Company: PAVS
Filing Date: 2025-08-04
Form Type: 20-F
Source: 0001929980-25-000590
Chunk: 64

Company: Paranovus Entertainment Technology Ltd.
Filing Date: 2025-08-04
Form: 20-F
Item: Item 4
Chunk 64
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 to Doing Business in China.”

Cash Flows through Our Organization

The cash transfers within our organization are generally made in the following manners: (i) the Company transfers cash to its subsidiaries by way of providing loans, making capital contributions and providing operating cash, and (ii) the Company’s subsidiaries transfer cash to the Company by way of repayment of loans and repayment of operating cash due to the Company. Other than cash transfers, no transfer of other assets has occurred between the Company and its subsidiaries. The following table presents cash transfers between the Company and its subsidiaries for the fiscal year ended March 31, 2025, 2024, and 2023:

  The Company transfers cash to its subsidiaries by way of      FY2025      FY2024      FY2023      
  cash dividends                                                $           $           $-          
  providing loans                                               $           $           $-          
  making capital contributions                                  $           $           $660,000    
  providing operating cash                                      $           $           $500,136    
  Total                                                         $           $           $1,160,136  
 ────────────────────────────────────────────────────────────────────────────────────────────────────

  The Company’s subsidiaries transfer cash to the Company by way of      FY2025      FY2024      FY2023  
  repayment of loans                                                     $           $           $       
  repayment of operating cash                                            $           $           $       
  Total                                                                  $           $           $       
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────

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On July 31, 2020, the Board of the Company declared a special cash dividend of $0.015 per share. The dividend, equal to $375,000 in the aggregate, was fully paid on August 17, 2020. Except for the aforementioned, the Company has not made any dividend distribution to its shareholders, and the Company’s subsidiaries did not make any dividend or distribution to the Company. Pursuant to the PRC Enterprise Income Tax Law and Implementation Regulations for the Corporate Income Tax Law (the “ CIT Law”), a withholding tax rate of 10% would apply to any dividends paid by a PRC “resident enterprise” to a foreign enterprise investor, unless such non-resident enterprise’s jurisdiction of incorporation has a tax treaty with China that provides for a reduced rate of withholding tax and such non-resident enterprise is the beneficial owner of the dividends. The Cayman Islands, where the holding company is incorporated, does not