Related Party Transactions

12 Months Ended

Mar. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions

10. RELATED PARTY TRANSACTIONS

A related party is any party that controls, jointly controls or can significantly influence the management or operating policies of the Company. Such parties would also include affiliates, investments accounted for by the equity method, principal shareholders, management, directors and the immediate family members of principal shareholders, management or directors.

In addition to the transactions and balances detailed elsewhere in the consolidated financial statements for the fiscal years ended March 31, 2015, 2014 and 2013, the Company had the following material transactions with related parties during those years:

The Company incurred annual motor car rental expenses for the fiscal years ended March 31, 2015, 2014 and 2013 of approximately US$58,811, US$57,241 and US$57,245, respectively. These expenses were payable to a related company of which a shareholder is also director of Global-Tech in fiscal 2015, 2014 and 2013.

The Company incurred annual real estate rental expenses for the fiscal years ended March 31, 2015, 2014 and 2013 of approximately US$332,749, US$315,216 and US$346,662, respectively, payable to a director of Global-Tech and certain related companies of which one of their directors is also a director of Global-Tech. Included in the aforesaid annual real estate rental expenses were amounts of US$239,889, US$239,796 and US$239,811 paid to a director of Global-Tech, during the fiscal years ended March 31, 2015, 2014 and 2013, respectively, which were included in his remuneration for the respective fiscal years as housing allowances.

The amount due from a related party, of which one of the directors of Global-Tech was a shareholder as of March 31, 2015, 2014 and 2013, is unsecured, interest-free and has no fixed term of payment.