6 Loan Payable - Bank

9 Months Ended

Mar. 31, 2013

6 LOAN PAYABLE - BANK

Loan payable – bank consist of the following loans collateralized by assets of the company:

	March 31,		June 30,
	2013			2012
Bank Note in the amount of 30 million RMB with Bank of Communications bearing an annual floating rate of 7.872%, set to be 20% higher than the interest rate of the People’s Bank of China rate, initially made on April 29, 2011, renewed on April 18, 2012 for one year maturing on April 18, 2013	$	4,775,854		$	4,747,061

Bank Note with Beijing International Trust Co., Ltd bearing an annual interest of 18%, 1.2 million RMB maturing on July 20, 2013 and 1.2 million RMB maturing on December 20, 2013		382,068			-

Bank Note in the amount of 25 million RMB with China CITIC Bank bearing an annual floating rate of 8.528%, set to be 30% higher than the interest rate of the People’s Bank of China rate, originally to mature on April 13, 2013. The loan was repaid on September 6, 2012		-			3,955,884
	$	5,157,922		$	8,702,945

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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