LOANS

9 Months Ended

Mar. 31, 2013

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

NOTE 9 – LOANS

Loans are as follows as of the respective balance sheet dates:

	March 31,		June 30,
	2013		2012
Short-term loans	$	130,835,913	$	111,166,838
Long-term loans, current portion		14,066,114		27,762,975
		144,902,027		138,929,813
Long-term loans, non-current portion		2,319,979		8,490,772
Total loans	$	147,222,006	$	147,420,585

The short-term loans outstanding as of March 31, 2013 and June 30, 2012 bore a weighted average interest rate of 5.15% and 5.81% per annum, respectively. These loans were obtained from financial institutions and have contract terms of three months to one year.

The long-term loans outstanding as of March 31, 2013 and June 30, 2012 bore a weighted average interest rate of 5.84%% and 5.13% per annum, respectively. These loans were obtained from financial institutions and one individual. Long-term loans have contract terms of one to three years.

Short-term loans as of March 31, 2013 were secured/guaranteed by the following:

Secured/guaranteed by
Jointly guaranteed by (i) a related party, and (ii) the Company's property, plant and equipment	$	34,427,248
Guaranteed by the Company's cash deposit		27,495,615
Guaranteed by the Company's property, plant and equipment		27,095,520
Guaranteed by a related party		21,198,260
Jointly guaranteed by (i) the Company's cash deposit, (ii) the Company's notes receivable		9,500,000
Unsecured		7,969,270
Guaranteed by the Company’s trade accounts receivable		3,150,000
Total short-term loans	$	130,835,913

Short-term loans as of June 30, 2012 were secured/guaranteed by the following:

Secured/guaranteed by
Jointly guaranteed by (i) a related party, and (ii) the Company's property, plant and equipment	$	35,633,403
Guaranteed by a related party		23,280,490
Guaranteed by the Company's cash deposit		19,500,000
Guaranteed by the Company's property, plant and equipment		19,004,482
Unsecured		7,918,534
Jointly guaranteed by (i) a related party, and (ii) the Company's notes receivable		4,814,469
Guaranteed by the Company's trade accounts receivable		1,015,460
Total short-term loans	$	111,166,838

Long-term loans, current portion as of March 31, 2013 were secured/guaranteed by the following:

Secured/guaranteed by
Guaranteed by the Company's cash deposit	$	6,800,200
Guaranteed by the Company's property, plant and equipment		4,405,919
Unsecured		2,859,995
Total long-term loans, current portion	$	14,066,114

Long-term loans, current portion as of June 30, 2012 were secured/guaranteed by the following:

Secured/guaranteed by
Guaranteed by the Company's cash deposit	$	23,626,900
Guaranteed by the Company's property, plant and equipment		4,136,075
Total long-term loans, current portion	$	27,762,975

An amount of $14,066,114 and $27,762,975 has been reclassified from long-term loans, non-current to long-term loans, current as of March 31, 2013 and June 30, 2012, respectively, to reflect amounts will be due and paid within 12 months.

Long-term loans, non-current portion as of March 31, 2013 were secured/guaranteed by the following:

Secured/guaranteed by
Guaranteed by the Company's property, plant and equipment	$	2,319,979

Long-term loans, non-current portion as of June 30, 2012 were secured/guaranteed by the following:

Secured/guaranteed by
Guaranteed by the Company's property, plant and equipment	$	5,630,777
Unsecured		2,859,995
Total long-term loans, non-current portion	$	8,490,772

The Company must use the loans for the purpose specified in borrowing agreements, pay interest at the interest rate described in borrowing agreements. The Company also has to repay the principal outstanding on the specified date as described in borrowing agreements. Management believes that the Company had complied with such financial covenants as of March 31, 2013, and will continue to comply with them.