45 item 9a . controls and procedures evaluation of disclosure controls and procedures the company maintains disclosure controls and procedures ( as such term is defined in rules 13a-15 ( e ) and 15d  15 ( e ) under the securities exchange act story_separator_special_tag the following discussion of the company 's operations and financial condition should be read in conjunction with the financial statements and notes thereto included elsewhere in this annual report on form 10-k. special note : certain statements set forth below constitute forward-looking statements made pursuant to the safe harbor provisions of the private securities litigation reform act of 1995. see item 1a  risk factors  forward-looking information. in the following discussions , most percentages and dollar amounts have been rounded to aid presentation . as a result , all figures are approximations . 18 results of operations : the following table summarizes certain financial information for the fiscal years ended march 31 ( in thousands ) : replace_table_token_4_th results of operations  fiscal 2012 compared with fiscal 2011 net product sales  net product sales for fiscal 2012 were $ 157.0 million as compared to $ 193.5 million for fiscal 2011 , a decrease of $ 36.5 million , or 18.9 % . the company 's sales during fiscal 2012 and 2011 were highly concentrated among the company 's two largest customers , where gross product sales comprised approximately 90.3 % and 90.5 % , respectively , of the company 's total gross product sales . net product sales may be periodically impacted by adjustments made to the company 's sales allowance and marketing support accrual to record unanticipated customer deductions from accounts receivable or to reduce the accrual by any amounts which were accrued in the past but not taken by customers through deductions from accounts receivable within a certain time period . in the aggregate , these adjustments had the effect of increasing net product sales and operating income by $ 1.0 million and $ 0.7 million for fiscal 2012 and fiscal 2011 , respectively . net product sales are comprised primarily of the sales of houseware and audio products which bear the emerson® brand name . the major elements which contributed to the overall decrease in net product sales were as follows : i ) houseware product net sales decreased $ 31.6 million , or 17.7 % , to $ 146.4 million in fiscal 2012 as compared to $ 178.0 million in fiscal 2011 , on decreased net sales of microwave ovens , which resulted from the discontinuation of one model by one of the company 's largest retail customers beginning in december 2010 , toaster ovens , wine coolers and coffee makers , partially offset by increased net sales of compact refrigerators ; and ii ) audio product net sales were $ 10.6 million in fiscal 2012 compared to $ 15.6 million in fiscal 2011 , a decrease of $ 5.0 million , or 32.2 % , resulting from decreased net sales of the company 's portable audio and clock radio product offerings . licensing revenue  licensing revenue in fiscal 2012 was $ 6.3 million as compared to $ 7.3 million for fiscal 2011 , a decrease of $ 1.0 million , or 14.2 % , due to lower year-over-year sales by the company 's licensees of branded products under license from the company and fewer active licensees during fiscal 2012 as compared to fiscal 2011. the company 's largest license agreement is with funai corporation , inc. ( funai ) , which accounts for approximately 75 % of the company 's total licensing revenue , and which expires december 31 , 2012 unless renewed . the agreement provides that funai will manufacture , market , sell and distribute specified products bearing the emerson® trademark to customers in the u.s. and canadian markets . under the terms of the agreement , the company receives non-refundable minimum annual royalty payments of $ 3.75 million each calendar year and a license fee on sales of product subject to the agreement in excess of the minimum annual royalties . during fiscal 2012 and 2011 , revenues of $ 4.7 million and $ 5.3 million , respectively , were earned under this agreement . net revenues  as a result of the foregoing factors , the company 's net revenues were $ 163.3 million for fiscal 2012 as compared to $ 200.8 million for fiscal 2011 , a decrease of 37.5 million , or 18.7 % . 19 cost of sales  cost of sales includes those components as described in note 1 cost of sales of the notes to the consolidated financial statements . in absolute terms , cost of sales decreased $ 30.6 million , or 17.7 % , to $ 142.3 million in fiscal 2012 as compared to $ 172.9 million in fiscal 2011. cost of sales , as a percentage of net revenues , was 87.1 % in fiscal 2012 as compared to 86.1 % in fiscal 2011. cost of sales as a percentage of net product sales was 90.6 % in fiscal 2012 as compared to 89.4 % in fiscal 2011. the decrease in absolute terms for fiscal 2012 as compared to fiscal 2011 was primarily related to the reduced net product sales and a year-over-year reduction in the inventory valuation reserve , partially offset by higher inventory writedowns and higher quality control costs . other operating costs and expenses  other operating costs and expenses include those components as described in note 1 other operating costs and expenses of the notes to the consolidated financial statements . story_separator_special_tag sales allowances , marketing support programs , promotions and other volume-based incentives which are provided to retailers and distributors are accounted for on an accrual basis as a reduction to net revenues in the period in which the related sales are recognized in accordance with asc topic 605 , revenue recognition , subtopic 50 customer payments and incentives and securities and exchange commission staff accounting bulletins 101 revenue recognition in financial statements ,  and 104 revenue recognition , corrected copy ( sab 's 101 and 104 ) . at the time of sale , the company reduces recognized gross revenue by allowances to cover , in addition to estimated sales returns as required by asc topic 605 , revenue recognition. , subtopic 15 products , ( i ) sales incentives offered to customers that meet the criteria for accrual under asc topic 605 , subtopic 50 and ( ii ) under sab 's 101 and 104 , an estimated amount to recognize additional non-offered deductions it anticipates and can reasonably estimate will be taken by customers which it does not expect to recover . accruals for the estimated amount of future non-offered deductions are required to be made as contra-revenue items because that percentage of shipped revenue fails to meet the collectability criteria within sab 104 's and 101 's four revenue recognition criteria , all of which are required to be met in order to recognize revenue . if additional marketing support programs , promotions and other volume-based incentives are required to promote the company 's products subsequent to the initial sale , then additional reserves may be required and are accrued for when such support is offered . recently-issued financial accounting pronouncements the following accounting standards updates ( asus ) were issued by the financial accounting standards board during the twelve months ended march 31 , 2012 which relate to or could relate to the company as concerns the company 's normal ongoing operations or the industry in which the company operates : accounting standards update 2011-02 , receivables ( topic 310 ) : a creditor 's determination of whether a restructuring is a troubled debt restructuring ( issued april 2011 ) the amendments in this update would provide additional guidance to assist creditors in determining whether a restructuring of a receivable meets the criteria to be considered a troubled debt restructuring . for public entities , the amendments in this update are effective for the first interim or annual period beginning on or after june 15 , 2011 , and should be applied retrospectively to the beginning of the annual period of adoption . accounting standards update 2011-04 , fair value measurement ( topic 820 ) : amendments to achieve common fair value measurement and disclosure requirements in u.s. gaap and ifrss ( issued may 2011 ) the amendments in this update generally represent clarifications of topic 820  fair measurement and disclosures , but also include some instances where a particular principle or requirement for measuring fair value or disclosing information about fair value measurements has changed . this update results in common principles and requirements for measuring fair value and for disclosing information about fair value measurements in accordance with u.s. gaap and ifrss . the amendments in this update are to be applied prospectively . for public entities , the amendments are effective during interim and annual periods beginning after december 15 , 2011. early application by public entities is not permitted . 23 accounting standards update 2011-05 , comprehensive income ( topic 220 ) : presentation of comprehensive income ( issued june 2011 ) the amendments in this update require that all non-owner changes in stockholders ' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements . in the two-statement approach , the first statement should present total net income and its components followed consecutively by a second statement that should present total other comprehensive income , the components of other comprehensive income , and the total of comprehensive income . the amendments in this update should be applied retrospectively . for public entities , the amendments are effective for fiscal years , and interim periods within those years , beginning after december 15 , 2011. early adoption is permitted , because compliance with the amendments is already permitted . the amendments do not require any transition disclosures . the company has not chosen to early adopt the provisions of this update . accounting standards update 2011-08 , intangiblesgoodwill and other ( topic 350 ) : testing goodwill for impairment ( issued september 2011 ) the objective of this update is to simplify how entities , both public and nonpublic , test goodwill for impairment . the amendments in the update permit an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in topic 350. the more-likely-than-not threshold is defined as having a likelihood of more than 50 percent . the amendments are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after december 15 , 2011. early adoption is permitted , including for annual and interim goodwill impairment tests performed as of a date before september 15 , 2011 , if an entity 's financial statements for the most recent annual or interim period have not yet been issued or , for nonpublic entities , have not yet been made available for issuance . the company has not chosen to early adopt the provisions of this update . the company has no goodwill on its books . accounting standards update 2011-12 , comprehensive income ( topic 220 ) : deferral of the effective date for amendments to the presentation of reclassifications of items out of accumulated other comprehensive income in

liquidity and capital resources general as of march 31 , 2012 , the company had cash and cash equivalents of approximately $ 45.0 million as compared to approximately $ 39.8 million at march 31 , 2011. working capital increased to $ 64.4 million at march 31 , 2012 as compared to $ 51.0 million at march 31 , 2011. the increase in cash and cash equivalents of approximately $ 5.2 million was due to the below factors . net cash used by operating activities was approximately $ 0.2 million for fiscal 2012 , primarily resulting from the net income of $ 10.6 million and a reduction in deferred tax assets of $ 1.4 million , partially offset by reductions in accounts payable and other current liabilities of $ 5.3 million , decreases in asset allowances of $ 2.6 million , increases in prepaid expenses and other current assets of $ 2.3 million , an increase in inventory of $ 0.8 million , and an increase in accounts receivable of $ 0.6 million . net cash provided by investing activities was $ 7.8 million for fiscal 2012 , primarily due to the sale by the company in may 2011 of its last remaining auction rate security ( see note 11  marketable securities ) , and the sale of its headquarters building in december 2011. net cash used by financing activities was $ 2.5 million for fiscal 2012 , resulting from the $ 2.5 million payoff of the company 's short term loan upon the sale by the company in may 2011 of its last remaining auction rate security ( see note 11  marketable securities ) . other events and circumstances pertaining to liquidity on may 31 , 2011 , upon application of a major creditor , the high court of hong kong appointed provisional liquidators over grande , which is the company 's controlling stockholder . following the appointment of the provisional liquidators over grande , certain major factory suppliers , including midea , have significantly reduced the maximum amount of open credit lines available to the company .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources general as of march 31 , 2012 , the company had cash and cash equivalents of approximately $ 45.0 million as compared to approximately $ 39.8 million at march 31 , 2011. working capital increased to $ 64.4 million at march 31 , 2012 as compared to $ 51.0 million at march 31 , 2011. the increase in cash and cash equivalents of approximately $ 5.2 million was due to the below factors . net cash used by operating activities was approximately $ 0.2 million for fiscal 2012 , primarily resulting from the net income of $ 10.6 million and a reduction in deferred tax assets of $ 1.4 million , partially offset by reductions in accounts payable and other current liabilities of $ 5.3 million , decreases in asset allowances of $ 2.6 million , increases in prepaid expenses and other current assets of $ 2.3 million , an increase in inventory of $ 0.8 million , and an increase in accounts receivable of $ 0.6 million . net cash provided by investing activities was $ 7.8 million for fiscal 2012 , primarily due to the sale by the company in may 2011 of its last remaining auction rate security ( see note 11  marketable securities ) , and the sale of its headquarters building in december 2011. net cash used by financing activities was $ 2.5 million for fiscal 2012 , resulting from the $ 2.5 million payoff of the company 's short term loan upon the sale by the company in may 2011 of its last remaining auction rate security ( see note 11  marketable securities ) . other events and circumstances pertaining to liquidity on may 31 , 2011 , upon application of a major creditor , the high court of hong kong appointed provisional liquidators over grande , which is the company 's controlling stockholder . following the appointment of the provisional liquidators over grande , certain major factory suppliers , including midea , have significantly reduced the maximum amount of open credit lines available to the company .
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 Suspicious Activity Report : 45 item 9a . controls and procedures evaluation of disclosure controls and procedures the company maintains disclosure controls and procedures ( as such term is defined in rules 13a-15 ( e ) and 15d  15 ( e ) under the securities exchange act story_separator_special_tag the following discussion of the company 's operations and financial condition should be read in conjunction with the financial statements and notes thereto included elsewhere in this annual report on form 10-k. special note : certain statements set forth below constitute forward-looking statements made pursuant to the safe harbor provisions of the private securities litigation reform act of 1995. see item 1a  risk factors  forward-looking information. in the following discussions , most percentages and dollar amounts have been rounded to aid presentation . as a result , all figures are approximations . 18 results of operations : the following table summarizes certain financial information for the fiscal years ended march 31 ( in thousands ) : replace_table_token_4_th results of operations  fiscal 2012 compared with fiscal 2011 net product sales  net product sales for fiscal 2012 were $ 157.0 million as compared to $ 193.5 million for fiscal 2011 , a decrease of $ 36.5 million , or 18.9 % . the company 's sales during fiscal 2012 and 2011 were highly concentrated among the company 's two largest customers , where gross product sales comprised approximately 90.3 % and 90.5 % , respectively , of the company 's total gross product sales . net product sales may be periodically impacted by adjustments made to the company 's sales allowance and marketing support accrual to record unanticipated customer deductions from accounts receivable or to reduce the accrual by any amounts which were accrued in the past but not taken by customers through deductions from accounts receivable within a certain time period . in the aggregate , these adjustments had the effect of increasing net product sales and operating income by $ 1.0 million and $ 0.7 million for fiscal 2012 and fiscal 2011 , respectively . net product sales are comprised primarily of the sales of houseware and audio products which bear the emerson® brand name . the major elements which contributed to the overall decrease in net product sales were as follows : i ) houseware product net sales decreased $ 31.6 million , or 17.7 % , to $ 146.4 million in fiscal 2012 as compared to $ 178.0 million in fiscal 2011 , on decreased net sales of microwave ovens , which resulted from the discontinuation of one model by one of the company 's largest retail customers beginning in december 2010 , toaster ovens , wine coolers and coffee makers , partially offset by increased net sales of compact refrigerators ; and ii ) audio product net sales were $ 10.6 million in fiscal 2012 compared to $ 15.6 million in fiscal 2011 , a decrease of $ 5.0 million , or 32.2 % , resulting from decreased net sales of the company 's portable audio and clock radio product offerings . licensing revenue  licensing revenue in fiscal 2012 was $ 6.3 million as compared to $ 7.3 million for fiscal 2011 , a decrease of $ 1.0 million , or 14.2 % , due to lower year-over-year sales by the company 's licensees of branded products under license from the company and fewer active licensees during fiscal 2012 as compared to fiscal 2011. the company 's largest license agreement is with funai corporation , inc. ( funai ) , which accounts for approximately 75 % of the company 's total licensing revenue , and which expires december 31 , 2012 unless renewed . the agreement provides that funai will manufacture , market , sell and distribute specified products bearing the emerson® trademark to customers in the u.s. and canadian markets . under the terms of the agreement , the company receives non-refundable minimum annual royalty payments of $ 3.75 million each calendar year and a license fee on sales of product subject to the agreement in excess of the minimum annual royalties . during fiscal 2012 and 2011 , revenues of $ 4.7 million and $ 5.3 million , respectively , were earned under this agreement . net revenues  as a result of the foregoing factors , the company 's net revenues were $ 163.3 million for fiscal 2012 as compared to $ 200.8 million for fiscal 2011 , a decrease of 37.5 million , or 18.7 % . 19 cost of sales  cost of sales includes those components as described in note 1 cost of sales of the notes to the consolidated financial statements . in absolute terms , cost of sales decreased $ 30.6 million , or 17.7 % , to $ 142.3 million in fiscal 2012 as compared to $ 172.9 million in fiscal 2011. cost of sales , as a percentage of net revenues , was 87.1 % in fiscal 2012 as compared to 86.1 % in fiscal 2011. cost of sales as a percentage of net product sales was 90.6 % in fiscal 2012 as compared to 89.4 % in fiscal 2011. the decrease in absolute terms for fiscal 2012 as compared to fiscal 2011 was primarily related to the reduced net product sales and a year-over-year reduction in the inventory valuation reserve , partially offset by higher inventory writedowns and higher quality control costs . other operating costs and expenses  other operating costs and expenses include those components as described in note 1 other operating costs and expenses of the notes to the consolidated financial statements . story_separator_special_tag sales allowances , marketing support programs , promotions and other volume-based incentives which are provided to retailers and distributors are accounted for on an accrual basis as a reduction to net revenues in the period in which the related sales are recognized in accordance with asc topic 605 , revenue recognition , subtopic 50 customer payments and incentives and securities and exchange commission staff accounting bulletins 101 revenue recognition in financial statements ,  and 104 revenue recognition , corrected copy ( sab 's 101 and 104 ) . at the time of sale , the company reduces recognized gross revenue by allowances to cover , in addition to estimated sales returns as required by asc topic 605 , revenue recognition. , subtopic 15 products , ( i ) sales incentives offered to customers that meet the criteria for accrual under asc topic 605 , subtopic 50 and ( ii ) under sab 's 101 and 104 , an estimated amount to recognize additional non-offered deductions it anticipates and can reasonably estimate will be taken by customers which it does not expect to recover . accruals for the estimated amount of future non-offered deductions are required to be made as contra-revenue items because that percentage of shipped revenue fails to meet the collectability criteria within sab 104 's and 101 's four revenue recognition criteria , all of which are required to be met in order to recognize revenue . if additional marketing support programs , promotions and other volume-based incentives are required to promote the company 's products subsequent to the initial sale , then additional reserves may be required and are accrued for when such support is offered . recently-issued financial accounting pronouncements the following accounting standards updates ( asus ) were issued by the financial accounting standards board during the twelve months ended march 31 , 2012 which relate to or could relate to the company as concerns the company 's normal ongoing operations or the industry in which the company operates : accounting standards update 2011-02 , receivables ( topic 310 ) : a creditor 's determination of whether a restructuring is a troubled debt restructuring ( issued april 2011 ) the amendments in this update would provide additional guidance to assist creditors in determining whether a restructuring of a receivable meets the criteria to be considered a troubled debt restructuring . for public entities , the amendments in this update are effective for the first interim or annual period beginning on or after june 15 , 2011 , and should be applied retrospectively to the beginning of the annual period of adoption . accounting standards update 2011-04 , fair value measurement ( topic 820 ) : amendments to achieve common fair value measurement and disclosure requirements in u.s. gaap and ifrss ( issued may 2011 ) the amendments in this update generally represent clarifications of topic 820  fair measurement and disclosures , but also include some instances where a particular principle or requirement for measuring fair value or disclosing information about fair value measurements has changed . this update results in common principles and requirements for measuring fair value and for disclosing information about fair value measurements in accordance with u.s. gaap and ifrss . the amendments in this update are to be applied prospectively . for public entities , the amendments are effective during interim and annual periods beginning after december 15 , 2011. early application by public entities is not permitted . 23 accounting standards update 2011-05 , comprehensive income ( topic 220 ) : presentation of comprehensive income ( issued june 2011 ) the amendments in this update require that all non-owner changes in stockholders ' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements . in the two-statement approach , the first statement should present total net income and its components followed consecutively by a second statement that should present total other comprehensive income , the components of other comprehensive income , and the total of comprehensive income . the amendments in this update should be applied retrospectively . for public entities , the amendments are effective for fiscal years , and interim periods within those years , beginning after december 15 , 2011. early adoption is permitted , because compliance with the amendments is already permitted . the amendments do not require any transition disclosures . the company has not chosen to early adopt the provisions of this update . accounting standards update 2011-08 , intangiblesgoodwill and other ( topic 350 ) : testing goodwill for impairment ( issued september 2011 ) the objective of this update is to simplify how entities , both public and nonpublic , test goodwill for impairment . the amendments in the update permit an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in topic 350. the more-likely-than-not threshold is defined as having a likelihood of more than 50 percent . the amendments are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after december 15 , 2011. early adoption is permitted , including for annual and interim goodwill impairment tests performed as of a date before september 15 , 2011 , if an entity 's financial statements for the most recent annual or interim period have not yet been issued or , for nonpublic entities , have not yet been made available for issuance . the company has not chosen to early adopt the provisions of this update . the company has no goodwill on its books . accounting standards update 2011-12 , comprehensive income ( topic 220 ) : deferral of the effective date for amendments to the presentation of reclassifications of items out of accumulated other comprehensive income in

