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LOAN PAYABLE - BUILDING PURCHASE
12 Months Ended
Jun. 30, 2015
Debt Disclosure [Abstract]  
LOAN PAYABLE - BUILDING PURCHASE

NOTE K - LOAN PAYABLE - BUILDING PURCHASE

 

On March 2, 2011, the Company entered into an agreement with Meihekou Hang Yilk Tax Warehousing Logistics, an auctioneer, to purchase office and warehouse facilities. The purchase price was $1,472,128 (RMB 9,000,000). On June 24, 2011, the Company made payment of $81,785 (RMB 500,000) leaving a balance of $1,390,343 (RMB 8,500,000). On September 10, 2011, the Company paid 8,000,000 RMB through the proceeds of a loan with Merkekou City Rural Credit Union. The loan was due on August 12, 2012. The interest rate is a floating rate adjusted upwards by 190%. At June 30, 2015, the Central Bank Rate was 4.85%. Applying the adjustment factor yields a rate of 18.43%. The loan is secured by the building. The remaining 500,000 RMB was paid as follows: (a) 100,000 RMB in December 2010 and (b) 400,000 RMB in June 2011. On August 30, 2012, the loan was renegotiated extending the maturity date to August 29, 2014 and required principal payments of 1,000,000 RMB (USD 163,570) in September 2012; 1,000,000 RMB (USD 163,570) on August 29, 2013; 1,000,000 RMB (USD 163,570) on December 20, 2013 and 5,000,000 RMB (USD 817,848) on August 29, 2014. None of these payments were made by the Company and the note is thus in default.