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LOAN PAYABLE TO FINANCIAL INSTITUTION
12 Months Ended
Jun. 30, 2015
Debt Disclosure [Abstract]  
LOAN PAYABLE TO FINANCIAL INSTITUTION

NOTE J - LOAN PAYABLE TO FINANCIAL INSTITUTION

 

In 2002, the Company’s subsidiary, Tonghua Linyuan, borrowed 2,000,000 RMB from Ji’an Qingshi Credit Corporation at an interest rate of 6.325% per annum with a maturity date of April 4, 2003. The loan is currently in default. In March 2008, the lender verbally agreed that no principal or interest need be paid until the company is generating profits. Interest has been paid on the loan through June 30, 2009 and has been accrued in subsequent periods. The loan is secured by the company’s inventory and equipment. The loan balance at, June 30, 2015 and 2014 is $327,139 and $325,055, respectively. The loan balance is included in Liabilities of Discontinued Operations on the accompanying Balance Sheet.