7 Short-term Borrowing

3 Months Ended

Sep. 30, 2015

Notes

7 Short-term Borrowing

7              SHORT-TERM BORROWING

Short-term borrowing consists of the following:

	September 30			June 30
	2015			2015
Shijiazhuang Finance Bureau (a)		$	78,446		$	81,582
Shijiazhuang Construction Investment Group Co., Ltd (b)			4,863,661			5,058,086
Mr. Li Hui (c)			-			2,304
Hebei Henghui Investment Management Co., Ltd (d)			2,478,898			3,263,282
TianJin Heng Xing Mirco Finance Bureau (e)			3,922,307			4,079,102
Total		$	11,343,312		$	12,484,356

(a) A non-interest bearing note payable to Shijiazhuang Finance Bureau, an agency of a local government, due on demand.

(b) A one-year loan from Shijiazhuang Construction Investment Group, disbursed through China Construction Bank. The notes bear an annual interest rate of 12%. $1,882,708 was due on October 25, 2015 and was extended to April 24, 2016. $2,980,953 was due on July 12, 2015 and was extended to October 25, 2015 and then further extended to April 26, 2016. The notes were secured by certain registered trademarks and renewal certificates relating to Aoxing’s Zhongtongan capsule.

(c) The balance of $2,304 as at June 30, 2015 represents unpaid portion of interest which was repaid during the period.

(d) A six-month term loan from Hebei Henghui Investment Management Co., Ltd. The note bears an annual interest rate of 10% and will be due on April 16, 2016.

(e) A short term loan from TianJin Heng Xing Mirco Finance Bureau. The note bears an annual interest rate of 20.04%, due on March 17, 2016.