ATA Online provides ICP online test preparation services in the PRC. | ||||||||
The Group has no legal ownership interest in ATA Online. The legal ownership interests of ATA Online are held by Mr. Kevin Xiaofeng Ma, the Company’s co-founder and chairman and Mr. Walter Lin Wang, the Company’s co-founder and director. | ||||||||
A series of contractual agreements, including loan agreements, a call option and cooperation agreement, an equity pledge agreement, a technical support agreement, a strategic consulting service agreement and a power of attorney (collectively, the “VIE Agreements”) were entered among ATA BVI, ATA Learning, ATA Online, Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang. As a result of the VIE Agreements and as described below, the financial statements of ATA Online are consolidated in the Company’s consolidated financial statements. | ||||||||
ATA Online is determined to be a VIE because although Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang are the equity holders of ATA Online, (i) their equity investment of RMB10 million in ATA Online was financed by the Group and (ii) they do not participate in any profit or loss of ATA Online. | ||||||||
Although the Group does not have an equity investment in ATA Online, the Group has other variable interests in ATA Online through, among others, (i) the Group’s subordinated loans to Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang (used by them to finance their equity investment in ATA Online) and other subordinated loans to ATA Online, (ii) the Group’s right, under the loan agreement, to receive all the dividends declared by ATA Online through its equity holders and (iii) the Group’s exclusive purchase option to acquire (or to have the Group’s designee acquire) 100% of the equity interest or assets in ATA Online for a consideration equal to the loans provided by the Group to Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang, to the extent permitted under PRC law. As a result of these variable interests, the Group has the obligation to absorb the expected losses and the right to receive expected residual returns of ATA Online. | ||||||||
Through the VIE Agreements, the Group has a controlling financial interest in ATA Online because the Group (i) has the power to direct activities of ATA Online that most significantly impact the economic performance of ATA Online; and (ii) the obligation to absorb the expected losses and the right to receive expected residual return of ATA Online that could potentially be significant to ATA Online. | ||||||||
Accordingly, the financial statements of ATA Online are consolidated in the Company’s consolidated financial statements. All of the equity (net assets) and net incomes or losses of ATA Online are attributed to the Company; therefore, non-controlling interest in ATA Online is not presented in the Company’s consolidated financial statements. | ||||||||
The key terms of these VIE Agreements are as follows: | ||||||||
Loan agreements: ATA BVI lent to ATA Online’s equity holders, Mr. Kevin Xiaofeng Ma, and Mr. Walter Lin Wang, interest free loans in the amount of RMB10 million for the sole purpose of investing in ATA Online as ATA Online’s registered capital. The equity holders of ATA Online can only repay the loans by transferring all of their legal ownership interest in ATA Online to ATA BVI or to a third party designated by ATA BVI. The equity holders of ATA Online are required to pay to ATA BVI all dividend received from ATA Online. The initial terms of the loans are ten years, which may be extended upon the agreement of ATA BVI and ATA Online’s equity holders. The approval of ATA Online is not required for the renewal of the loan agreements nor can ATA Online terminate the loan agreement during the contract term. ATA BVI lent RMB 1 million on October 27, 2006 and RMB 9 million on July 7, 2009. As of March 31, 2014, the remaining terms of the loan agreements are 2.6 years and 5.3 years for the loans of RMB 1 million and RMB 9 million, respectively, assuming no renewal of the agreement. | ||||||||
Technical support agreement: ATA Learning has the exclusive right to provide technical support services to ATA Online. ATA Online pays a quarterly service fee to ATA Learning. The service fees are mutually agreed by both parties, and are determined based on certain objective criteria such as the actual services required by ATA Online and the actual labor costs, as determined by the number of days and personnel involved, incurred by ATA Learning for providing the services during the relevant period. The term of this agreement is ten years, automatically renewable for successive one year terms unless ATA Learning notifies ATA Online of its intention not to renew 30 days before the relevant term expires. ATA Online may not terminate this agreement during its term or upon its expiration. The agreement was entered into on October 27, 2006 with a remaining term of 2.6 years as of March 31, 2014, assuming no renewal of the agreement. | ||||||||
Strategic consulting service agreement: ATA Learning provides ATA Online with strategic consulting and related services to ATA Online. The fees for these services are determined by ATA Learning and calculated monthly but paid quarterly based on actual time spent providing the services. ATA Learning has the right to adjust the fees payable by ATA Online in accordance with its performance. The term of this agreement is twenty years, automatically renewable for successive one year terms unless ATA Learning notifies ATA Online of its intention not to renew 30 days before the relevant term expires. ATA Online can only terminate this agreement if ATA Learning fails to perform its obligation under this agreement. The agreement was entered into on October 27, 2006 with a remaining term of 12.6 years as of March 31, 2014, assuming no renewal of the agreement. | ||||||||
For the years ended March 31, 2012, 2013 and 2014, the Company billed RMB nil, RMB 12.6 million and RMB 8.0 million to ATA Online based on the technical support agreement and strategic consulting service agreement. For the years ended March 31, 2012, 2013 and 2014, RMB nil, RMB 12.6 million and RMB nil was collected, respectively. | ||||||||
Call option and cooperation agreement: Through the call option and cooperation agreement entered into among ATA BVI, ATA Online and its equity holders, ATA BVI or any party designated by ATA BVI, has an exclusive purchase option to acquire the equity interest in ATA Online from its equity holders or acquire ATA Online’s assets at any time when permitted by applicable Chinese laws and regulations. The proceeds from the exercise of the call option will be applied to repay the loans under the loan agreements described above. Further, without ATA BVI’s prior written consent, ATA Online or its equity holders cannot sell, assign, mortgage or dispose any of ATA Online’s assets or operation, cannot enter into any transaction which may materially affect ATA Online’s assets, liability, operation, equity or other legal rights, and cannot distribute any dividend to its equity holders. ATA BVI is also obligated to provide financial support to ATA Online’s operation to which ATA BVI has no recourse right if ATA Online cannot repay such financing due to its losses. This agreement has an indefinite term and can only be terminated with the unanimous consent of all parties, except that ATA BVI may terminate this agreement with 30 days prior notice to the other parties. | ||||||||
Equity pledge agreement: To secure the payment obligations of ATA Online under the technical support agreement and the strategic consulting service agreement described above, ATA Online’s equity holders have pledged to ATA Learning their entire equity ownership interests in ATA Online. Under this agreement, equity holders of ATA Online may not transfer the pledged equity interest without ATA Learning’s prior written consent. This agreement will also be binding upon successors of the pledgor and transferees of the pledged equity interest. The term of the pledge is the same as the term of the strategic consulting service agreement. ATA Online may terminate this agreement upon the completion of its contractual obligations under the technical support agreement and the strategic consulting service agreement as described above. As of March 31, 2014, the remaining term of this agreement is 12.6 years, assuming no renewal of the strategic consulting service agreement. | ||||||||
Power of attorney: Each of Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang signed a power of attorney, on March 27, 2013 and April 3, 2013 respectively, with ATA Learning to exclusively assign their rights as an shareholder of ATA Online to ATA Learning, including but not limited to voting right and right to appoint director and executive management of ATA Online. The assignment of the shareholder’s rights is legally binding, irrevocable. The agreement is retrospectively effective when the call option and cooperation agreement and equity pledge agreement were effective and remains effective as long as the call option and cooperation agreement and equity pledge agreement are effective. | ||||||||
Risks and uncertainties of the VIE Agreements: The Company relies on the VIE Agreements to operate and control ATA Online. However, these contractual arrangements may not be as effective as direct equity ownership in providing the Company with control over ATA Online. Any failure by ATA Online or its equity holders to perform their obligations under the VIE Agreements would have a material adverse effect on the financial position and financial performance of the Company. All the VIE Agreements are governed by PRC law and provide for the resolution of disputes through arbitration in the PRC. Accordingly, these contracts would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. The legal system in the PRC is not as developed as some other jurisdictions, such as the United States. As a result, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements. In addition, if the legal structure and the VIE Agreements were found to be in violation of any existing or future PRC laws and regulations, the Company may be subject to fines or other legal or administrative sanctions. | ||||||||
In the opinion of management, based on the legal opinion obtained from the Company’s PRC legal counsel, the above contractual arrangements are legally binding and enforceable and do not violate current PRC laws and regulations. However, there are uncertainties regarding the interpretation and application of existing and future PRC laws and regulations. | ||||||||
Accordingly, the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to its opinion. If the current ownership structure of the Company and the VIE Agreements are found to be in violation of any existing or future PRC laws and regulations, the PRC government could: | ||||||||
· revoke the Company’s business and operating licenses; | ||||||||
· levy fines on the Company; | ||||||||
· confiscate any of the Company’s income that they deem to be obtained through illegal operations; | ||||||||
· shut down a portion or all of the Company’s servers or block a portion or all of the Company’s web site; | ||||||||
· discontinue or restrict the Company’s operations in the PRC; | ||||||||
· impose conditions or requirements with which the Company may not be able to comply; | ||||||||
· require the Company to restructure the Company’s corporate and contractual structure; | ||||||||
· take other regulatory or enforcement actions that could be harmful to the Company’s business. | ||||||||
If the imposition of any of these government actions, or any inability to enforce the contractual arrangements upon a breach, causes the Company to lose its ability to direct the activities of ATA Online or receive substantially all the economic benefits and residual returns from ATA Online and the Company is not able to restructure its ownership structure and operations in a satisfactory manner, the Company would no longer be able to consolidate the financial results of ATA Online in the Company’s consolidated financial statements. Total assets, total liability, equity, net sales, net income and cash flows of the Company would be significantly less than the reported amount in the consolidated financial statements of the Company. In the opinion of management, the likelihood of loss in respect of the Company’s current ownership structure or VIE Agreements is remote based on current facts and circumstances. | ||||||||
The equity interests of the VIE are legally held by Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang (nominee equity holders) on behalf of the Company. Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang, are directors of the Company. Mr. Kevin Xiaofeng Ma is also a shareholder of the Company and holds 11.3% of the Company’s total common shares issued and outstanding as of March 31, 2014. The Company cannot assure that when conflicts of interest arise, any of the nominee equity holders will act in the best interests of the Company or such conflicts will be resolved in the Company’s favor. Currently, the Company does not have any arrangements to address potential conflicts of interest between the nominee equity holders and the Company, except that the Company could exercise the purchase option under the exclusive option agreements with the nominee equity holders to request them to transfer all of their equity ownership in the VIE to the Company, ATA Learning or a third party designated by the Company. The Company relies on the nominee equity holders, both of whom are the Company’s directors and owe a fiduciary duty to the Company, to comply with the terms and conditions of the contractual arrangements. Such fiduciary duty requires directors to act in good faith and in the best interests of the Company and not to use their positions for personal gains. If the Company cannot resolve any conflict of interest or dispute between the Company and the nominee equity holders of the VIE, the Company would have to rely on legal proceedings, which could result in disruption of the Company’s business and subject the Company to substantial uncertainty as to the outcome of any such legal proceedings. | ||||||||
The Company’s involvement with the VIEs under the VIE Agreements affected the Company’s consolidated financial position, results of operations and cash flows as indicated below. | ||||||||
The assets and liabilities of ATA Online as of March 31, 2013 and 2014 and the net revenue and net income (loss) and cash flows for the years ended March 31, 2012, 2013 and 2014 are as follows: | ||||||||
March 31, | ||||||||
2013 | 2014 | |||||||
RMB | RMB | |||||||
Cash | 12,118,865 | 33,698,280 | ||||||
Accounts receivable, net | 11,441,392 | 19,564,392 | ||||||
Prepayment and other current assets | 3,395,536 | 1,455,916 | ||||||
Amounts due from related parties | 29,562 | 3,815,811 | ||||||
Total current assets | 26,985,355 | 58,534,399 | ||||||
Property and equipment, net | 1,277,283 | 894,182 | ||||||
Total assets | 28,262,638 | 59,428,581 | ||||||
Accrued expenses and other payables | 5,058,492 | 14,280,824 | ||||||
Amounts due to related parties | 1,804,678 | 9,708,450 | ||||||
Deferred revenue | 493,284 | 1,308,993 | ||||||
Total liabilities | 7,356,454 | 25,298,267 | ||||||
Year ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Net revenue | 49,782,361 | 24,960,260 | 100,204,186 | |||||
Net income (loss) | 25,782,832 | (10,495,582 | ) | 13,224,130 | ||||
Year ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Net cash provided by (used in) operating activities | 16,468,040 | (13,227,174 | ) | 21,829,320 | ||||
Net cash used in investing activities | (75,285 | ) | (1,128,140 | ) | (249,904 | ) | ||
Net cash used in financing activities | (6,255,300 | ) | — | — | ||||
Amounts due from related parties’ represent the amount due from ATA Inc.’s other subsidiaries, which are eliminated on consolidation. | ||||||||
Amounts due to related parties represent the amount due to ATA BVI and ATA Inc.’s other subsidiaries, which are eliminated on consolidation. | ||||||||
All of the assets of ATA Online can be used only to settle obligations of ATA Online. None of the assets of ATA Online has been pledged or collateralized. The creditors of ATA Online do not have recourse to the general credit of ATA BVI or the Company. | ||||||||
Recently issued accounting standards | ' | |||||||
(w) Recently issued accounting standards | ||||||||
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). The standard requires that companies present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source (e.g., the release due to cash flow hedges from interest rate contracts) and the income statement line items affected by the reclassification (e.g., interest income or interest expense). If a component is not required to be reclassified to net income in its entirety (e.g., the net periodic pension cost), companies would instead cross reference to the related footnote for additional information (e.g., the pension footnote). ASU 2013-02 is effective for interim and annual reporting periods beginning after December 15, 2012. The Company adopted the new standard on April 1, 2013. The adoption did not have a material impact on its consolidated financial statements or related disclosures. | ||||||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. The new standard is to be applied prospectively but retrospective application is permitted. The adoption is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. |
DESCRIPTION_OF_BUSINESS_ORGANI1
DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS (Tables) | 12 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Net revenues | Customer concentration risk | ' | |||||||||||||
Significant Concentrations and Risks | ' | |||||||||||||
Schedule of significant concentrations and risks | ' | |||||||||||||
Year Ended March 31, | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
RMB | % | RMB | % | RMB | % | |||||||||
China Banking Association | 36,971,719 | 10.50% | 60,573,979 | 16.50% | 67,516,046 | 17.60% | ||||||||
Securities Association of China | 131,404,013 | 37.30% | 84,244,267 | 23.00% | 64,057,268 | 16.70% | ||||||||
The Chinese Institute of Certified Public Accountants | — | — | 54,255,662 | 14.80% | 61,654,948 | 16.00% | ||||||||
Accounts receivable, net | Credit concentration risk, customers or financial institutions | ' | |||||||||||||
Significant Concentrations and Risks | ' | |||||||||||||
Schedule of significant concentrations and risks | ' | |||||||||||||
March 31, | ||||||||||||||
2013 | 2014 | |||||||||||||
RMB | % | RMB | % | |||||||||||
Securities Association of China | 19,643,518 | 38.40% | 17,481,156 | 25.60% | ||||||||||
China Banking Association | — | — | 7,779,899 | 11.40% | ||||||||||
China Customs Education and Training Center | 7,927,308 | 15.50% | 7,482,981 | 10.90% | ||||||||||
Cash and cash equivalent | Credit concentration risk, customers or financial institutions | ' | |||||||||||||
Significant Concentrations and Risks | ' | |||||||||||||
Schedule of significant concentrations and risks | ' | |||||||||||||
March 31, | ||||||||||||||
2013 | 2014 | |||||||||||||
RMB | RMB | |||||||||||||
Financial institutions in the mainland of the PRC | ||||||||||||||
— Denominated in Renminbi (“RMB”) | 248,284,360 | 291,498,542 | ||||||||||||
— Denominated in United Stated Dollars (“USD”) | 719 | 6,517,884 | ||||||||||||
Total cash and cash equivalents balances held at mainland PRC financial institutions | 248,285,079 | 298,016,426 | ||||||||||||
Financial institutions in Hong Kong Special Administrative Region (“HKSAR”) of the PRC | ||||||||||||||
— Denominated in RMB | 16,662,994 | 12,052,519 | ||||||||||||
— Denominated in Hong Kong Dollar | 3,172,392 | 307,363 | ||||||||||||
— Denominated in USD | 21,909,250 | 1,570,790 | ||||||||||||
Total cash balances held at HKSAR financial institutions | 41,744,636 | 13,930,672 | ||||||||||||
Total cash and cash equivalents balances held at financial institutions | 290,029,715 | 311,947,098 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||
Schedule of test monitoring costs and royalty fees | ' | |||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Test monitoring costs | 88,232,358 | 129,127,028 | 124,427,159 | |||||
Royalty fees | 22,032,654 | 15,594,990 | 14,850,125 | |||||
Schedule of useful lives of property and equipment | ' | |||||||
Building | 30 years | |||||||
Computer equipment | 3 to 5 years | |||||||
Furniture, fixtures and office equipment | 5 years | |||||||
Software | 3 to 5 years | |||||||
Motor vehicles | 5 years | |||||||
Leasehold improvements | the shorter of the lease terms or 5 years | |||||||
Schedule of allocation of recognized employee benefit expenses | ' | |||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Cost of revenues | 3,847,873 | 4,898,098 | 5,375,566 | |||||
Research and development | 3,694,142 | 4,214,374 | 4,960,632 | |||||
Sales and marketing | 3,551,100 | 5,269,923 | 3,511,656 | |||||
General and administrative | 2,206,793 | 2,608,307 | 2,568,027 | |||||
Total expense due to employee benefit plans | 13,299,908 | 16,990,702 | 16,415,881 | |||||
Schedule of assets and liabilities and the net revenue and net income (loss) and cash flows of ATA Online | ' | |||||||
March 31, | ||||||||
2013 | 2014 | |||||||
RMB | RMB | |||||||
Cash | 12,118,865 | 33,698,280 | ||||||
Accounts receivable, net | 11,441,392 | 19,564,392 | ||||||
Prepayment and other current assets | 3,395,536 | 1,455,916 | ||||||
Amounts due from related parties | 29,562 | 3,815,811 | ||||||
Total current assets | 26,985,355 | 58,534,399 | ||||||
Property and equipment, net | 1,277,283 | 894,182 | ||||||
Total assets | 28,262,638 | 59,428,581 | ||||||
Accrued expenses and other payables | 5,058,492 | 14,280,824 | ||||||
Amounts due to related parties | 1,804,678 | 9,708,450 | ||||||
Deferred revenue | 493,284 | 1,308,993 | ||||||
Total liabilities | 7,356,454 | 25,298,267 | ||||||
Year ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Net revenue | 49,782,361 | 24,960,260 | 100,204,186 | |||||
Net income (loss) | 25,782,832 | (10,495,582 | ) | 13,224,130 | ||||
Year ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Net cash provided by (used in) operating activities | 16,468,040 | (13,227,174 | ) | 21,829,320 | ||||
Net cash used in investing activities | (75,285 | ) | (1,128,140 | ) | (249,904 | ) | ||
Net cash used in financing activities | (6,255,300 | ) | — | — |
ACCOUNTS_RECEIVABLE_NET_Tables
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
ACCOUNTS RECEIVABLE, NET | ' | |||||||
Schedule of accounts receivable, net | ' | |||||||
March 31, | ||||||||
2013 | 2014 | |||||||
RMB | RMB | |||||||
Accounts receivable | 86,119,787 | 73,041,508 | ||||||
Less: allowance for doubtful accounts | (35,005,069 | ) | (4,688,433 | ) | ||||
Accounts receivable, net | 51,114,718 | 68,353,075 | ||||||
Schedule of activities in the allowance for doubtful accounts | ' | |||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Beginning allowance for doubtful accounts | 27,938,198 | 30,100,005 | 35,005,069 | |||||
Additions charged to (reversal of) provision for doubtful accounts | 2,350,990 | 9,140,062 | (3,738,232 | ) | ||||
Write-off of accounts receivable | (189,183 | ) | (4,234,998 | ) | (26,578,404 | ) | ||
Ending allowance for doubtful accounts | 30,100,005 | 35,005,069 | 4,688,433 |
PREPAID_EXPENSES_AND_OTHER_CUR1
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended | |||||
Mar. 31, 2014 | ||||||
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ' | |||||
Schedule of prepaid expenses and other current assets | ' | |||||
March 31, | ||||||
2013 | 2014 | |||||
RMB | RMB | |||||
Income tax receivable | — | 429,642 | ||||
Deferred income tax assets (note 10) | 7,524,161 | 8,429,138 | ||||
Advances to employees | 1,022,036 | 1,134,415 | ||||
Other current assets | 5,079,466 | 5,099,479 | ||||
Total prepaid expenses and other current assets | 13,625,663 | 15,092,674 |
PROPERTY_AND_EQUIPMENT_NET_Tab
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
PROPERTY AND EQUIPMENT, NET | ' | |||||||
Schedule of property and equipment, net | ' | |||||||
March 31, | ||||||||
2013 | 2014 | |||||||
RMB | RMB | |||||||
Building | 53,049,213 | 53,049,213 | ||||||
Computer equipment | 27,631,940 | 25,831,772 | ||||||
Furniture, fixtures and office equipment | 572,567 | 337,442 | ||||||
Software | 12,828,775 | 13,676,153 | ||||||
Motor vehicles | 2,023,598 | 2,277,113 | ||||||
Leasehold improvements | 10,204,808 | 6,792,895 | ||||||
106,310,901 | 101,964,588 | |||||||
Less: accumulated depreciation and amortization | (45,000,211 | ) | (46,150,406 | ) | ||||
Property and equipment, net | 61,310,690 | 55,814,182 | ||||||
Schedule of allocation of depreciation expense recognized | ' | |||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Cost of revenues | 2,306,543 | 1,746,736 | 1,774,066 | |||||
Research and development | 362,720 | 876,166 | 727,821 | |||||
Sales and marketing | 238,776 | 726,239 | 460,870 | |||||
General and administrative | 5,611,387 | 4,754,001 | 4,863,051 | |||||
Total depreciation expense | 8,519,426 | 8,103,142 | 7,825,808 |
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | |||||||||||
Schedule of change in the carrying amount of goodwill | ' | |||||||||||
RMB | ||||||||||||
Balance as of April 1, 2013 | 23,422,850 | |||||||||||
Acquisition of Xing Wei Group (Note 18) | 7,589,052 | |||||||||||
Balance as of March 31, 2014 | 31,011,902 | |||||||||||
Summary of company's intangible assets | ' | |||||||||||
March 31, 2013 | ||||||||||||
Weighted | ||||||||||||
Gross | Net | Average | ||||||||||
carrying | Accumulated | carrying | Amortization | |||||||||
amount | amortization | amount | Period | |||||||||
RMB | RMB | RMB | Years | |||||||||
ETS TOEIC license | 24,126,706 | (9,901,334 | ) | 14,225,372 | 10 | |||||||
Customer relationships | 1,300,000 | (442,498 | ) | 857,502 | 12 | |||||||
Total intangible assets | 25,426,706 | (10,343,832 | ) | 15,082,874 | ||||||||
March 31, 2014 | ||||||||||||
Weighted | ||||||||||||
Gross | Accumulated | Net | Average | |||||||||
carrying | amortization | carrying | Amortization | |||||||||
amount | /deduction | Impairment | amount | Period | ||||||||
RMB | RMB | RMB | RMB | Years | ||||||||
ETS TOEIC license | 24,126,706 | (12,117,249 | ) | (12,009,457 | ) | — | 10 | |||||
Customer relationships | 1,300,000 | (550,833 | ) | — | 749,167 | 12 | ||||||
Training platform | 422,700 | (35,225 | ) | — | 387,475 | 5 | ||||||
Contracts in progress (i) | 1,225,380 | (569,087 | ) | — | 656,293 | — | ||||||
Total intangible assets | 27,074,786 | (13,272,394 | ) | (12,009,457 | ) | 1,792,935 | ||||||
(i) Contracts in progress of RMB 569,087 recognized at the acquisition date were subsequently deducted from billing of RMB 735,000 upon completion of certain contracts as of March 31, 2014. The balance of RMB 656,293 will be deducted from the billing of RMB 1,911,000 upon completion of the remaining contracts. | ||||||||||||
Schedule of estimated amortization expense | ' | |||||||||||
As of March 31, 2014, the estimated amortization expense for the next five years is as follows: | ||||||||||||
March 31 | ||||||||||||
RMB | ||||||||||||
2015 | 192,873 | |||||||||||
2016 | 192,873 | |||||||||||
2017 | 192,873 | |||||||||||
2018 | 192,873 | |||||||||||
2019 | 157,648 |
ACCRUED_EXPENSES_AND_OTHER_PAY1
ACCRUED EXPENSES AND OTHER PAYABLES (Tables) | 12 Months Ended | |||||
Mar. 31, 2014 | ||||||
ACCRUED EXPENSES AND OTHER PAYABLES | ' | |||||
Schedule of accrued expenses and other payables | ' | |||||
March 31, | ||||||
2013 | 2014 | |||||
RMB | RMB | |||||
Business tax, value-added tax and other taxes payable | 6,276,692 | 8,556,910 | ||||
Accrued payroll and welfare | 15,684,309 | 19,379,016 | ||||
Accrued test monitoring fees | 14,946,724 | 14,183,667 | ||||
Accrued certificates costs | 2,593,694 | 2,702,086 | ||||
Royalty fees payable | 9,721,066 | 2,622,744 | ||||
Income taxes payable | 8,802,858 | 7,488,629 | ||||
Other current liabilities | 14,165,917 | 13,833,091 | ||||
Total accrued expenses and other payables | 72,191,260 | 68,766,143 |
DEFERRED_REVENUES_Tables
DEFERRED REVENUES (Tables) | 12 Months Ended | |||||
Mar. 31, 2014 | ||||||
DEFERRED REVENUES | ' | |||||
Schedule of deferred revenues | ' | |||||
March 31, | ||||||
2013 | 2014 | |||||
RMB | RMB | |||||
Testing services | 3,866,368 | 4,704,072 | ||||
Test preparation and training solutions | 376,885 | 1,210,307 | ||||
Other revenue — test-based education services | 1,131,246 | 327,735 | ||||
Other revenue — licensing fees from authorized test centers | 3,614,738 | 3,036,530 | ||||
Other revenue — others | 1,031,584 | 1,300,065 | ||||
Total deferred revenues | 10,020,821 | 10,578,709 | ||||
Representing: | ||||||
Current deferred revenues | 7,376,527 | 8,383,327 | ||||
Non-current deferred revenues | 2,644,294 | 2,195,382 |
NET_REVENUES_Tables
NET REVENUES (Tables) | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
NET REVENUES | ' | |||||||
Schedule of net revenues | ' | |||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Testing services | 290,881,289 | 335,790,689 | 358,837,352 | |||||
Test preparation and training solutions | 26,996,054 | 11,343,066 | 5,949,183 | |||||
Other revenue | 34,208,217 | 19,541,740 | 19,881,843 | |||||
Net revenues | 352,085,560 | 366,675,495 | 384,668,378 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
INCOME TAXES | ' | |||||||
Schedule of earnings before income taxes generated in jurisdictions | ' | |||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Cayman Islands and British Virgin Islands | (15,598,329 | ) | (19,373,510 | ) | (18,615,565 | ) | ||
PRC | 85,778,881 | 49,586,482 | 65,782,659 | |||||
Hong Kong | — | — | 4,803 | |||||
Earnings before income taxes | 70,180,552 | 30,212,972 | 47,171,897 | |||||
Schedule of income tax expense (benefit) | ' | |||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
PRC | ||||||||
Current expense | 13,189,414 | 10,226,537 | 9,312,545 | |||||
Deferred expense (benefit) | 1,149,668 | (3,221,555 | ) | (717,083 | ) | |||
Dividend withholding tax | — | — | 11,300,000 | |||||
Total income tax expense | 14,339,082 | 7,004,982 | 19,895,462 | |||||
Schedule of difference between actual income tax expense and amount computed by applying the PRC statutory income tax rate to earnings before income taxes | ' | |||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Computed “expected” income tax expense | 17,545,138 | 7,553,243 | 11,792,976 | |||||
Increase (decrease) in valuation allowance | (2,035,788 | ) | (735,773 | ) | 737,572 | |||
Preferential income tax rate | (8,301,350 | ) | (7,069,673 | ) | (6,208,364 | ) | ||
Entities not subject to income tax | 833,483 | 1,624,864 | 2,018,962 | |||||
Non-deductible expenses | ||||||||
Entertainment | 1,344,639 | 1,213,569 | 972,624 | |||||
Share-based compensation | 3,066,099 | 3,218,514 | 2,633,728 | |||||
Bad debt loss | 47,296 | 1,058,750 | 462,751 | |||||
Impairment of ETS TOEIC license | — | — | 3,002,364 | |||||
Changes in tax rates | 2,032,901 | 429,667 | — | |||||
Tax rate differential | (53,254 | ) | 1,977,043 | (4,213,407 | ) | |||
Dividend withholding tax | — | — | 11,300,000 | |||||
Additional deduction of research and development costs | (371,754 | ) | (2,309,671 | ) | (2,805,937 | ) | ||
Other | 231,672 | 44,449 | 202,193 | |||||
Actual income tax expense | 14,339,082 | 7,004,982 | 19,895,462 | |||||
Schedule of components of deferred income tax assets and liabilities | ' | |||||||
March 31, | ||||||||
2013 | 2014 | |||||||
RMB | RMB | |||||||
Deferred income tax assets: | ||||||||
Tax loss carryforwards | 2,876,488 | 4,644,352 | ||||||
Property and equipment, net | 1,709,276 | 1,494,298 | ||||||
Allowance for doubtful accounts | 1,592,868 | 1,172,108 | ||||||
Write-down of inventories | 317,163 | 24,237 | ||||||
Accrued expenses and other payables | 3,796,164 | 5,572,175 | ||||||
Total gross deferred income tax assets | 10,291,959 | 12,907,170 | ||||||
Less: valuation allowance | (921,751 | ) | (2,575,187 | ) | ||||
Net deferred income tax assets | 9,370,208 | 10,331,983 | ||||||
Deferred income tax liabilities: | ||||||||
Customer relationships | 195,452 | 179,202 | ||||||
Training platform | — | 96,869 | ||||||
Contract in progress | — | 164,073 | ||||||
Total gross deferred income tax liabilities | 195,452 | 440,144 | ||||||
Net deferred income tax assets | 9,174,756 | 9,891,839 | ||||||
Schedule of current and non-current deferred income tax assets and liabilities | ' | |||||||
March 31, | ||||||||
2013 | 2014 | |||||||
RMB | RMB | |||||||
Current deferred income tax assets, included in prepaid expenses and other current assets | 7,524,161 | 8,429,138 | ||||||
Non-current deferred income tax assets, included in other assets | 1,709,276 | 1,462,701 | ||||||
Non-current deferred income tax liabilities | (58,681 | ) | — | |||||
Net deferred income tax assets | 9,174,756 | 9,891,839 | ||||||
Summary of movements of the valuation allowance | ' | |||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Balance at the beginning of the year | 3,693,312 | 1,657,524 | 921,751 | |||||
Additions from Xing Wei Group acquisition | — | — | 915,864 | |||||
Additions of valuation allowance excluding acquisition | — | — | 737,572 | |||||
Reduction of valuation allowance | (2,035,788 | ) | (735,773 | ) | — | |||
Balance at the end of the year | 1,657,524 | 921,751 | 2,575,187 |
SHARE_BASED_COMPENSATION_Table
SHARE BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
SHARE BASED COMPENSATION | ' | |||||||||||
Schedule of stock options activity | ' | |||||||||||
Weighted | Weighted | Aggregate | ||||||||||
average | remaining | intrinsic | ||||||||||
Number of | exercise | contractual | value | |||||||||
shares | USD | Years | USD | |||||||||
Outstanding as of March 31, 2011 | 3,262,650 | 2.96 | ||||||||||
Granted | — | — | ||||||||||
Exercised | (27,864 | ) | 3.6 | |||||||||
Forfeited | — | — | ||||||||||
Expired | (446,444 | ) | 3.6 | |||||||||
Outstanding as ofMarch 31, 2012 | 2,788,342 | 2.85 | ||||||||||
Granted | — | — | ||||||||||
Exercised | — | — | ||||||||||
Forfeited | — | — | ||||||||||
Expired | (41,000 | ) | 3.6 | |||||||||
Outstanding as ofMarch 31, 2013 | 2,747,342 | 2.84 | ||||||||||
Granted | 1,469,460 | 2.5 | ||||||||||
Exercised | — | — | ||||||||||
Forfeited | — | — | ||||||||||
Expired | (2,135 | ) | 2.69 | |||||||||
Outstanding as ofMarch 31, 2014 | 4,214,667 | 2.72 | ||||||||||
Vested and expected to vest as of March 31, 2014 | 4,214,667 | 2.72 | 4.68 | Nil | ||||||||
Exercisable as of March 31, 2014 | 2,745,207 | 2.84 | 2.09 | Nil | ||||||||
Schedule of information relating to options outstanding and exercisable | ' | |||||||||||
Options outstanding as of March 31, 2014 | Options exercisable as of March 31, 2014 | |||||||||||
Exercise | Remaining | Exercise | Remaining | |||||||||
Number of | Price | Contractual | Number | Price | Contractual | |||||||
Shares | per Share | Life | of Shares | per Share | Life | |||||||
USD | Years | USD | Years | |||||||||
1,312,600 | 2.26 | 1.1 | 1,312,600 | 2.26 | 1.1 | |||||||
674,000 | 3.6 | 1.7 | 674,000 | 3.6 | 1.7 | |||||||
250,000 | 3.6 | 2.6 | 250,000 | 3.6 | 2.6 | |||||||
101,000 | 3.6 | 3.7 | 101,000 | 3.6 | 3.7 | |||||||
100,000 | 4.75 | 3.5 | 100,000 | 4.75 | 3.5 | |||||||
7,607 | 2.69 | 4.9 | 7,607 | 2.69 | 4.9 | |||||||
300,000 | 2.12 | 6 | 300,000 | 2.12 | 6 | |||||||
1,469,460 | 2.5 | 9.5 | — | 2.5 | 9.5 | |||||||
4,214,667 | 2.72 | 4.68 | 2,745,207 | 2.84 | 2.09 | |||||||
Summary of assumptions used in the valuation model | ' | |||||||||||
Year Ended March 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Expected dividend yield | — | — | 0% | |||||||||
Expected volatility | — | — | 75% | |||||||||
Expected term | — | — | 6.25 | |||||||||
Risk-free interest rate (per annum) | — | — | 1.77% | |||||||||
SHARE BASED COMPENSATION | ' | |||||||||||
Summary of the nonvested share activities | ' | |||||||||||
Weighted | ||||||||||||
average | ||||||||||||
Number | grant date | |||||||||||
of shares | fair value | |||||||||||
USD | ||||||||||||
Outstanding at March 31, 2011 | 306,000 | 2.949 | ||||||||||
Granted | 1,060,000 | 4.963 | ||||||||||
Vested | (116,245 | ) | 2.076 | |||||||||
Forfeited | (103,005 | ) | 4.47 | |||||||||
Outstanding at March 31, 2012 | 1,146,750 | 4.788 | ||||||||||
Granted | 100,000 | 2.015 | ||||||||||
Vested | (334,250 | ) | (4.348 | ) | ||||||||
Forfeited | (17,500 | ) | 1.904 | |||||||||
Outstanding at March 31, 2013 | 895,000 | 4.633 | ||||||||||
Granted | 280,000 | 2.145 | ||||||||||
Vested | (265,000 | ) | 4.963 | |||||||||
Forfeited | (100,000 | ) | 2.015 | |||||||||
Outstanding at March 31, 2014 | 810,000 | 3.989 | ||||||||||
Options | ' | |||||||||||
SHARE BASED COMPENSATION | ' | |||||||||||
Schedule of allocation of recognized compensation expense | ' | |||||||||||
Year Ended March 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
RMB | RMB | RMB | ||||||||||
Cost of revenues | — | — | — | |||||||||
Research and development | — | — | — | |||||||||
Sales and marketing | 42,914 | — | — | |||||||||
General and administrative | 547,231 | 306,659 | 3,946,384 | |||||||||
Total share based compensation expense | 590,145 | 306,659 | 3,946,384 | |||||||||
Nonvested shares | ' | |||||||||||
SHARE BASED COMPENSATION | ' | |||||||||||
Schedule of allocation of recognized compensation expense | ' | |||||||||||
Year Ended March 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
RMB | RMB | RMB | ||||||||||
Cost of revenues | 71,691 | 21,813 | 228,854 | |||||||||
Research and development | 189,462 | 308,577 | 336,869 | |||||||||
Sales and marketing | 344,226 | 702,683 | 454,503 | |||||||||
General and administrative | 11,068,873 | 10,239,490 | 5,568,300 | |||||||||
Total share based compensation expense | 11,674,252 | 11,272,563 | 6,588,526 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||
Mar. 31, 2014 | ||||
COMMITMENTS AND CONTINGENCIES | ' | |||
Schedule of future minimum lease payments under non-cancelable operating leases | ' | |||
Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of March 31, 2014 are: | ||||
Minimum | ||||
Lease Payments | ||||
Amount | ||||
RMB | ||||
Year ended March 31: | ||||
2015 | 13,098,314 | |||
2016 | 13,900,657 | |||
2017 | 9,496,776 | |||
2018 | 9,971,305 | |||
2019 | 10,467,905 | |||
Thereafter | 10,986,576 | |||
67,921,533 |
OPERATING_LEASES_Tables
OPERATING LEASES (Tables) | 12 Months Ended | |||
Mar. 31, 2014 | ||||
OPERATING LEASES | ' | |||
Schedule of property on operating leases | ' | |||
Property on Operating Leases | ||||
March 31, 2014 | ||||
RMB | ||||
Building | 26,251,157 | |||
Less: Accumulated depreciation | (4,156,433 | ) | ||
22,094,724 | ||||
Schedule of future minimum rentals under non-cancelable operating leases | ' | |||
Rentals under Operating Leases | ||||
Future minimum rentals under non-cancelable operating leases as of March 31, 2014 are: | ||||
Minimum | ||||
Rentals Amount | ||||
RMB | ||||
Year ended March 31: | ||||
2015 | 2,753,079 | |||
2016 | 3,308,825 | |||
2017 | 3,475,825 | |||
2018 | 3,647,360 | |||
2019 | 3,830,195 | |||
Thereafter | 3,663,927 | |||
20,679,211 |
EARNINGS_PER_COMMON_SHARE_Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
EARNINGS PER COMMON SHARE | ' | |||||||
Schedule of basic and diluted earnings per common share | ' | |||||||
Year Ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
RMB | RMB | RMB | ||||||
Numerator: | ||||||||
Net earnings | 55,841,470 | 23,207,990 | 27,276,435 | |||||
Less: Dividends paid to participating securities | (1,476,269 | ) | (525,049 | ) | — | |||
Net earnings attributable to participating securities | — | — | (509,201 | ) | ||||
Net earnings available to common shareholders | 54,365,201 | 22,682,941 | 26,767,234 | |||||
Denominator: | ||||||||
Denominator for basic earnings per share: | ||||||||
Weighted average common shares outstanding | 44,713,418 | 44,967,823 | 45,227,159 | |||||
Plus: Incremental shares issuable upon exercise of share options | 951,469 | 147,794 | 4,396 | |||||
Denominator for diluted earnings per share | 45,664,887 | 45,115,617 | 45,231,555 | |||||
Basic earnings per common share | 1.22 | 0.5 | 0.59 | |||||
Diluted earnings per common share | 1.19 | 0.5 | 0.59 | |||||
Summary of potential common shares outstanding excluded from the calculation of diluted earnings per share | ' | |||||||
Year ended March 31, | ||||||||
2012 | 2013 | 2014 | ||||||
Shares issuable under share options | 100,000 | 1,134,742 | 3,914,667 |
ACQUISITION_Tables
ACQUISITION (Tables) | 12 Months Ended | |||||
Mar. 31, 2014 | ||||||
ACQUISITION | ' | |||||
Schedule of pro forma summary presents consolidated information of the Company as if the business combination had occurred on April 1, 2012 | ' | |||||
Pro forma year | Pro forma year | |||||
ended March 31, | ended March 31, | |||||
2013(Unaudited) | 2014(Unaudited) | |||||
RMB | RMB | |||||
Net revenue | 367,598,801 | 386,386,238 | ||||
Net income | 20,640,931 | 23,342,382 | ||||
Summary of consideration paid to acquire Xing Wei Group and the amounts of identifiable assets acquired and liabilities assumed at the acquisition date | ' | |||||
October 31, 2013 | ||||||
RMB | ||||||
Fair value of consideration transferred: | ||||||
Cash | 19,612,120 | |||||
Fair values of identifiable assets acquired and liabilities assumed: | ||||||
Cash | 9,785,414 | |||||
Accounts receivable and other current assets | 710,300 | |||||
Contracts in progress | 1,225,380 | |||||
Property and equipment | 165,168 | |||||
Training platform | 422,700 | |||||
Accrued expenses and other current liabilities | (285,894 | ) | ||||
Total identifiable net assets | 12,023,068 | |||||
Goodwill | 7,589,052 | |||||
19,612,120 |
ATA_INC_Parent_Company_Tables
ATA INC (Parent Company) (Tables) | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
ATA INC. ("Parent Company") | ' | |||||||||
Schedule of condensed balance sheets | ' | |||||||||
Condensed Balance Sheets | ||||||||||
March 31, | ||||||||||
2013 | 2014 | 2014 | ||||||||
RMB | RMB | USD | ||||||||
Cash | 41,744,636 | 9,327,438 | 1,500,457 | |||||||
Prepaid expenses and other current assets | 464,873 | 174,575 | 28,083 | |||||||
Investments in subsidiaries | 334,415,959 | 403,522,684 | 64,912,599 | |||||||
Total assets | 376,625,468 | 413,024,697 | 66,441,139 | |||||||
Accrued expenses and other current liabilities | 1,077,749 | 1,132,825 | 182,231 | |||||||
Total liabilities | 1,077,749 | 1,132,825 | 182,231 | |||||||
Common shares | 3,461,060 | 3,474,894 | 558,988 | |||||||
Treasury shares | (329,357 | ) | (1,029,766 | ) | (165,653 | ) | ||||
Additional paid in capital | 427,443,700 | 437,964,776 | 70,453,120 | |||||||
Accumulated other comprehensive loss | (26,379,146 | ) | (27,145,929 | ) | (4,366,825 | ) | ||||
Accumulated deficit | (28,648,538 | ) | (1,372,103 | ) | (220,722 | ) | ||||
Total shareholders’ equity | 375,547,719 | 411,891,872 | 66,258,908 | |||||||
Total liabilities and shareholders’ equity | 376,625,468 | 413,024,697 | 66,441,139 | |||||||
Schedule of condensed statements of comprehensive income | ' | |||||||||
Condensed Statements ofComprehensive Income | ||||||||||
Year Ended March 31, | ||||||||||
2012 | 2013 | 2014 | 2014 | |||||||
RMB | RMB | RMB | USD | |||||||
Operating expenses | (7,487,523 | ) | (7,567,474 | ) | (5,415,249 | ) | (871,124 | ) | ||
Investment income | 60,175,402 | 30,685,632 | 32,612,787 | 5,246,250 | ||||||
Interest income | 377,333 | 112,656 | 40,889 | 6,578 | ||||||
Foreign currency exchange gains (losses), net | 2,776,258 | (22,824 | ) | 38,008 | 6,113 | |||||
Earnings before income taxes | 55,841,470 | 23,207,990 | 27,276,435 | 4,387,817 | ||||||
Income tax expense | — | — | — | — | ||||||
Net income | 55,841,470 | 23,207,990 | 27,276,435 | 4,387,817 | ||||||
Foreign currency translation adjustment, net of nil income taxes | (3,787,210 | ) | (374,747 | ) | (766,783 | ) | (123,348 | ) | ||
Comprehensive income | 52,054,260 | 22,833,243 | 26,509,652 | 4,264,469 | ||||||
Schedule of condensed statements of cash flows | ' | |||||||||
Condensed Statements of Cash Flows | ||||||||||
Year Ended March 31, | ||||||||||
2012 | 2013 | 2014 | 2014 | |||||||
RMB | RMB | RMB | USD | |||||||
Net cash used in operating activities | (4,529,639 | ) | (6,675,424 | ) | (4,994,557 | ) | (803,449 | ) | ||
Cash flows from investing activities : | ||||||||||
Collection from (payment to) subsidiaries | 1,140,127 | 26,836,132 | (6,911,210 | ) | (1,111,770 | ) | ||||
Payment for XingWei acquisition | — | — | (19,612,120 | ) | (3,154,900 | ) | ||||
Net cash provided by investing activities | 1,140,127 | 26,836,132 | (26,523,330 | ) | (4,266,670 | ) | ||||
Cash flows from financing activities : | ||||||||||
Proceeds from exercise of share options | 631,844 | — | — | — | ||||||
Cash paid for employee individual income tax of net-settlement of vested shares | — | (913,453 | ) | — | — | |||||
Cash paid for repurchase of common shares | — | (329,357 | ) | (132,528 | ) | (21,319 | ) | |||
Collection of receivable from shareholders | 1,035,796 | — | — | — | ||||||
Special cash dividend | (63,634,726 | ) | (25,331,341 | ) | — | — | ||||
Net cash used in financing activities | (61,967,086 | ) | (26,574,151 | ) | (132,528 | ) | (21,319 | ) | ||
Effect of foreign exchange rate changes on cash | (2,929,270 | ) | (374,747 | ) | (766,783 | ) | (123,348 | ) | ||
Net decrease in cash | (68,285,868 | ) | (6,788,190 | ) | (32,417,198 | ) | (5,214,786 | ) | ||
Cash at beginning of year | 116,818,694 | 48,532,826 | 41,744,636 | 6,715,243 | ||||||
Cash at end of year | 48,532,826 | 41,744,636 | 9,327,438 | 1,500,457 |
DESCRIPTION_OF_BUSINESS_ORGANI2
DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS (Details) | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2013 | Mar. 31, 2011 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
USD ($) | CNY | CNY | CNY | USD ($) | CNY | Net revenues | Net revenues | Net revenues | Net revenues | Net revenues | Net revenues | Net revenues | Net revenues | Net revenues | Net revenues | Net revenues | Accounts receivable, net | Accounts receivable, net | Accounts receivable, net | Accounts receivable, net | Accounts receivable, net | Balances held at financial institutions | Balances held at financial institutions | Balances held at financial institutions | Balances held at financial institutions | Balances held at financial institutions | Balances held at financial institutions | Balances held at financial institutions | Balances held at financial institutions | Balances held at financial institutions | Balances held at financial institutions | Balances held at financial institutions | Balances held at financial institutions | Balances held at financial institutions | Balances held at financial institutions | Balances held at financial institutions | Balances held at financial institutions | |
Customer concentration risk | Customer concentration risk | Customer concentration risk | Customer concentration risk | Customer concentration risk | Customer concentration risk | Customer concentration risk | Customer concentration risk | Customer concentration risk | Customer concentration risk | Customer concentration risk | Credit concentration risk, customers or financial institutions | Credit concentration risk, customers or financial institutions | Credit concentration risk, customers or financial institutions | Credit concentration risk, customers or financial institutions | Credit concentration risk, customers or financial institutions | Credit concentration risk, customers or financial institutions | Credit concentration risk, customers or financial institutions | Credit concentration risk, customers or financial institutions | Credit concentration risk, customers or financial institutions | Credit concentration risk, customers or financial institutions | Credit concentration risk, customers or financial institutions | Credit concentration risk, customers or financial institutions | Credit concentration risk, customers or financial institutions | Credit concentration risk, customers or financial institutions | Credit concentration risk, customers or financial institutions | Credit concentration risk, customers or financial institutions | Credit concentration risk, customers or financial institutions | Credit concentration risk, customers or financial institutions | Credit concentration risk, customers or financial institutions | Credit concentration risk, customers or financial institutions | Credit concentration risk, customers or financial institutions | |||||||
Chinese government controlled entities | Chinese government controlled entities | Chinese government controlled entities | China Banking Association | China Banking Association | China Banking Association | Securities Association of China | Securities Association of China | Securities Association of China | The Chinese Institute of Certified Public Accountants | The Chinese Institute of Certified Public Accountants | China Banking Association | Securities Association of China | Securities Association of China | China Customs Education and Training Center | China Customs Education and Training Center | CNY | CNY | PRC | PRC | PRC | PRC | PRC | PRC | HKSAR | HKSAR | HKSAR | HKSAR | HKSAR | HKSAR | HKSAR | HKSAR | |||||||
CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | Denominated in Renminbi ("RMB") | Denominated in Renminbi ("RMB") | Denominated in United Stated Dollars ("USD") | Denominated in United Stated Dollars ("USD") | CNY | CNY | Denominated in Renminbi ("RMB") | Denominated in Renminbi ("RMB") | Denominated in Hong Kong Dollar | Denominated in Hong Kong Dollar | Denominated in United Stated Dollars ("USD") | Denominated in United Stated Dollars ("USD") | |||||||||
CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | |||||||||||||||||||||||||||||
DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period in which PRC government pursuing economic reform policies | '30 years | '30 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Significant Concentrations and Risks | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Service fees | ' | ' | ' | ' | ' | ' | 250,300,000 | 246,900,000 | 240,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | 61,879,605 | 384,668,378 | 366,675,495 | 352,085,560 | ' | ' | ' | ' | ' | 67,516,046 | 60,573,979 | 36,971,719 | 64,057,268 | 84,244,267 | 131,404,013 | 61,654,948 | 54,255,662 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of concentration of risk | ' | ' | ' | ' | ' | ' | 65.10% | 67.30% | 68.40% | 17.60% | 16.50% | 10.50% | 16.70% | 23.00% | 37.30% | 16.00% | 14.80% | 11.40% | 25.60% | 38.40% | 10.90% | 15.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable, net | 10,995,604 | 68,353,075 | 51,114,718 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,779,899 | 17,481,156 | 19,643,518 | 7,482,981 | 7,927,308 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents balances | $50,181,311 | 311,947,098 | 290,029,715 | 257,167,696 | $46,655,575 | 268,058,194 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 311,947,098 | 290,029,715 | 298,016,426 | 248,285,079 | 291,498,542 | 248,284,360 | 6,517,884 | 719 | 13,930,672 | 41,744,636 | 12,052,519 | 16,662,994 | 307,363 | 3,172,392 | 1,570,790 | 21,909,250 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
CNY | CNY | CNY | USD ($) | Software developed for internal use | Software developed for internal use | Software developed for internal use | Software developed for sale | Software developed for sale | Software developed for sale | Online test preparation and training service | Online test preparation and training service | Test-based education services | Test-based educational services for degree major course programs | Test-based educational services for degree major course programs | Licensing fees from authorized test centers | Test development services | Test development services | |
CNY | CNY | CNY | CNY | CNY | CNY | Minimum | Maximum | Minimum | Minimum | Maximum | Minimum | Maximum | ||||||
item | ||||||||||||||||||
Foreign currency translation and risks | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rate for translation of balances of financial statements from RMB to US$ | 6.2164 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value measurements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of intangible assets | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for which end users can access services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | '365 days | ' | ' | ' | ' | ' | ' |
Period of revenue recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 months | '12 months | '10 years | ' | ' |
Number of courses for which fees are not refundable if they are not completed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' |
Period for development of tests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 months | '6 months |
Business tax as a percentage of gross revenues | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
VAT rate one as a percentage of gross revenues | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
VAT rate two as a percentage of gross revenues | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Test monitoring costs | 124,427,159 | 129,127,028 | 88,232,358 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Royalty fees | 14,850,125 | 15,594,990 | 22,032,654 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and development costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalized costs for the period | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted cash | 2,700,000 | ' | ' | $434,335 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 12 Months Ended |
Mar. 31, 2014 | |
Property and equipment, net | ' |
Leasehold improvements, useful lives, if shorter than lease terms | '5 years |
Building | ' |
Property and equipment, net | ' |
Useful lives | '30 years |
Computer equipment | Minimum | ' |
Property and equipment, net | ' |
Useful lives | '3 years |
Computer equipment | Maximum | ' |
Property and equipment, net | ' |
Useful lives | '5 years |
Furniture, fixtures and office equipment | ' |
Property and equipment, net | ' |
Useful lives | '5 years |
Software | Minimum | ' |
Property and equipment, net | ' |
Useful lives | '3 years |
Software | Maximum | ' |
Property and equipment, net | ' |
Useful lives | '5 years |
Motor vehicles | ' |
Property and equipment, net | ' |
Useful lives | '5 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) | 12 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | |
USD ($) | CNY | CNY | CNY | Minimum | Maximum | |
Intangible assets | ' | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | ' | ' | '5 years | '12 years |
Intangible assets with indefinite useful lives | ' | 0 | ' | ' | ' | ' |
Impairment of long-lived assets, excluding goodwill | ' | ' | ' | ' | ' | ' |
Impairment loss of intangible assets | 1,931,899 | 12,009,457 | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' |
Goodwill impairment loss | ' | 0 | 0 | 0 | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) (CNY) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
item | |||
Employee benefit plans | ' | ' | ' |
Expense due to employee benefit plans | 16,415,881 | 16,990,702 | 13,299,908 |
Segment reporting | ' | ' | ' |
Number of operating segments | 1 | ' | ' |
Cost of revenues | ' | ' | ' |
Employee benefit plans | ' | ' | ' |
Expense due to employee benefit plans | 5,375,566 | 4,898,098 | 3,847,873 |
Research and development | ' | ' | ' |
Employee benefit plans | ' | ' | ' |
Expense due to employee benefit plans | 4,960,632 | 4,214,374 | 3,694,142 |
Sales and marketing | ' | ' | ' |
Employee benefit plans | ' | ' | ' |
Expense due to employee benefit plans | 3,511,656 | 5,269,923 | 3,551,100 |
General and administrative | ' | ' | ' |
Employee benefit plans | ' | ' | ' |
Expense due to employee benefit plans | 2,568,027 | 2,608,307 | 2,206,793 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Oct. 27, 2006 | Jul. 07, 2009 | Mar. 31, 2014 | |
USD ($) | CNY | CNY | CNY | ATA Online | ATA Online | ATA Online | Mr. Kevin Xiaofeng Ma | ATA Online | ATA Online | ATA Online | ATA Online | ATA Online | ATA Online | ATA Online | ATA Online | ATA Online | ATA Online | ATA Online | ATA Online | ATA Online | ATA Online | |
CNY | CNY | CNY | Loan on October 27, 2006 | Loan on July 7, 2009 | Technical support agreement and strategic consulting service agreement | Technical support agreement and strategic consulting service agreement | Technical support agreement and strategic consulting service agreement | Technical support agreement | Strategic consulting service agreement | Call option and cooperation agreement | Equity holders: Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang | Equity holders: Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang | Equity holders: Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang | Equity holders: Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang | Equity holders: Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang | |||||||
CNY | CNY | CNY | CNY | Loan agreements | Loan on October 27, 2006 | Loan on July 7, 2009 | Equity pledge agreement | |||||||||||||||
CNY | CNY | CNY | ||||||||||||||||||||
Variable Interest Entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Legal ownership interest (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity investment by co-founders in Variable Interest Entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' |
Percentage of equity interest that can be acquired as per exclusive purchase option | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest free loans to VIE's equity holders for the sole purpose of investing in VIE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | 1,000,000 | 9,000,000 | ' |
Term of agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '20 years | ' | ' | '10 years | ' | ' | ' |
Remaining term of agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 7 months 6 days | '5 years 3 months 18 days | ' | ' | ' | '2 years 7 months 6 days | '12 years 7 months 6 days | ' | ' | ' | ' | ' | '12 years 7 months 6 days |
Automatic renewal term of the agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '1 year | ' | ' | ' | ' | ' | ' |
Notice period prior to expiration of agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | '30 days | '30 days | ' | ' | ' | ' | ' |
Amount billed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | 12,600,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount collected | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 12,600,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of total common shares issued and outstanding held | ' | ' | ' | ' | ' | ' | ' | 11.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets and liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | ' | 33,698,280 | 12,118,865 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable, net | 10,995,604 | 68,353,075 | 51,114,718 | ' | 19,564,392 | 11,441,392 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment and other current assets | 2,427,880 | 15,092,674 | 13,625,663 | ' | 1,455,916 | 3,395,536 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts due from related parties | ' | ' | ' | ' | 3,815,811 | 29,562 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total current assets | 64,039,130 | 398,092,847 | 354,770,096 | ' | 58,534,399 | 26,985,355 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, net | 8,978,538 | 55,814,182 | 61,310,690 | ' | 894,182 | 1,277,283 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets | 79,022,702 | 491,236,724 | 457,818,481 | ' | 59,428,581 | 28,262,638 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued expenses and other payables | 11,062,052 | 68,766,143 | 72,191,260 | ' | 14,280,824 | 5,058,492 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts due to related parties | ' | ' | ' | ' | 9,708,450 | 1,804,678 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenues | 1,348,582 | 8,383,327 | 7,376,527 | ' | 1,308,993 | 493,284 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities | 12,763,794 | 79,344,852 | 82,270,762 | ' | 25,298,267 | 7,356,454 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue and net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | 61,879,605 | 384,668,378 | 366,675,495 | 352,085,560 | 100,204,186 | 24,960,260 | 49,782,361 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 4,387,817 | 27,276,435 | 23,207,990 | 55,841,470 | 13,224,130 | -10,495,582 | 25,782,832 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash flows | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash provided by (used in) operating activities | 6,007,296 | 37,343,760 | 67,777,743 | 59,352,866 | 21,829,320 | -13,227,174 | 16,468,040 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash used in investing activities | -2,245,541 | -13,959,185 | -7,966,826 | -5,347,008 | -249,904 | -1,128,140 | -75,285 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash used in financing activities | -112,671 | -700,409 | -26,574,151 | -61,967,086 | ' | ' | -6,255,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets pledged or collateralized | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ACCOUNTS_RECEIVABLE_NET_Detail
ACCOUNTS RECEIVABLE, NET (Details) | 12 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
USD ($) | CNY | CNY | CNY | |
ACCOUNTS RECEIVABLE, NET | ' | ' | ' | ' |
Accounts receivable | ' | 73,041,508 | 86,119,787 | ' |
Less: allowance for doubtful accounts | ' | -4,688,433 | -35,005,069 | -30,100,005 |
Accounts receivable, net | 10,995,604 | 68,353,075 | 51,114,718 | ' |
Activity in allowance for doubtful accounts for accounts receivable | ' | ' | ' | ' |
Beginning allowance for doubtful accounts | ' | 35,005,069 | 30,100,005 | 27,938,198 |
Additions charged to (reversal of) provision for doubtful accounts | -601,350 | -3,738,232 | 9,140,062 | 2,350,990 |
Write-off of accounts receivable | ' | -26,578,404 | -4,234,998 | -189,183 |
Ending allowance for doubtful accounts | ' | 4,688,433 | 35,005,069 | 30,100,005 |
PREPAID_EXPENSES_AND_OTHER_CUR2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 |
USD ($) | CNY | CNY | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ' | ' | ' |
Income tax receivable | ' | 429,642 | ' |
Deferred income tax assets (note 10) | ' | 8,429,138 | 7,524,161 |
Advances to employees | ' | 1,134,415 | 1,022,036 |
Other current assets | ' | 5,099,479 | 5,079,466 |
Total prepaid expenses and other current assets | $2,427,880 | 15,092,674 | 13,625,663 |
PROPERTY_AND_EQUIPMENT_NET_Det
PROPERTY AND EQUIPMENT, NET (Details) | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
CNY | CNY | CNY | USD ($) | Cost of revenues | Cost of revenues | Cost of revenues | Research and development | Research and development | Research and development | Sales and marketing | Sales and marketing | Sales and marketing | General and administrative | General and administrative | General and administrative | Building | Building | Computer equipment | Computer equipment | Furniture, fixtures and office equipment | Furniture, fixtures and office equipment | Software | Software | Motor vehicles | Motor vehicles | Leasehold improvements | Leasehold improvements | |
CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | |||||
PROPERTY AND EQUIPMENT, NET | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, gross | 101,964,588 | 106,310,901 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53,049,213 | 53,049,213 | 25,831,772 | 27,631,940 | 337,442 | 572,567 | 13,676,153 | 12,828,775 | 2,277,113 | 2,023,598 | 6,792,895 | 10,204,808 |
Less: accumulated depreciation and amortization | -46,150,406 | -45,000,211 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, net | 55,814,182 | 61,310,690 | ' | 8,978,538 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total depreciation expense | 7,825,808 | 8,103,142 | 8,519,426 | ' | 1,774,066 | 1,746,736 | 2,306,543 | 727,821 | 876,166 | 362,720 | 460,870 | 726,239 | 238,776 | 4,863,051 | 4,754,001 | 5,611,387 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) | 12 Months Ended | |||||||||||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Oct. 31, 2013 | Mar. 31, 2014 | |
USD ($) | CNY | CNY | CNY | ETS TOEIC license | ETS TOEIC license | Customer relationships | Customer relationships | Training platform | Contracts in progress | Contracts in progress | Contracts in progress | |
CNY | CNY | CNY | CNY | CNY | CNY | CNY | Upon completion of the remaining contracts | |||||
CNY | ||||||||||||
Change in the carrying amount of goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of the year | ' | 23,422,850 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of Xing Wei Group | ' | 7,589,052 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at end of the year | 4,988,724 | 31,011,902 | 23,422,850 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes in the carrying amount of goodwill | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross carrying amount | ' | 27,074,786 | 25,426,706 | ' | 24,126,706 | 24,126,706 | 1,300,000 | 1,300,000 | 422,700 | 1,225,380 | ' | ' |
Accumulated amortization/deduction | ' | -13,272,394 | -10,343,832 | ' | -12,117,249 | -9,901,334 | -550,833 | -442,498 | -35,225 | -569,087 | ' | ' |
Impairment | -1,931,899 | -12,009,457 | ' | ' | -12,009,457 | ' | ' | ' | ' | ' | ' | ' |
Net carrying amount | ' | 1,792,935 | 15,082,874 | ' | ' | 14,225,372 | 749,167 | 857,502 | 387,475 | 656,293 | ' | ' |
Weighted Average Amortization Period | ' | ' | ' | ' | '10 years | '10 years | '12 years | '12 years | '5 years | ' | ' | ' |
Billing amount of contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 735,000 | 1,911,000 |
Amortization expenses | ' | 2,359,475 | 2,514,392 | 2,758,838 | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | ' | 192,873 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | ' | 192,873 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | ' | 192,873 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | ' | 192,873 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2019 | ' | 157,648 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ACCRUED_EXPENSES_AND_OTHER_PAY2
ACCRUED EXPENSES AND OTHER PAYABLES (Details) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 |
USD ($) | CNY | CNY | |
ACCRUED EXPENSES AND OTHER PAYABLES | ' | ' | ' |
Business tax, value-added tax and other taxes payable | ' | 8,556,910 | 6,276,692 |
Accrued payroll and welfare | ' | 19,379,016 | 15,684,309 |
Accrued test monitoring fees | ' | 14,183,667 | 14,946,724 |
Accrued certificates costs | ' | 2,702,086 | 2,593,694 |
Royalty fees payable | ' | 2,622,744 | 9,721,066 |
Income taxes payable | ' | 7,488,629 | 8,802,858 |
Other current liabilities | ' | 13,833,091 | 14,165,917 |
Total accrued expenses and other payables | $11,062,052 | 68,766,143 | 72,191,260 |
DEFERRED_REVENUES_Details
DEFERRED REVENUES (Details) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
USD ($) | CNY | CNY | Testing services | Testing services | Test preparation and training solutions | Test preparation and training solutions | Other revenue - test-based education services | Other revenue - test-based education services | Other revenue - licensing fees from authorized test centers | Other revenue - licensing fees from authorized test centers | Other revenue - others | Other revenue - others | |
CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | ||||
DEFERRED REVENUES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total deferred revenues | ' | 10,578,709 | 10,020,821 | 4,704,072 | 3,866,368 | 1,210,307 | 376,885 | 327,735 | 1,131,246 | 3,036,530 | 3,614,738 | 1,300,065 | 1,031,584 |
Representing: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current deferred revenues | 1,348,582 | 8,383,327 | 7,376,527 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-current deferred revenues | $353,160 | 2,195,382 | 2,644,294 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NET_REVENUES_Details
NET REVENUES (Details) | 12 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
USD ($) | CNY | CNY | CNY | Testing services | Testing services | Testing services | Test preparation and training solutions | Test preparation and training solutions | Test preparation and training solutions | Other revenue | Other revenue | Other revenue | Test-based education services | Test-based education services | Test-based education services | Product sales | Product sales | Product sales | |
CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | |||||
NET REVENUES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | $61,879,605 | 384,668,378 | 366,675,495 | 352,085,560 | 358,837,352 | 335,790,689 | 290,881,289 | 5,949,183 | 11,343,066 | 26,996,054 | 19,881,843 | 19,541,740 | 34,208,217 | 3,309,944 | 6,778,429 | 12,614,294 | 569,579 | 1,095,370 | 788,062 |
INCOME_TAXES_Details
INCOME TAXES (Details) (CNY) | 12 Months Ended | 75 Months Ended | 3 Months Ended | 36 Months Ended | 27 Months Ended | 36 Months Ended | 9 Months Ended | 12 Months Ended | 27 Months Ended | 36 Months Ended | 9 Months Ended | 12 Months Ended | 27 Months Ended | 36 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2010 | Mar. 31, 2014 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2015 | Mar. 31, 2014 | |
PRC | PRC | PRC | PRC | PRC | PRC | PRC | PRC | PRC | PRC | PRC | PRC | PRC | PRC | PRC | PRC | PRC | ||||
ATA Testing | ATA Testing | ATA Testing | ATA Learning | ATA Learning | ATA Learning | ATA Learning | ATA Online | ATA Online | ATA Online | ATA Online | Beijing JDX | Beijing JDX | Beijing JDX | Beijing JDX | Zhi Xing | |||||
Future | Future | Future | Future | Future | Future | |||||||||||||||
Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | 25.00% | ' | ' | ' | 25.00% | 25.00% |
Preferential tax rate as a high and new technology enterprise (as a percent) | ' | ' | ' | 15.00% | ' | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | ' | 15.00% | 15.00% | 15.00% | ' | 15.00% | 15.00% | 15.00% | ' | ' |
Withholding tax rate for dividends distributed by a PRC-resident enterprise to its immediate holding company outside the PRC (as a percent) | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Undistributed earnings generated by the PRC consolidated entities | 89,611,563 | 142,455,116 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized deferred income tax liability related to undistributed earnings | 8,961,156 | 14,245,512 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend distribution from PRC subsidiaries to holding company | 113,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend withholding tax | 11,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) | 12 Months Ended | ||||||||||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | |
USD ($) | CNY | CNY | CNY | Cayman Islands and British Virgin Islands | Cayman Islands and British Virgin Islands | Cayman Islands and British Virgin Islands | PRC | PRC | PRC | Hong Kong | |
CNY | CNY | CNY | CNY | CNY | CNY | CNY | |||||
Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings before income taxes | $7,588,297 | 47,171,897 | 30,212,972 | 70,180,552 | -18,615,565 | -19,373,510 | -15,598,329 | 65,782,659 | 49,586,482 | 85,778,881 | 4,803 |
Current expense | ' | 9,312,545 | 10,226,537 | 13,189,414 | ' | ' | ' | ' | ' | ' | ' |
Deferred expense (benefit) | ' | -717,083 | -3,221,555 | 1,149,668 | ' | ' | ' | ' | ' | ' | ' |
Dividend withholding tax | ' | 11,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total income tax expense | $3,200,480 | 19,895,462 | 7,004,982 | 14,339,082 | ' | ' | ' | ' | ' | ' | ' |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) | 12 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
USD ($) | CNY | CNY | CNY | |
INCOME TAXES | ' | ' | ' | ' |
PRC statutory income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% |
Difference between actual income tax expense and amount computed by applying the PRC statutory income tax rate to earnings (loss) before income taxes | ' | ' | ' | ' |
Computed "expected" income tax expense | ' | 11,792,976 | 7,553,243 | 17,545,138 |
Increase (decrease) in valuation allowance | ' | 737,572 | -735,773 | -2,035,788 |
Preferential income tax rate | ' | -6,208,364 | -7,069,673 | -8,301,350 |
Entities not subject to income tax | ' | 2,018,962 | 1,624,864 | 833,483 |
Non-deductible expenses | ' | ' | ' | ' |
Entertainment | ' | 972,624 | 1,213,569 | 1,344,639 |
Share-based compensation | ' | 2,633,728 | 3,218,514 | 3,066,099 |
Bad debt loss | ' | 462,751 | 1,058,750 | 47,296 |
Impairment of ETS TOEIC license | ' | 3,002,364 | ' | ' |
Changes in tax rates | ' | ' | 429,667 | 2,032,901 |
Tax rate differential | ' | -4,213,407 | 1,977,043 | -53,254 |
Dividend withholding tax | ' | 11,300,000 | ' | ' |
Additional deduction of research and development costs | ' | -2,805,937 | -2,309,671 | -371,754 |
Other | ' | 202,193 | 44,449 | 231,672 |
Total income tax expense | $3,200,480 | 19,895,462 | 7,004,982 | 14,339,082 |
INCOME_TAXES_Details_4
INCOME TAXES (Details 4) (CNY) | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 |
Deferred income tax assets: | ' | ' | ' | ' |
Tax loss carryforwards | 4,644,352 | 2,876,488 | ' | ' |
Property and equipment, net | 1,494,298 | 1,709,276 | ' | ' |
Allowance for doubtful accounts | 1,172,108 | 1,592,868 | ' | ' |
Write-down of inventories | 24,237 | 317,163 | ' | ' |
Accrued expenses and other payables | 5,572,175 | 3,796,164 | ' | ' |
Total gross deferred income tax assets | 12,907,170 | 10,291,959 | ' | ' |
Less: valuation allowance | -2,575,187 | -921,751 | -1,657,524 | -3,693,312 |
Net deferred income tax assets | 10,331,983 | 9,370,208 | ' | ' |
Income taxes | ' | ' | ' | ' |
Total gross deferred income tax liabilities | 440,144 | 195,452 | ' | ' |
Net deferred income tax assets | 9,891,839 | 9,174,756 | ' | ' |
Deferred income tax assets | ' | ' | ' | ' |
Current deferred income tax assets, included in prepaid expenses and other current assets | 8,429,138 | 7,524,161 | ' | ' |
Non-current deferred income tax assets, included in other assets | 1,462,701 | 1,709,276 | ' | ' |
Non-current deferred income tax liabilities | ' | -58,681 | ' | ' |
Net deferred income tax assets | 9,891,839 | 9,174,756 | ' | ' |
Customer relationships | ' | ' | ' | ' |
Income taxes | ' | ' | ' | ' |
Intangible assets acquired | 179,202 | 195,452 | ' | ' |
Training platform | ' | ' | ' | ' |
Income taxes | ' | ' | ' | ' |
Intangible assets acquired | 96,869 | ' | ' | ' |
Contract in progress | ' | ' | ' | ' |
Income taxes | ' | ' | ' | ' |
Intangible assets acquired | 164,073 | ' | ' | ' |
INCOME_TAXES_Details_5
INCOME TAXES (Details 5) (CNY) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Movements of the valuation allowance | ' | ' | ' |
Balance at the beginning of the year | 921,751 | 1,657,524 | 3,693,312 |
Additions from Xing Wei Group acquisition | 915,864 | ' | ' |
Additions of valuation allowance excluding acquisition | 737,572 | ' | ' |
Reduction of valuation allowance | ' | -735,773 | -2,035,788 |
Balance at the end of the year | 2,575,187 | 921,751 | 1,657,524 |
Valuation allowance and loss carry forwards | ' | ' | ' |
Valuation allowance | 2,575,187 | 921,751 | 1,657,524 |
Additional disclosures | ' | ' | ' |
Unrecognized tax benefits | 0 | 0 | 0 |
Interest and penalties recorded | 0 | 0 | 0 |
Period of statute of limitations, if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent | '3 years | ' | ' |
Period of statute of limitations, if the underpayment is more than RMB 100,000 | '5 years | ' | ' |
Minimum amount of underpayment of taxes for statute of limitations to be extended to five years | 100,000 | ' | ' |
Period of statute of limitations for transfer pricing issues | '10 years | ' | ' |
PRC | ' | ' | ' |
Valuation allowance and loss carry forwards | ' | ' | ' |
Tax loss carry forwards for PRC income tax purpose | 18,577,405 | ' | ' |
PRC | December 31, 2014 | ' | ' | ' |
Valuation allowance and loss carry forwards | ' | ' | ' |
Tax loss carry forwards for PRC income tax purpose | 0 | ' | ' |
PRC | December 31, 2015 | ' | ' | ' |
Valuation allowance and loss carry forwards | ' | ' | ' |
Tax loss carry forwards for PRC income tax purpose | 2,237,578 | ' | ' |
PRC | December 31, 2016 | ' | ' | ' |
Valuation allowance and loss carry forwards | ' | ' | ' |
Tax loss carry forwards for PRC income tax purpose | 0 | ' | ' |
PRC | December 31, 2017 | ' | ' | ' |
Valuation allowance and loss carry forwards | ' | ' | ' |
Tax loss carry forwards for PRC income tax purpose | 508,730 | ' | ' |
PRC | December 31, 2018 | ' | ' | ' |
Valuation allowance and loss carry forwards | ' | ' | ' |
Tax loss carry forwards for PRC income tax purpose | 5,921,488 | ' | ' |
PRC | December 31, 2019 | ' | ' | ' |
Valuation allowance and loss carry forwards | ' | ' | ' |
Tax loss carry forwards for PRC income tax purpose | 9,909,609 | ' | ' |
SHARE_BASED_COMPENSATION_Detai
SHARE BASED COMPENSATION (Details) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2013 | Apr. 30, 2005 | Oct. 31, 2007 | Apr. 30, 2005 | Mar. 31, 2014 | Jan. 07, 2008 | Mar. 31, 2014 | Jan. 07, 2008 | Mar. 31, 2014 | Jan. 07, 2008 | Mar. 31, 2014 | |
Options | Options | Options | Options | Options | Nonvested shares | 2005 Share incentive plan | 2005 Share incentive plan | 2005 Share incentive plan | 2005 Share incentive plan | 2008 Share incentive plan | 2008 Share incentive plan | 2008 Share incentive plan | 2008 Share incentive plan | 2008 Share incentive plan | 2008 Share incentive plan | |
USD ($) | USD ($) | USD ($) | CNY | USD ($) | item | Options | Options | Options | Options | Nonvested shares | Nonvested shares | |||||
employee | ||||||||||||||||
SHARE BASED COMPENSATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized | ' | ' | ' | ' | ' | ' | 2,894,000 | 3,310,300 | ' | ' | 336,307 | 2,354,149 | ' | ' | ' | ' |
Expiration term | ' | ' | ' | ' | ' | ' | '10 years | ' | '10 years | ' | '10 years | ' | '10 years | ' | ' | ' |
Annual increase in shares reserved (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 336,307 | ' | ' | ' | ' | ' |
Annual increase in shares reserved (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' |
Vesting rate on the first anniversary (as a percent) | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | 25.00% | ' | ' |
Vesting rate for remaining awards (as a percent) | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | 75.00% | ' | ' |
Vesting period for remaining 75% shares | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | '36 months | ' | ' | ' | '36 months | ' | ' |
Vesting rate (as a percent) at the end of each year from the grant date over 4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' |
Number of employees of whom vested share options' exercise period is extended upon resignation | ' | ' | 2 | 2 | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional compensation expense due to modifications recognized in the general and administrative expense | ' | ' | ' | 1,294,834 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | 2,747,342 | 2,788,342 | 2,788,342 | 3,262,650 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | 1,469,460 | 1,469,460 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | ' | ' | -27,864 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expired (in shares) | ' | -2,135 | -41,000 | -41,000 | -446,444 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in shares) | ' | 4,214,667 | 2,747,342 | 2,747,342 | 2,788,342 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest at the end of the period (in shares) | ' | 4,214,667 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in shares) | ' | 2,745,207 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | $2.84 | $2.85 | ' | $2.96 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | $2.50 | $2.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in dollars per share) | ' | ' | ' | ' | $3.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expired (in dollars per share) | ' | $2.69 | $3.60 | ' | $3.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars per share) | ' | $2.72 | $2.84 | ' | $2.85 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest at the end of the period (in dollars per share) | ' | $2.72 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in dollars per share) | ' | $2.84 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted remaining contractual Years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest at the end of the period | ' | '4 years 8 months 5 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period | ' | '2 years 1 month 2 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest at the end of the period (in dollars) | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in dollars) | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of options exercised (in dollars) | ' | $0 | $0 | ' | $28,775 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHARE_BASED_COMPENSATION_Detai1
SHARE BASED COMPENSATION (Details 2) (USD $) | 12 Months Ended |
Mar. 31, 2014 | |
Options outstanding at the end of the period | ' |
Number of Shares | 4,214,667 |
Exercise Price per Share (in dollars per share) | $2.72 |
Remaining Contractual Life | '4 years 8 months 5 days |
Options exercisable as of the end of the period | ' |
Number of Shares | 2,745,207 |
Exercise Price per Share (in dollars per share) | $2.84 |
Remaining Contractual Life | '2 years 1 month 2 days |
Exercise price one | ' |
Options outstanding at the end of the period | ' |
Number of Shares | 1,312,600 |
Exercise Price per Share (in dollars per share) | $2.26 |
Remaining Contractual Life | '1 year 1 month 6 days |
Options exercisable as of the end of the period | ' |
Number of Shares | 1,312,600 |
Exercise Price per Share (in dollars per share) | $2.26 |
Remaining Contractual Life | '1 year 1 month 6 days |
Exercise price two | ' |
Options outstanding at the end of the period | ' |
Number of Shares | 674,000 |
Exercise Price per Share (in dollars per share) | $3.60 |
Remaining Contractual Life | '1 year 8 months 12 days |
Options exercisable as of the end of the period | ' |
Number of Shares | 674,000 |
Exercise Price per Share (in dollars per share) | $3.60 |
Remaining Contractual Life | '1 year 8 months 12 days |
Exercise price three | ' |
Options outstanding at the end of the period | ' |
Number of Shares | 250,000 |
Exercise Price per Share (in dollars per share) | $3.60 |
Remaining Contractual Life | '2 years 7 months 6 days |
Options exercisable as of the end of the period | ' |
Number of Shares | 250,000 |
Exercise Price per Share (in dollars per share) | $3.60 |
Remaining Contractual Life | '2 years 7 months 6 days |
Exercise price four | ' |
Options outstanding at the end of the period | ' |
Number of Shares | 101,000 |
Exercise Price per Share (in dollars per share) | $3.60 |
Remaining Contractual Life | '3 years 8 months 12 days |
Options exercisable as of the end of the period | ' |
Number of Shares | 101,000 |
Exercise Price per Share (in dollars per share) | $3.60 |
Remaining Contractual Life | '3 years 8 months 12 days |
Exercise price five | ' |
Options outstanding at the end of the period | ' |
Number of Shares | 100,000 |
Exercise Price per Share (in dollars per share) | $4.75 |
Remaining Contractual Life | '3 years 6 months |
Options exercisable as of the end of the period | ' |
Number of Shares | 100,000 |
Exercise Price per Share (in dollars per share) | $4.75 |
Remaining Contractual Life | '3 years 6 months |
Exercise price six | ' |
Options outstanding at the end of the period | ' |
Number of Shares | 7,607 |
Exercise Price per Share (in dollars per share) | $2.69 |
Remaining Contractual Life | '4 years 10 months 24 days |
Options exercisable as of the end of the period | ' |
Number of Shares | 7,607 |
Exercise Price per Share (in dollars per share) | $2.69 |
Remaining Contractual Life | '4 years 10 months 24 days |
Exercise price seven | ' |
Options outstanding at the end of the period | ' |
Number of Shares | 300,000 |
Exercise Price per Share (in dollars per share) | $2.12 |
Remaining Contractual Life | '6 years |
Options exercisable as of the end of the period | ' |
Number of Shares | 300,000 |
Exercise Price per Share (in dollars per share) | $2.12 |
Remaining Contractual Life | '6 years |
Exercise price eight | ' |
Options outstanding at the end of the period | ' |
Number of Shares | 1,469,460 |
Exercise Price per Share (in dollars per share) | $2.50 |
Remaining Contractual Life | '9 years 6 months |
Options exercisable as of the end of the period | ' |
Exercise Price per Share (in dollars per share) | $2.50 |
Remaining Contractual Life | '9 years 6 months |
SHARE_BASED_COMPENSATION_Detai2
SHARE BASED COMPENSATION (Details 3) (Options) | 12 Months Ended |
Mar. 31, 2014 | |
Options | ' |
Assumptions used in the valuation model | ' |
Expected dividend yield (as a percent) | 0.00% |
Expected volatility (as a percent) | 75.00% |
Expected term | '6 years 3 months |
Risk-free interest rate (as a percent) | 1.77% |
SHARE_BASED_COMPENSATION_Detai3
SHARE BASED COMPENSATION (Details 4) (CNY) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Options | ' | ' | ' |
SHARE BASED COMPENSATION | ' | ' | ' |
Total share based compensation expense | 3,946,384 | 306,659 | 590,145 |
Total unrecognized compensation expense | 10,991,832 | ' | ' |
Weighted average period over which unrecognized compensation expense is expected to be recognized | '3 years 6 months 7 days | ' | ' |
Options | Sales and marketing | ' | ' | ' |
SHARE BASED COMPENSATION | ' | ' | ' |
Total share based compensation expense | ' | ' | 42,914 |
Options | General and administrative | ' | ' | ' |
SHARE BASED COMPENSATION | ' | ' | ' |
Total share based compensation expense | 3,946,384 | 306,659 | 547,231 |
Nonvested shares | ' | ' | ' |
SHARE BASED COMPENSATION | ' | ' | ' |
Total share based compensation expense | 6,588,526 | 11,272,563 | 11,674,252 |
Total unrecognized compensation expense | 5,051,565 | ' | ' |
Weighted average period over which unrecognized compensation expense is expected to be recognized | '2 years 2 months 5 days | ' | ' |
Nonvested shares | Cost of revenues | ' | ' | ' |
SHARE BASED COMPENSATION | ' | ' | ' |
Total share based compensation expense | 228,854 | 21,813 | 71,691 |
Nonvested shares | Research and development | ' | ' | ' |
SHARE BASED COMPENSATION | ' | ' | ' |
Total share based compensation expense | 336,869 | 308,577 | 189,462 |
Nonvested shares | Sales and marketing | ' | ' | ' |
SHARE BASED COMPENSATION | ' | ' | ' |
Total share based compensation expense | 454,503 | 702,683 | 344,226 |
Nonvested shares | General and administrative | ' | ' | ' |
SHARE BASED COMPENSATION | ' | ' | ' |
Total share based compensation expense | 5,568,300 | 10,239,490 | 11,068,873 |
SHARE_BASED_COMPENSATION_Detai4
SHARE BASED COMPENSATION (Details 5) | 12 Months Ended | |||||||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2012 | |
USD ($) | CNY | CNY | Nonvested shares | Nonvested shares | Nonvested shares | Nonvested shares | Nonvested shares | |
USD ($) | CNY | USD ($) | CNY | USD ($) | ||||
Number of shares | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | ' | 895,000 | 895,000 | 1,146,750 | 1,146,750 | 306,000 |
Granted (in shares) | ' | ' | ' | 280,000 | 280,000 | 100,000 | 100,000 | 1,060,000 |
Vested (in shares) | ' | ' | ' | -265,000 | -265,000 | -334,250 | -334,250 | -116,245 |
Forfeited (in shares) | ' | ' | ' | -100,000 | -100,000 | -17,500 | -17,500 | -103,005 |
Outstanding at the end of the period (in shares) | ' | ' | ' | 810,000 | 810,000 | 895,000 | 895,000 | 1,146,750 |
Weighted average grant date fair value | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | ' | ' | $4.63 | ' | $4.79 | ' | $2.95 |
Granted (in dollars per share) | ' | ' | ' | $2.15 | ' | $2.02 | ' | $4.96 |
Vested (in dollars per share) | ' | ' | ' | $4.96 | ' | ($4.35) | ' | $2.08 |
Forfeited (in dollars per share) | ' | ' | ' | $2.02 | ' | $1.90 | ' | $4.47 |
Outstanding at the end of the period (in dollars per share) | ' | ' | ' | $3.99 | ' | $4.63 | ' | $4.79 |
Additional disclosures | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value of shares vested (in dollars) | ' | ' | ' | $560,975 | ' | $829,077 | ' | $527,371 |
Number of vested shares reacquired upon vesting to satisfy the minimum tax withholding obligation | ' | ' | ' | 51,676 | 51,676 | 44,564 | 44,564 | ' |
Consideration to reacquire vested shares upon vesting to satisfy the minimum tax withholding obligation | $91,352 | 567,881 | 913,453 | ' | 567,881 | ' | 913,453 | ' |
COMMON_SHARES_Details
COMMON SHARES (Details) | 0 Months Ended | 12 Months Ended | |||
Nov. 01, 2012 | Nov. 13, 2008 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
USD ($) | USD ($) | CNY | CNY | ||
COMMON SHARES | ' | ' | ' | ' | ' |
Authorized amount to be repurchased (in dollars) | $5,000,000 | $5,000,000 | ' | ' | ' |
Shares repurchased | ' | ' | 10,678 | 26,440 | 0 |
Repurchase price | ' | ' | 132,528 | 329,357 | ' |
SPECIAL_CASH_DIVIDEND_Details
SPECIAL CASH DIVIDEND (Details) | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||
Aug. 07, 2012 | Jun. 01, 2011 | Sep. 30, 2012 | Sep. 30, 2012 | Aug. 31, 2011 | Aug. 31, 2011 | Mar. 31, 2013 | Mar. 31, 2012 | |
USD ($) | USD ($) | USD ($) | CNY | USD ($) | CNY | CNY | CNY | |
SPECIAL CASH DIVIDEND | ' | ' | ' | ' | ' | ' | ' | ' |
Special cash dividend declared per common share (in dollars per share) | $0.09 | $0.22 | ' | ' | ' | ' | ' | ' |
Special cash dividend declared per ADS (in dollars per share) | $0.17 | $0.43 | ' | ' | ' | ' | ' | ' |
Total amount of cash distributed in the dividend | ' | ' | $4,000,000 | 25,331,341 | $9,800,000 | 63,634,726 | 25,331,341 | 63,634,726 |
STATUTORY_RESERVES_Details
STATUTORY RESERVES (Details) (CNY) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
STATUTORY RESERVES | ' | ' |
Required percentage of after tax profit transferred to general reserve fund | 10.00% | ' |
Percentage of registered capital limit for transfer of after tax profit to general reserve fund | 50.00% | ' |
Appropriation of after tax profit to general reserve fund | 20,648,182 | 14,892,860 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (CNY) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Year ended March 31: | ' | ' | ' |
2015 | 13,098,314 | ' | ' |
2016 | 13,900,657 | ' | ' |
2017 | 9,496,776 | ' | ' |
2018 | 9,971,305 | ' | ' |
2019 | 10,467,905 | ' | ' |
Thereafter | 10,986,576 | ' | ' |
Total | 67,921,533 | ' | ' |
Rental expense for operating leases | 7,848,918 | 6,517,907 | 5,159,138 |
Minimum | ' | ' | ' |
Lease commitments | ' | ' | ' |
Operating lease term | '19 months | ' | ' |
Maximum | ' | ' | ' |
Lease commitments | ' | ' | ' |
Operating lease term | '6 years | ' | ' |
Year ended March 31: | ' | ' | ' |
Operating lease term which were not renewed | '1 month | ' | ' |
OPERATING_LEASES_Details
OPERATING LEASES (Details) (Building, CNY) | 0 Months Ended | 12 Months Ended |
Mar. 01, 2014 | Mar. 31, 2014 | |
item | ||
Building | ' | ' |
Operating leases | ' | ' |
Number of floor leased | 1 | ' |
Operating lease term | ' | '6 years |
Property on Operating Leases, gross | ' | 26,251,157 |
Less: Accumulated depreciation | ' | -4,156,433 |
Property and equipment, net | ' | 22,094,724 |
Future minimum rentals | ' | ' |
2015 | ' | 2,753,079 |
2016 | ' | 3,308,825 |
2017 | ' | 3,475,825 |
2018 | ' | 3,647,360 |
2019 | ' | 3,830,195 |
Thereafter | ' | 3,663,927 |
Total | ' | 20,679,211 |
EARNINGS_PER_COMMON_SHARE_Deta
EARNINGS PER COMMON SHARE (Details) | 12 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
USD ($) | CNY | CNY | CNY | |
Numerator: | ' | ' | ' | ' |
Net earnings | $4,387,817 | 27,276,435 | 23,207,990 | 55,841,470 |
Less: Dividends paid to participating securities | ' | ' | -525,049 | -1,476,269 |
Net earnings attributable to participating securities | ' | -509,201 | ' | ' |
Net earnings available to common shareholders | ' | 26,767,234 | 22,682,941 | 54,365,201 |
Denominator for basic earnings per share: | ' | ' | ' | ' |
Weighted average common shares outstanding | 45,227,159 | 45,227,159 | 44,967,823 | 44,713,418 |
Plus: Incremental shares issuable upon exercise of share options | 4,396 | 4,396 | 147,794 | 951,469 |
Denominator for diluted earnings per share | 45,231,555 | 45,231,555 | 45,115,617 | 45,664,887 |
Basic earnings per common share | $0.10 | 0.59 | 0.5 | 1.22 |
Diluted earnings per common share | $0.10 | 0.59 | 0.5 | 1.19 |
Shares issuable under share options | 3,914,667 | 3,914,667 | 1,134,742 | 100,000 |
ACQUISITION_Details
ACQUISITION (Details) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Nov. 02, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 |
USD ($) | CNY | CNY | Xing Wei Group | Xing Wei Group | Xing Wei Group | Xing Wei Group | Xing Wei Group | Xing Wei Group | Xing Wei Group | Xing Wei Group | |
USD ($) | USD ($) | CNY | CNY | CNY | CNY | Training platform | Contracts in progress | ||||
CNY | CNY | ||||||||||
Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash consideration | ' | ' | ' | ' | $3,190,000 | 19,612,120 | ' | ' | ' | ' | ' |
Cash paid | ' | ' | ' | 3,190,000 | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | 305,607 | ' | ' | ' | ' |
Net loss | ' | ' | ' | ' | ' | ' | 1,702,306 | ' | ' | ' | ' |
Pro forma | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | 386,386,238 | 367,598,801 | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | 23,342,382 | 20,640,931 | ' | ' |
Additional disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition related costs | ' | ' | ' | ' | ' | ' | ' | 676,237 | ' | ' | ' |
Fair value of consideration transferred: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | ' | 3,190,000 | 19,612,120 | ' | ' | ' | ' | ' |
Fair values of identifiable assets acquired and liabilities assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | ' | ' | 9,785,414 | ' | ' | ' | ' | ' |
Accounts receivable and other current assets | ' | ' | ' | ' | ' | 710,300 | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' | 165,168 | ' | ' | ' | ' | ' |
Intangible asset | ' | ' | ' | ' | ' | ' | ' | ' | ' | 422,700 | 1,225,380 |
Accrued expenses and other current liabilities | ' | ' | ' | ' | ' | -285,894 | ' | ' | ' | ' | ' |
Total identifiable net assets | ' | ' | ' | ' | ' | 12,023,068 | ' | ' | ' | ' | ' |
Goodwill | 4,988,724 | 31,011,902 | 23,422,850 | ' | ' | 7,589,052 | ' | ' | ' | ' | ' |
Total identifiable assets acquired and liabilities assumed, including goodwill | ' | ' | ' | ' | ' | 19,612,120 | ' | ' | ' | ' | ' |
ATA_INC_Parent_Company_Details
ATA INC (Parent Company) (Details) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 |
USD ($) | CNY | CNY | CNY | CNY | ATA INC. | ATA INC. | ATA INC. | ATA INC. | ATA INC. | ATA INC. | |
USD ($) | CNY | USD ($) | CNY | CNY | CNY | ||||||
Condensed Financial Statements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | ' | ' | $1,500,457 | 9,327,438 | $6,715,243 | 41,744,636 | 48,532,826 | 116,818,694 |
Prepaid expenses and other current assets | 2,427,880 | 15,092,674 | 13,625,663 | ' | ' | 28,083 | 174,575 | ' | 464,873 | ' | ' |
Investments in subsidiaries | ' | ' | ' | ' | ' | 64,912,599 | 403,522,684 | ' | 334,415,959 | ' | ' |
Total assets | 79,022,702 | 491,236,724 | 457,818,481 | ' | ' | 66,441,139 | 413,024,697 | ' | 376,625,468 | ' | ' |
Accrued expenses and other current liabilities | 11,062,052 | 68,766,143 | 72,191,260 | ' | ' | 182,231 | 1,132,825 | ' | 1,077,749 | ' | ' |
Total liabilities | 12,763,794 | 79,344,852 | 82,270,762 | ' | ' | 182,231 | 1,132,825 | ' | 1,077,749 | ' | ' |
Common shares | 558,988 | 3,474,894 | 3,461,060 | ' | ' | 558,988 | 3,474,894 | ' | 3,461,060 | ' | ' |
Treasury shares | -165,653 | -1,029,766 | -329,357 | ' | ' | -165,653 | -1,029,766 | ' | -329,357 | ' | ' |
Additional paid in capital | 70,453,120 | 437,964,776 | 427,443,700 | ' | ' | 70,453,120 | 437,964,776 | ' | 427,443,700 | ' | ' |
Accumulated other comprehensive loss | -4,366,825 | -27,145,929 | -26,379,146 | ' | ' | -4,366,825 | -27,145,929 | ' | -26,379,146 | ' | ' |
Accumulated deficit | -220,722 | -1,372,103 | -28,648,538 | ' | ' | -220,722 | -1,372,103 | ' | -28,648,538 | ' | ' |
Total shareholders' equity | 66,258,908 | 411,891,872 | 375,547,719 | 366,414,571 | 364,063,000 | 66,258,908 | 411,891,872 | ' | 375,547,719 | ' | ' |
Total liabilities and shareholders' equity | $79,022,702 | 491,236,724 | 457,818,481 | ' | ' | $66,441,139 | 413,024,697 | ' | 376,625,468 | ' | ' |
ATA_INC_Parent_Company_Details1
ATA INC (Parent Company) (Details 2) | 12 Months Ended | |||||||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
USD ($) | CNY | CNY | CNY | ATA INC. | ATA INC. | ATA INC. | ATA INC. | |
USD ($) | CNY | CNY | CNY | |||||
Condensed Financial Statements | ' | ' | ' | ' | ' | ' | ' | ' |
Operating expenses | ($24,903,387) | -154,809,412 | -150,830,194 | -128,781,530 | ($871,124) | -5,415,249 | -7,567,474 | -7,487,523 |
Investment income | ' | ' | ' | ' | 5,246,250 | 32,612,787 | 30,685,632 | 60,175,402 |
Interest income | 767,329 | 4,770,024 | 3,122,304 | 2,061,020 | 6,578 | 40,889 | 112,656 | 377,333 |
Foreign currency exchange gains (losses), net | -7,915 | -49,200 | 77,240 | 3,633,543 | 6,113 | 38,008 | -22,824 | 2,776,258 |
Earnings before income taxes | 7,588,297 | 47,171,897 | 30,212,972 | 70,180,552 | 4,387,817 | 27,276,435 | 23,207,990 | 55,841,470 |
Income tax expense | 3,200,480 | 19,895,462 | 7,004,982 | 14,339,082 | ' | ' | ' | ' |
Net income | 4,387,817 | 27,276,435 | 23,207,990 | 55,841,470 | 4,387,817 | 27,276,435 | 23,207,990 | 55,841,470 |
Foreign currency translation adjustment, net of nil income taxes | -123,348 | -766,783 | -374,747 | -3,787,210 | -123,348 | -766,783 | -374,747 | -3,787,210 |
Comprehensive income | $4,264,469 | 26,509,652 | 22,833,243 | 52,054,260 | $4,264,469 | 26,509,652 | 22,833,243 | 52,054,260 |
ATA_INC_Parent_Company_Details2
ATA INC (Parent Company) (Details 3) | 1 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2012 | Sep. 30, 2012 | Aug. 31, 2011 | Aug. 31, 2011 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | CNY | CNY | ATA INC. | ATA INC. | ATA INC. | ATA INC. | |
USD ($) | CNY | CNY | CNY | |||||||||
Condensed Financial Statements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash used in operating activities | ' | ' | ' | ' | $6,007,296 | 37,343,760 | 67,777,743 | 59,352,866 | ($803,449) | -4,994,557 | -6,675,424 | -4,529,639 |
Cash flows from investing activities : | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collection from (payment to) subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -1,111,770 | -6,911,210 | 26,836,132 | 1,140,127 |
Payment for XingWei acquisition | ' | ' | ' | ' | -1,580,771 | -9,826,706 | ' | ' | -3,154,900 | -19,612,120 | ' | ' |
Net cash used in investing activities | ' | ' | ' | ' | -2,245,541 | -13,959,185 | -7,966,826 | -5,347,008 | -4,266,670 | -26,523,330 | 26,836,132 | 1,140,127 |
Cash flows from financing activities : | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from exercise of share options | ' | ' | ' | ' | ' | ' | ' | 631,844 | ' | ' | ' | 631,844 |
Cash paid for employee individual income tax of net-settlement of vested shares | ' | ' | ' | ' | -91,352 | -567,881 | -913,453 | ' | ' | ' | -913,453 | ' |
Cash paid for repurchase of common shares | ' | ' | ' | ' | -21,319 | -132,528 | -329,357 | ' | -21,319 | -132,528 | -329,357 | ' |
Collection of receivable from shareholders | ' | ' | ' | ' | ' | ' | ' | 1,035,796 | ' | ' | ' | 1,035,796 |
Special cash dividend | -4,000,000 | -25,331,341 | -9,800,000 | -63,634,726 | ' | ' | -25,331,341 | -63,634,726 | ' | ' | -25,331,341 | -63,634,726 |
Net cash used in financing activities | ' | ' | ' | ' | -112,671 | -700,409 | -26,574,151 | -61,967,086 | -21,319 | -132,528 | -26,574,151 | -61,967,086 |
Effect of foreign exchange rate changes on cash | ' | ' | ' | ' | -123,348 | -766,783 | -374,747 | -2,929,270 | -123,348 | -766,783 | -374,747 | -2,929,270 |
Net decrease in cash | ' | ' | ' | ' | 3,525,736 | 21,917,383 | 32,862,019 | -10,890,498 | -5,214,786 | -32,417,198 | -6,788,190 | -68,285,868 |
Cash at beginning of year | ' | ' | ' | ' | ' | ' | ' | ' | 6,715,243 | 41,744,636 | 48,532,826 | 116,818,694 |
Cash at end of year | ' | ' | ' | ' | ' | ' | ' | ' | $1,500,457 | 9,327,438 | 41,744,636 | 48,532,826 |
SUBSEQUENT_EVENT_Details
SUBSEQUENT EVENT (Details) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | ||||||
Aug. 07, 2012 | Jun. 01, 2011 | Sep. 30, 2012 | Sep. 30, 2012 | Aug. 31, 2011 | Aug. 31, 2011 | Mar. 31, 2013 | Mar. 31, 2012 | 30-May-14 | 30-May-14 | |
USD ($) | USD ($) | USD ($) | CNY | USD ($) | CNY | CNY | CNY | Subsequent Event | Subsequent Event | |
USD ($) | Future | |||||||||
USD ($) | ||||||||||
Subsequent event | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special cash dividend declared per common share (in dollars per share) | $0.09 | $0.22 | ' | ' | ' | ' | ' | ' | $0.21 | ' |
Special cash dividend declared per ADS (in dollars per share) | $0.17 | $0.43 | ' | ' | ' | ' | ' | ' | $0.41 | ' |
Total amount of cash distributed in the dividend | ' | ' | $4,000,000 | 25,331,341 | $9,800,000 | 63,634,726 | 25,331,341 | 63,634,726 | ' | $10,000,000 |