Concentrations of Business and Credit Risk

6 Months Ended

Dec. 31, 2014

Risks and Uncertainties [Abstract]

Concentrations of Business and Credit Risk

5. Concentrations of Business and Credit Risk

The Company has a credit risk exposure of uninsured cash in banks of $31,407 as of December 31, 2014. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks on its cash in bank accounts. The Company does not require collateral or other securities to support financial instruments that are subject to credit risk.

The Company’s list of customers whose purchases from us were 10% or more of total sales during the six months ended December 31, 2014 and 2013 is as follows:

	2014						2013
a. Customers	$			% to sales			$			% to sales
Shanghai Bayou Co., Ltd.		2,852,853			26			-	*		-	*
Hangzhou Desheng Metal Products Co., Ltd.		1,073,484			10			-	*		-	*
Shanghai Hongyu Metal Co., Ltd.		-	*		-	*		5,759,341			24

* Not 10% customers for the relevant periods

The Company’s list of suppliers whose sales to us were 10% or more of our total purchases during the six months ended December 31, 2014 and 2013 is as follows:

	2014				2013
b. Suppliers	$		% to Purchases		$		% to purchases
Maoxun Trading Co., Ltd.		2,394,932		23		8,260,817		32

* Not 10% suppliers for the relevant periods

Our management continues to take appropriate actions to perform ongoing business and credit reviews of our customers to reduce our exposure to new and recurring customers who have been deemed to pose a high credit risk to our business based on their commercial credit reports, our collection history, and our perception of the risk posed by their geographic location.