RELATED PARTY TRANSACTIONS

9 Months Ended

Dec. 31, 2011

14.

RELATED PARTY TRANSACTIONS

(a)

Names and relationship of related parties:

Name of related party		Existing relationships with the Company

Mr. Xu Kecheng		Director and controlling stockholder of Chisen Electric
Zhejiang Chisen Glass Company Limited (“Chisen Glass”)*		A company controlled by a close family member of Mr. Xu Kecheng
Mr. Xu Keyong		A close family member of Mr. Xu Kecheng
Ms. Zhou Fang Qin		Spouse of Mr. Xu Kecheng
Changxing Chisen Xinguangyuan Company Limited (“Xinguangyuan”)*		A company controlled by a close family member of Mr. Xu Kecheng
Zhejiang Ai Ge Organism Products Company Limited (“Ai Ge Organism”)*		A company controlled by Mr. Xu Kecheng
Zhejiang Changxing Nuo Wan Te Ke Glass Company Limited (“Nuo Wan Te Ke”)*		A company controlled by a close family member of Mr. Xu Kecheng
Zhejiang Changxing Ruilang Electronic Company Limited (“Ruilang Electronic”) *		A company controlled by a close family member of Mr. Xu Kecheng

These are direct translation of the name in Chinese for identification purpose only and are not the official names in English.

(b) Summary of balances with related parties:

	As of December 31,		As of March 31,
	2011		2011
	US$’000		US$’000
Due from a related party:
Ms. Zhou Fang Qin		5		8

Due to related parties:
Mr. Xu Keyong		2		2
Chisen Glass		1,176		1,201
Ruilang Electronic		1,863		2,616
Ai Ge Organism		314		304
Nuo Wan Te Ke		-		3
Xinguangyuan		1		-

		3,356		4,126

All amounts due from / to related parties represent unsecured advances which are interest-free and repayable on demand.

(c) Summary of related party transactions:

			Three months ended December 31,				Nine months ended December 31,
Name of related party	Nature of transactions		2011		2010		2011		2010
				US$’000		US$’000		US$’000		US$’000

Ruilang Electronic		Purchase of raw materials		2,969		2,609		3,888		6,743
Chisen Glass		Purchase of raw materials		1,453		988		1,835		2,408

(d) Other arrangements:

As of December 31, 2011, Chisen Glass provided guarantees, in aggregate, amounting to US$4,723,000, US$1,181,000 and US$3,542,000 to secure the short-term bank loans, notes payable and bills financing of the Company, respectively.

As of December 31, 2011, Mr. Xu Kecheng, Ms. Zhou Fang Qin and a third party provided guarantees, in aggregate, amounting to US$2,361,000 to secure the bills financing of the Company.

As of December 31, 2011, Xinguangyuan, Mr. Xu Kecheng and Ms. Zhou Fang Qin, provided guarantees, in aggregate, amounting to US$12,311,000 and US$1,574,000 to secure the short-term bank loans and notes payable of the Company, respectively.

As of December 31, 2011, Chisen Glass, Mr. Xu Kecheng, Ms. Zhou Fang Qin and Ruilang Electronic provided guarantees, in aggregate, amounting to US$1,102,000 and US$11,020,000 to secure the notes payable and bills financing of the Company, respectively.

As of December 31, 2011, Xinguangyuan provided guarantees, in aggregate, amounting to US$13,544,000 to secure the bills financing of the Company.

As of December 31, 2011, Chisen Glass and certain third parties provided guarantees, in aggregate, amounting to US$3,936,000, US$787,000 and US$2,361,000 to secure the short-term bank loans, notes payable and bills financing of the Company, respectively.

As of December 31, 2011, Chisen Glass, Xinguangyuan, and certain third parties provided guarantees, in aggregate, amounting to US$3,463,000 to secure the bills financing of the Company.

As of December 31, 2011, Mr. Xu Kecheng, Ms. Zhou Fang Qin, Xinguangyuan and certain third parties provided guarantees, in aggregate, amounting to US$5,986,000 to secure the bills financing of the Company.

- Definition

The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(k))

-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Article 3A

-Section 04

-Paragraph b

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 57

-Paragraph 1-4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 850

-SubTopic 10

-Section 50

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39678-107864

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Article 4

-Section 08

-Paragraph k

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 850

-SubTopic 10

-Section 50

-Paragraph 6

-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 850

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 850

-SubTopic 10

-Section 50

-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39622-107864

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 850

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864

+ Details

Chisen Electric Corp 10-Q