Note 6 - Short Term Loans

6 Months Ended

Mar. 31, 2014

Notes

Note 6 - Short Term Loans

Note 6 – Short Term Loans

The short term loans as of March 31, 2014 and September 30, 2013 consisted of the following:

	March 31, 2014		September 30, 2013
a) Loan payable to Nanchong City Bureau of Finance due on demand at fixed interest rate of 0.465% per month	$	648,800	$	650,400
b) Loan payable to Nanchong Commercial Bank due on January 24, 2014, which was paid in full in January 2014, at fixed interest rate of 6.6% per annum, guaranteed by a third party		-		813,000
c) Loan payable to Nanchong Commercial Bank due on  July 1, 2014 and March 7, 2015, at fixed interest rate of 6.6% and 6.9% per annum, guaranteed by a third party		1,622,000		813,000
d) Loan payable to Nanchong Bank of Communications due on July 1, 2014, at floating interest rate, guaranteed by third parties, Mr. Pu Fachun, Zhang Xuchu and Feng Ting, Hedi Medicines		811,000		813,000
e) Individual loans from unrelated parties, which are due on demand and bearing interests from 0% to 72% per annum		4,361,558		2,256,400
Total Short Term Loans	$	7,443,358	$	5,345,800

The Company pledged its land use right and its building and equipment to a third party to secure the bank loans.