EFTA01366810.pdf

Amendment #4 Page 381 of 868 7:4.61r.st el t l 4 Government grants Fa the three months ended March 31, 2014 and 2015, US5214 representing the amortization of government grant of US516,715 related to the eaexnent purchased in ;mot years was credited against depreciation expense which is inckxled in cost of revenues in the condensed combined statements or comprehensive irtorne (loss) As d March 31. 2015, the balance of unamortizecl goverrvneM grant was US$12.999. of which the current Porten of USS858 was included in accrued expenses and Other current hatalhes, and the nonetrrent patron US512,143 was ncluded in other non-current kabala in be condensed combined balance sheep, respectively 6 Income taxes The effectste income tax rates for the three months ended March 31. 2014 and 2015 were 1% and -1%, ree4ectnely Tre eftectrve income tax rates la the area months ended March 31, 2014 and 2015 differ from the PRC statutory mare tax rate of 25% primarily Are to the combred effect of the valuation allowance on the deferred tax assets d the PRC operating entities and the Hong Kong enobes not stead to ircorne tax 6 Bank loans Long-term Dank loans corset of the following DIICOMIS 31 Mach 31 2014 2016 USS LISS Long-term bank loans Loans from Starclard Chartered Bank 37,265 36,310 Loans from Mesheng Bank V 345 32,223 88,533 Len Le current portico 61 9.S (41 :5 610 14) 1.12 Taal longterm bark loans, excludng currenApation 28,038 27,990 As of March 31, 2015, there was no weed interest to Gina klMoreno Bank The principal of 0554 moron, USS5 rTheiOn USS5 melon. 1555 Milian. USES Melon, USS6 melon, and US$2 melon we be repaid in 2015, 2018, 2017, 2018, 2019. 2020 and 2021, respectively In March 2011, Hor4on Baotou and Hendon *linguae entered ran an 12-month RMEI382 million (US359 moron) loan agreement with Standard Chartered Bark at a floating merest rate of the one-to three-year RIM benchmark loan rates as published by PBOC aka an additional surcharge of 15%-70% of the interest rate per annum As Hendon Baotou and l-lorston Ximguole failed to repay We loan on the original rretunly dale. the oastanding loan principal and interest of RMB2133 million (US$46 mitten) was extended to Jury 2015 and the interest rate was based on the one-to three-year Renminbi eenchirea loan rates pus an aiddltiOnel surcharge of 30% of the interest rate per annum The loan a pledged by bank accounts of I-Ea. property. Plant and equipment. land use rights and benefiCel Nhts of insomnia of the Galeria° wind farm Prase II and *au tonne farm Phase I, the 100% peid-in capital of Hortiton Ahnguole. tie 100% issued ShareeolHonecn XIL ard Kenton BAV. The outstanding loan balance was US$36 melon as of March 31, 2015 F-61 http://cfdocs.btogo.com:27638/cf/drv7/pub/edgar/2015/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0058338 CONFIDENTIAL SDNY GM_00204522 EFTA01366810