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 RMB281,595,535 (approximately US$45,378,125) as of March 31, 2015.

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

Balance sheets


	March 31, 2015			March 31, 2014
	US$			US$
ASSETS
Current assets:
Cash and cash equivalents		3,643,139			6,719,079
Time deposits		7,008,639			11,339,515
Restricted cash		5,000,000			—
Available-for-sale investments		—			1,050,500
Prepaid expenses		15,142			17,803
Deposits and other assets		47,388			302,107

Total current assets		15,714,308			19,429,004
Interests in subsidiaries		43,727,227			46,474,157

Total assets		59,441,535			65,903,161

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Other accrued liabilities		129,164			113,158

Total liabilities		129,164			113,158

Shareholders’ equity:
Common stock, par value US$0.04 per share; 12,500,000 shares authorized; 3,233,814 shares issued as of March 31, 2015 and 2014		129,353			129,353
Preferred stock, par value US$0.04 per share; 250,000 shares authorized; no shares issued		—			—
Additional paid-in capital		85,108,427			85,103,910
Statutory reserves		1,328,283			1,340,229
Accumulated deficit		(32,999,298	)		(26,590,366	)
Accumulated other comprehensive income		10,848,613			10,854,689
Less: Treasury stock, at cost, 189,587 shares as of March 31, 2015 and 2014		(4,663,321	)		(4,663,321	)

Total Global-Tech Advanced Innovations Inc. shareholders’ equity		59,752,057			66,174,494
Non-controlling interests		(439,686	)		(384,491	)

Total equity		59,312,371			65,790,003

Total liabilities and shareholders’ equity		59,441,535			65,903,161

Statements of operations and comprehensive income


	Fiscal years ended March 31,
	2015			2014			2013
	US$			US$			US$
Net sales		—			—			—
Cost of goods sold		—			—			—

Gross profit		—			—			—
Selling, general and administrative expenses		(758,350	)		(887,346	)		(1,071,502	)

Operating loss		(758,350	)		(887,346	)		(1,071,502	)
Interest income, net		401,895			359,062			344,582
Equity in losses of subsidiaries		(6,149,258	)		(7,308,381	)		(484,185	)
Other income (expense), net		84,835			(2,718,892	)		(752,196	)

Net loss attributable to shareholders of Global-Tech Advanced Innovations Inc.		(6,420,878	)		(10,555,557	)		(1,963,301	)
Other comprehensive income
Foreign currency translation adjustments		44,424			153,629			989,800
Release of unrealized loss on available-for-sale investments, net of income tax of nil, upon disposal		(50,500	)		(13,980	)		—
Unrealized gain on available-for-sale investments, net of income tax of nil		—			5,300			22,495

Total comprehensive loss attributable to shareholders of Global-Tech Advanced Innovations Inc.		(6,426,954	)		(10,410,608	)		(951,006	)

Statements of cash flows


	Fiscal years ended March 31,
	2015			2014			2013
	US$			US$			US$
Cash flows from operating activities:
Net loss attributable to shareholders of Global-Tech Advanced Innovations Inc.		(6,420,878	)		(10,555,557	)		(1,963,301	)
Adjustments to reconcile net loss attributable to shareholders of Global-Tech Advanced Innovations Inc. to net cash provided by operating activities:
Stock compensation expense		4,517			36,378			258,128
Shares issued to an employee		—			—			9,108
Equity in losses of subsidiaries		6,149,258			7,308,381			484,185
Changes in operating assets and liabilities:
Prepaid expenses		2,661			29,100			(3,693	)
Deposits and other assets		254,719			(262,020	)		(15,364	)
Other accrued liabilities		16,006			21,044			(109,369	)

Net cash provided by (used in) operating activities		6,283			(3,422,674	)		(1,340,306	)

Cash flows from investing activities:
Proceeds from disposal of available-for-sale investments		1,000,000			—			2,000,000
Repayment of amounts due from (advances to) subsidiaries, net		(3,413,099	)		2,061,153			910,372
Increase in time deposits		4,330,876			(11,339,515	)		—
Capital injection into subsidiaries		—			—			(1,107,753	)

Net cash provided by (used in) investing activities		1,917,777			(9,278,362	)		1,802,619

Cash flows from financing activities:
Proceeds from stock options exercised		—			14,250			—
Cash dividend paid		—			—			(3,040,753	)
Deposits of restricted cash		(5,000,000	)		—			—

Net cash provided by (used in) financing activities		(5,000,000	)		14,250			(3,040,753	)

Net decrease in cash and cash equivalents		(3,075,940	)		(12,686,786	)		(2,578,440	)
Cash and cash equivalents at beginning of fiscal year		6,719,079			19,405,865			21,984,305

Cash and cash equivalents at end of fiscal year		3,643,139			6,719,079			19,405,865

(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.