Note 6 - Short Term Loans

9 Months Ended

Jun. 30, 2014

Notes

Note 6 - Short Term Loans

Note 6 – Short Term Loans

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

	June 30, 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	$	649,600		$	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 March 7, 2015, at fixed interest rate of 6.9% per annum, guaranteed by a third party.		812,000			-
d) Loan payable to Nanchong Commercial Bank due on July 1 , 2014, at fixed interest rate of 6.6%,  guaranteed by a third party		812,000	(1)		813,000
e) 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.		812,000	(2)		813,000
f) Individual loans from unrelated parties, which are due on demand and bearing interests from 0% to 72% per annum		7,525,616			2,256,400
Total Short Term Loans	$	10,611,216		$	5,345,800

1)       The Company paid off the loan on July 1, 2014, and entered a loan agreement with Nanchong Commercial Bank for $812,000 on July 22, 2014. The principal will be repaid on July 23, 2015, bearing a fixed interest rate of 6.9%, guaranteed by a third party.

2)       The Company paid off the loan on July 1, 2014, and entered a loan agreement with Nanchong Bank of Communications for $812,000 on July 28, 2014. The principal will be repaid on July 27, 2015, bearing a floating interest rate and guaranteed by a third party.

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