BORROWINGS FROM FINANCIAL INSTITUTIONS, CURRENT AND NONCURRENT

9 Months Ended

Dec. 31, 2019

BORROWINGS FROM FINANCIAL INSTITUTIONS CURRENT AND NONCURRENT

BORROWINGS FROM FINANCIAL INSTITUTIONS, CURRENT AND NONCURRENT

11.    BORROWINGS FROM FINANCIAL INSTITUTIONS, CURRENT AND NONCURRENT

(i)   Borrowings from Financial institutions

The borrowings from certain financial institutions represented the difference between the actual proceeds disbursed by the financial institutions to Jinkailong and the total principal to be responsible for and repaid by the automobile purchasers. Such borrowings totaled $252,944 and $396,946 bearing interest rates ranging between 6.2% and 8.1% per  annum at December 31, 2019 and March 31, 2019, respectively, of which $41,696 and $177,789, respectively, is to be repaid over a period of 13 to 24 months.

The interest expense for the three months ended December 31, 2019 and 2018 was $16,498 and $2,993, respectively. The interest expense for the nine months ended December  31, 2019 and 2018 was $37,827 and $2,993, respectively.

(ii)  Credit line

On August 17, 2018, Hunan Riuxi signed an intention agreement of credit line with Bank of Changsha Co., Ltd. ("Changsha Bank"). Pursuant to the agreement, Changsha Bank has granted Hunan Ruixi a credit line up to approximately RMB400 million (approximately USD56.2 million) within a term of 24 months from August 17, 2018 to August 17, 2020. As of the date of the issuance of these financial statements, Hunan Ruixi has not used any portion of the credit line.