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 eft ectrve 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 Long-term bank loans USS LISS Loans from Starclard Chartered Bank 37,265 36,310 Loans from Mesheng Bank V 345 32,223 current Le Len portico p (41.S 4691:561104) 88,533 1.12 Taal longterm bark loans, excludng currenApation 28,038 27,990 As of March 31, 2015, there was no weed interest to Gina kl Moreno 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