Short Term Bank Loans and Banking Facilities

12 Months Ended

Mar. 31, 2014

Short Term Bank Loans and Banking Facilities

14.	SHORT TERM BANK LOANS AND BANKING FACILITIES

Global-Tech has provided a bank with: (i) an unlimited corporate guarantee for general banking facilities granted to certain subsidiaries of the Company; and (ii) a security agreement over bank deposits and available-for-sale investments in aggregate of HK$10.0 million (equivalent to US$1,289,108) for general banking facilities granted to a subsidiary of the Company without obtaining written consent of the bank for general facilities granted to its Hong Kong subsidiaries. The Company has made deposits to banks as security for credit facilities granted to the PRC subsidiaries, including bank loans and bills payable.

The Company has credit facilities with a number of banks amounting to the equivalent of US$13,212,260 and US$15,880,533 as of March 31, 2014 and 2013 respectively. Of these amounts, HK$10.0 million (equivalent to US$1,289,108) and HK$10.0 million (equivalent to US$1,288,244) were denominated in Hong Kong dollars as of March 31, 2014 and 2013, respectively.

Of the credit facilities, the Company utilized HK$8,008,123 (equivalent to US$1,032,334) and RMB38,832,198 (equivalent to US$6,248,342) as of March 31, 2014 compared to US$4,826,241 and HK$10,599 (in total equivalent to US$4,827,607) utilized as of March 31, 2013.

Banking facilities of HK$1,991,877 (equivalent to US$256,775) and RMB35,267,802 (equivalent to US$5,674,809), and HK$9,989,401 (equivalent to US$1,286,878) and RMB60,661,802 (equivalent to US$9,766,048) remained unutilized as of March 31, 2014 and 2013, respectively.

The weighted average interest rate of the bank loans for the years ended March 31, 2014 and 2013 was 0.55% and 0.48% per annum respectively with an average maturity of 74 and 189 days from March 31, 2014 and 2013, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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