29.	CONDENSED FINANCIAL INFORMATION OF GLOBAL-TECH

Under the relevant PRC laws and regulations, the Company’s PRC subsidiaries (the “PRC Subsidiaries”) are restricted in their ability to transfer certain of their net assets to Global-Tech in the form of dividend payments, loans, or advances. The amounts restricted include net assets of the PRC Subsidiaries, as determined pursuant to PRC generally accepted accounting principles, totaling RMB311,667,606 (approximately US$50,144,200) as of March 31, 2014.

The following is the condensed financial information of Global-Tech on a stand-alone basis:

Balance sheets


	March 31, 2014			March 31, 2013
	US$			US$
ASSETS
Current assets:
Cash and cash equivalents		6,719,079			19,405,865
Time deposits		11,339,515			—
Available-for-sale investments		1,050,500			—
Prepaid expenses		17,803			46,903
Deposits and other assets		302,107			40,087

Total current assets		19,429,004			19,492,855
Interests in subsidiaries		46,474,157			55,812,262
Available-for-sale investments		—			1,045,200

Total assets		65,903,161			76,350,317

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Other accrued liabilities		113,158			92,114

Total liabilities		113,158			92,114

Shareholders’ equity:
Common stock, par value US$0.04 per share; 12,500,000 shares authorized; 3,233,814 and 3,230,814 shares issued as of March 31, 2014 and 2013		129,353			129,233
Preferred stock, par value US$0.04 per share; 250,000 shares authorized; no shares issued		—			—
Additional paid-in capital		85,103,910			85,053,402
Statutory reserves		1,340,229			1,238,361
Accumulated deficit		(26,590,366	)		(15,932,941	)
Accumulated other comprehensive income		10,854,689			10,709,740
Less: Treasury stock, at cost, 189,587 shares as of March 31, 2014 and 2013		(4,663,321	)		(4,663,321	)

Total Global-Tech Advanced Innovations Inc. shareholders’ equity		66,174,494			76,534,474
Non-controlling interests		(384,491	)		(276,271	)

Total equity		65,790,003			76,258,203

Total liabilities and shareholders’ equity		65,903,161			76,350,317

Statements of operations and comprehensive income


	Fiscal years ended March 31,
	2014			2013			2012
	US$			US$			US$
Net sales		—			—			—
Cost of goods sold		—			—			—

Gross profit		—			—			—
Selling, general and administrative expenses		(887,346	)		(1,071,502	)		(1,158,531	)

Operating loss		(887,346	)		(1,071,502	)		(1,158,531	)
Interest income, net		359,062			344,582			35,349
Equity in profits (losses) of subsidiaries		(7,308,381	)		(484,185	)		1,923,914
Other income (expense), net		(2,718,892	)		(752,196	)		609,945

Net income (loss) attributable to shareholders of Global-Tech Advanced Innovations Inc.		(10,555,557	)		(1,963,301	)		1,410,677
Other comprehensive income
Foreign currency translation adjustments		153,629			989,800			2,278,213
Release of unrealized loss on available-for-sale investments, net of income tax of nil, upon disposal		(13,980	)		—			—
Unrealized gain on available-for-sale investments, net of income tax of nil		5,300			22,495			23,957

Total comprehensive income (loss) attributable to shareholders of Global-Tech Advanced Innovations Inc.		(10,410,608	)		(951,006	)		3,712,847

Statements of cash flows


	Fiscal years ended March 31,
	2014			2013			2012
	US$			US$			US$
Cash flows from operating activities:
Net income (loss) attributable to shareholders of Global-Tech Advanced Innovations Inc.		(10,555,557	)		(1,963,301	)		1,410,677
Adjustments to reconcile net income (loss) attributable to shareholders of Global-Tech Advanced Innovations Inc. to net cash provided by operating activities:
Stock compensation expense		36,378			258,128			34,121
Shares issued to an employee		—			9,108			—
Equity in losses (profits) of subsidiaries		7,308,381			484,185			(1,923,914	)
Interest received from available-for-sale investments		—			—			(13	)
Changes in operating assets and liabilities:
Prepaid expenses		29,100			(3,693	)		(2,582	)
Deposits and other assets		(262,020	)		(15,364	)		4,969
Other accrued liabilities		21,044			(109,369	)		(26,324	)

Net cash used in operating activities		(3,422,674	)		(1,340,306	)		(503,066	)

Cash flows from investing activities:
Purchases of available-for-sale investments		—			—			(8,999,987	)
Proceeds from disposal of available-for-sale investments		—			2,000,000			9,000,000
Repayment of amounts due from (advances to) subsidiaries, net		2,061,153			910,372			13,091,819
Increase in time deposits		(11,339,515	)		—			—
Capital injection into subsidiaries		—			(1,107,753	)		(1,732,162	)

Net cash provided by investing activities		(9,278,362	)		1,802,619			11,359,670

Cash flows from financing activities:
Proceeds from stock options exercised		14,250			—			—
Cash dividend paid		—			(3,040,753	)		—

Net cash used in financing activities		14,250			(3,040,753	)		—

Net increase (decrease) in cash and cash equivalents		(12,686,786	)		(2,578,440	)		10,856,604
Cash and cash equivalents at beginning of fiscal year		19,405,865			21,984,305			11,127,701

Cash and cash equivalents at end of fiscal year		6,719,079			19,405,865			21,984,305

(a)	Basis of preparation

For the purposes of the preparation of the condensed financial information of Global-Tech, the Company records its interests in direct and indirect subsidiaries under the equity method of accounting as prescribed in FASB ASC 323 “Investments-Equity Method and Joint Ventures”. Such interests, together with the advances to subsidiaries, are presented as “Interests in subsidiaries” on the balance sheets and share of the subsidiaries’ income and losses is presented as “Equity in profits (losses) of subsidiaries” on the statements of operations and comprehensive income.

(b)	Commitments

Global-Tech has provided a letter of support to certain of its subsidiaries indicating its commitment to provide continuing financial support to those subsidiaries.